Workshop resource
How to Price Woodworking Jobs
Price the whole job: the stock it consumes, the hours it takes, the shop costs it must recover, and the profit you intend to earn. Keep those assumptions visible so you can learn from the finished job.
Step 1
Build a complete cost before adding profit
Start with measured material quantities and supplier prices. Add productive labor, setup, cleanup, finishing work, and job-specific overhead. Include each cost once; an hourly shop rate may already recover overhead or profit.
- Separate work hours from unattended drying and curing time.
- Include bought-in parts, delivery, and subcontract work when they belong to the job.
- Use a waste allowance that matches the material and cut plan.
Step 2
Example: 25% markup is 20% margin
For a job with $300 of materials, $280 of labor, and $70 of overhead, base cost is $650. A 25% markup adds $162.50, giving a selling price of $812.50 before tax and selling fees. That $162.50 is 20% of the selling price.
- Markup price = cost × (1 + markup percentage ÷ 100).
- Target-margin price = cost ÷ (1 − margin percentage ÷ 100).
- For a 30% margin on $650, the selling price is $928.57 before tax and fees.
Step 3
Turn the estimate into an agreement
State the deliverable, dimensions, material, finish, exclusions, lead time, and payment milestones. Use the quote workflow to keep the customer decision with the work, then compare recorded costs with your estimate.
- Use the markup calculator when comparing markup and margin.
- Check selling-channel fees separately if you sell through a marketplace.
- Choose payment milestones that match the agreed scope and production schedule.