We like customers to know about whats going on in our business so here’s a breakdown of the pricing of a typical piece of furniture, like this coffee table.
We use this veneered board from PlyCo, which costs about $54.
The solid white oak for the legs from Mathews Timber, costs about $70.
It takes us about 6 hours of labour to make one of these at $25 per hour = $150.
Then there’s things like the finishing oil, sandpaper, electricity and other small things, say $10.
Total cost ~$284.
We aim for a 50% Gross margin to pay our overheads, making the final price $572.
We donate 5% of the gross margin to a charitable cause. In this case about $15.
Depending on the amount of work in a piece of furniture, the ratio of labour cost to material cost will vary, but most things a pretty similar to this.