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Pricing for Profitably

27. April 2018 11:37

By: Sean Benetin, Millwork & More, LLC

Every woodworker I know struggles with pricing. If you have reviewed FMDC magazine’s annual pricing survey, you know that quotes for the same project vary drastically from company to company, and it’s not just the regional factor. Why is this so difficult?

Quite simply, it’s difficult to be competitive and still make a profit. So how do you find the balance?

In truth, pricing is not nearly as complicated as it appears. However, in order to profitably price projects, you need to know the answers to the following questions:

  • What is your hourly rate(s)?
  • What is your minimum break even yearly/monthly/weekly?
  • How much do you pay yourself as an “employee” of your company?
  • Total invested in your company? If you had to start from scratch tomorrow what would it cost?

Easier said than done, right? How do you even begin to calculate these things? How can you put a value on what some may consider “intangibles”? Do you wish that there was a “cheat sheet” that you could use? Why isn’t there an Easy Button for pricing and profitability?

Here’s the good news: there is an Easy Button – an actual “cheat sheet” does exist. I have taken the time to develop spreadsheets and pricing structures to calculate the numbers needed to price profitably. And, here’s even better news: I’m willing to share this information with you.

During my seminar at IWF, you will have the opportunity to learn “The Art of Pricing Profitably”.  In an straight-forward way, I explain the importance of knowing your numbers. Not only will you gain an understanding of key financial concepts, you will also leave with prepared spreadsheets that you can use to do your own calculations.  Essentially the class will set you up for future success. Consider this your springboard to profitability.  

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