Pricing Strategy for Woodworkers
Setting the right hourly rate requires balancing business costs, market demand, and personal income goals. Most woodworkers undercharge by 20-30%.
Last updated: 2026-02-27
Hourly Rate Calculator
Calculate your optimal hourly rate based on overhead costs, desired income, and business expenses with comprehensive pricing analysis.
Overhead Analysis Income Planning Pricing Strategy Business Metrics
Business & Income Parameters
Business Type
Desired Income
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Monthly Business Expenses
Business Parameters
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Market Analysis
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Rate Analysis
Add your business expenses and income goals to calculate your optimal hourly rate with comprehensive pricing analysis.
Hourly rates should reflect skill level, market conditions, and business goals. Research local competition and adjust accordingly.
How to Use This Calculator
- 1 Select Business Type Choose Solo, Small Shop, Contractor, Studio, Production, or Custom.
- 2 Set Income Goals Enter annual income goal, work weeks, hours/week, and billable percentage.
- 3 Add Expenses Add monthly business expenses: rent, utilities, insurance, tools, marketing.
- 4 Business Parameters Set profit margin, tax rate, emergency fund, and equipment reserve.
- 5 Market Analysis Enter market rate range, experience level, and specialization.
Pro Tip: Only 25% of time is typically non-billable (admin, marketing, maintenance). Track your actual billable ratio for one month to get accurate data for this calculator.
Rate = (Income + Expenses + Taxes + Reserves) / Billable Hours | Specialization | Beginner | Intermediate | Experienced | Expert/Master |
|---|---|---|---|---|
| General Woodworking | $20-30 | $30-45 | $45-65 | $65-90+ |
| Fine Furniture | $25-35 | $35-55 | $55-80 | $80-120+ |
| Cabinetry | $22-32 | $32-50 | $50-70 | $70-100+ |
| Restoration | $30-40 | $40-60 | $60-85 | $85-130+ |
| Carving/Sculpture | $25-35 | $35-55 | $55-85 | $85-150+ |
| Turning | $20-30 | $30-45 | $45-70 | $70-100+ |
Rates vary by region, market, and client base. Use as starting reference.
Rate Optimization Tips
- Track Billable Hours: Most woodworkers overestimate - solo typically 60-75%, shop 70-80%
- Tiered Pricing: Design/consultation (highest), custom (premium), production (standard), repair (varies)
- Review Annually: Adjust for inflation, new skills, and market changes
- Value Proposition: Emphasize quality, reliability, and unique skills to justify premium rates
- Emergency/Equipment Reserves: Budget 5-8% for unexpected costs and tool replacement
| Business Type | Typical Billable % | Admin Time | Marketing | Maintenance |
|---|---|---|---|---|
| Solo Craftsperson | 60-75% | 10-15% | 5-10% | 5-10% |
| Small Shop (2-5) | 70-80% | 8-12% | 5-8% | 5-8% |
| Production Shop | 80-85% | 5-8% | 3-5% | 5-8% |
| Contractor | 65-75% | 10-15% | 5-10% | 5-10% |
| Studio/Artist | 50-65% | 10-15% | 10-20% | 5-10% |
Non-billable time includes admin, marketing, maintenance, learning, and business development.
Glossary of Terms
Hours directly charged to clients. Non-billable includes admin, marketing, maintenance, and business development. Track ratio to set accurate rates.
Business expenses as percentage of revenue. Includes rent, utilities, insurance, tools, software. Typical range: 25-50% for woodworking businesses.
Percentage of revenue remaining after all costs. Target 15-25% for sustainability. Higher for specialized work. Lower acceptable for production/volume work.
Pricing method: Cost + Markup = Price. Calculate all costs (labor, materials, overhead) then add profit margin. Most straightforward pricing method.
Going rate for similar services in your area. Research competitors and position based on skill, quality, and specialization. Avoid racing to bottom.
Frequently Asked Questions
How do I determine my overhead costs?
Include all business expenses: shop rent/mortgage, utilities, insurance, tool maintenance, consumables, marketing, and administrative costs. Calculate monthly totals and divide by billable hours.
What percentage of my time should be billable?
Solo craftsperson: 60-75%. Small shop: 70-80%. Production shop: 80-85%. Account for admin, marketing, setup, maintenance, and business development.
Should I charge different rates for different work?
Yes. Design/consultation (highest), Custom furniture (premium), Production work (standard), Repair work (varies). Adjust based on complexity and demand.
How often should I review my hourly rate?
Annually or when major changes occur: increased expenses, new skills, market changes, or inflation. Track actual vs. projected income and adjust.
What profit margin should I target?
15-25% for sustainability. Higher (25-35%) for specialized work. Lower (10-15%) acceptable for steady production work or building client base.
How do I justify higher rates to clients?
Emphasize value: quality craftsmanship, experience, reliability, warranty, unique skills. Show portfolio, testimonials, and certifications.