How to Price Your Woodworking Projects (Without Selling Yourself Short)

To all the woodworkers reading this… If you're here, I want to start by saying I've sat exactly where you sit. After tripping and falling headfirst into a passion for woodworking, I found myself asking "how the hell do I figure out a way to price this?"

It doesn't matter how you got into it. It could have been that high school class, or that part time job you landed. It could be your wife's ever-growing 'honey do' list, or maybe it was that YouTube guy who poured a Star Wars themed live edge epoxy table and sold it for more than the GDP of a small country.

Whatever it was, you ended up here driven by the desire to create something with your own two hands, and a power tool or two.

You’ve likely made a few projects by now that you finally consider to be a passing grade to your own hyper critical eye. You’ve also probably thought that if you sold a couple of these, you could probably get a better sander and make finish sanding far less soul sucking.

Well, you’ve found yourself in the next phase of the journey. Monetizing your passion.

Pricing projects can feel like trying to hit a moving target. Ask ten woodworkers how they price their work and you’ll get ten different answers. On top of that, once you’ve found a strategy that works for you, you’ll still have to explain to customers why your time and skill are worth the price tag.

Pricing Strategy Overview

Now it’s time to talk methods. That’s why you’re here, right?

• Some swear by doubling or tripling material costs
• Others track time down to the minute and cent
• Some copy market pricing or undercut competitors
• Others price purely on gut feeling

The truth is there’s no one size fits all method. Some strategies leave you underpaid. Others are so complicated they feel like corporate accounting in a garage shop.

In this post, I’m breaking down the most common pricing methods, their pros and cons, and giving you a framework you can start using today.

Why Pricing Matters More Than You Think

Pricing isn’t just about covering materials. Price too low and burnout follows. Price too high without matching value and customers walk away. And yes, customers will walk away regardless. Don’t let it bother you.

• Pricing too low leads to burnout and resentment
• Pricing too high leads to missed opportunities
• Proper pricing equals sustainability, not greed

You’re not just selling a product. You’re selling time, skill, quality, and luxury.

The Four Most Common Woodworking Pricing Methods

Simple Material Markup

How it works: Add up your material costs and multiply by two or three.

Pros:

• Fast and easy
• Good for simple, repeatable items
• Works for hobby focused shops

Cons:

• Ignores labour, overhead, and complexity
• Can severely underprice custom work

Best for: Beginners testing the waters.

Value Based Pricing

How it works: Pricing based on what the project is worth to the customer.

Pros:

• Often the most profitable method
• Ideal for high end custom work

Cons:

• Difficult without strong branding
• Risky without a structured process

Best for: Experienced makers with an established reputation.

Market Based Pricing

How it works: Matching or undercutting competitors.

Pros:

• Feels competitive

Cons:

• Creates a race to the bottom
• Assumes competitors priced correctly
• Often leads to underpricing

Best for: Short term sales focused makers.

Holistic Pricing (Recommended)

This is the system we use daily at The Knotty Lumber Co.

How it works: Estimate time, multiply by your hourly rate, then add materials and waste.

Pros:

• Scales with complexity
• Accurately reflects true costs

Cons:

• Requires realistic time estimates

Best for: Sustainable full time woodworking businesses.

Build a Pricing System That Works

You don’t need a degree in economics. You need a system.

Step One: Break the Project Into Phases

• Material sourcing
• Milling
• Glue up
• Sanding
• Finishing
• Assembly

Step Two: Estimate Time Generously

Setup and cleanup count. Experience teaches this lesson fast.

This example project requires 17 active labour hours.

Step Three: Add Material Costs

Account for waste. This project assumes a 20 percent waste factor.

Step Four: Multiply Hours by Shop Rate

Choose a rate that reflects skill, overhead, and growth.

Step Five: Tally the Total

Materials, labour, hardware, delivery, and taxes all matter.

Step Six: Offer Tiered Options

Basic versus premium finishes. Standard versus custom dimensions.

Common Pricing Mistakes to Avoid

Undervaluing Your Time

Experience deserves compensation.

Ignoring Overhead

Rent, power, insurance, and tools add up.

Underestimating Hours

Low estimates lead to underquoting.

Pricing Emotionally

Discounting below sustainability hurts long term growth.

Pricing tools

Most woodworkers don’t lose money because of poor craftsmanship, they lose it in their pricing. That’s exactly why we built our Hardwood Profit Calculator and Quote Calculator.

Profit Calculator

Use this when you already have a price in mind and want to see if the job is actually worth it. It shows you your true costs, profit, and profit per hour so you can decide if the project makes sense before you commit.

👉 Click Here to Download

Quote Calculator

Use this when you’re starting from scratch and need help figuring out what to charge. It works backwards from your costs and target margin to give you a price that ensures you’re making money on the job.

What's the difference?

👉 Simple way to remember:

Quote Calculator = what should I charge?
Profit Calculator = is what I charge worth it?

Together, they take the uncertainty out of pricing and help you run your woodworking like a real business, not just a hobby.

Final Thoughts

You’re not just selling a table. You’re selling craftsmanship, experience, and heirloom quality.

Pricing is a skill that improves with practice. The goal is sustainability, not perfection.

Keep making sawdust.