This is the first in a series of posts covering the topics around pricing your work.
“How much should I charge for this?”
Pricing is one area that woodworkers can really get it all wrong. Even with all the discussions, blog posts, articles, books, and forum threads dealing with this subject, we’re still seeing more and more people throwing their hands in the air out of total frustration and confusion. And with all these apparent discussions going on there still apears to be a lack of resources on the subject. We haven’t seen a book published on the subject in almost ten years.
Strange? Well, maybe not considering most of the advice being drolled out is irrelevant, outdated, and based on a big fat lie. It’a a lie that keeps woodworkers from really growing and doing their highest most valuable work, while breeding complacency for just being active. And there’s a pretty good chance that you’ve been buying in to this lie for a long time.
Before we expose this giant falsehood, let’s take a look at what’s being passed around as the common pricing formula for woodworkers:
What you consider the end-all is really just a starting point.
Here’s a version of the standard answer to “How do I know what to charge?”
This is what’s widely accepted as the end-all pricing formula for anyone making furniture or selling related services. But, there’s a flaw. It’s just a formula for covering your costs, not for making profit. Now before I appear to rip this all to shreds, let me say that covering your costs is a very good thing. If you’re going to make a living selling your furniture, then you have to know your overhead costs, material expenses, and what your time is worth. Using this formula will help you get a foundation for making sure your time and expenses get covered. But that’s it. That’s all it does. This isn’t a pricing structure that is designed to bring in real profit and make every pass of the plane and chop of the chisel a valuable action.
If you’re looking to make a living creating beautiful high end furniture or related work, then you have to come to a point where you no longer accept your time as anything less than precious. Every movement must produce the highest value and bring about the greatest of results. Each moment must be used on the most important work you could ever be doing.
An hourly based pricing formula like the one above, doesn’t allow for your time to be used on only the most important game changing tasks. Instead, it holds you prisoner to the clock. Time becomes your master, when in reality, you’re the one who’s supposed to be controlling time. In order to start making life easier on you and bring in profit that allows you to grow, you have to move away from a per hour pricing structure. Before doing that, though, you have to become aware of the un-truth that’s holding you back from living and working at your highest level.
Time ≠ Money For The Small Shop
You’ve heard the overused archaic saying, “Time is money!” We all grew up hearing it, believing it, and praciticing it. Well, guess what? Time DOES NOT equal money.
This is one of the greatest untruths for the creative small shop woodworker that exists in society today. The idea of time equaling money is based on old factory and mass production mentalities. You had a certain number of products to make and move and 8 hours of production time was found to be the most effecient for maximum results.
Now, if you’re reading this than most likely you’re a small independent shop with anywhere from one to just a few people doing the work. You create beautiful objects of distinction and provide unique services that can never be reproduced in mass quantity. Everything about you says high quality work with careful attention to details. And yet, you’re adopting a production mindset with how you approach your work and your pricing.
In reality, for a small woodshop, time doesn’t equal money. Time equals time. That’s it. Plain and simple. It’s always going to be a constant struggle if all you do is try to squeeze in as many billable hours as possible in a day.You WILL NOT make money trying to beat the clock completing projects. You will only find yourself overworked, exhausted, stressed, and still grossly underpaid. Is that the life you envisioned having as a woodworker? So why are you still tolerating it?
The reason time does not equal money for the small shop woodworker is because your time is too precious and your product is too valuable to be sold at an hourly rate only. What if you only had four hours at the most in your shop everyday? How could you maximize that time so you made money? Is it even possible to do that? If your income is dependent on billable hours, then no, it isn’t possible. Your pricing is dependant on working “X” number of hours for “X” number of days a week. (For a lot of you that quickly turns into 7 days a week, doesn’t it.) If you stopped believing the lie that time equals money, then you free yourself to be able to do the highest and best work in a shorter amount of time. Did you catch that? Work less earn more. Yes, that’s what I meant to type.
Freeing yourself from the lie of time equals money allows you to begin working on the most important life changing tasks and projects. It gives you total control over your time and makes room for delivering the highest possible value in all you create and getting paid for that value. It brings you into the space to reclaim your time as your own. It means you’ll never be duped again by society’s limitations on work and life.
So, what are your thoughts on time and money? Is there a disconnect in how you’re pricing your work and how long you spend in the shop? Is this simply the post of a dreamer?
Tell me all about it down below.
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What roles are you avoiding in your Woodworking business?
In the first installment I took you through some of the often overlooked mental requirements for selling your woodworking online. Surprising, wasn’t it? This time, let’s take a look at the roles you’re going to have to adopt if you’re going to sell your precious work online or even in real life for that matter.
A lot of woodworkers (yours truly included) start out thinking that it’s enough to just love to make things and that passion and superior craftsmanship would be the only tools needed to make a terrific living in woodworking. Fast forward some years later, and you have a totally different scenario. You’re either convinced that there’s no way to make money doing what you love, or you’ve reserved yourself to the idea that in order to make a living, you have to take on less-than-stellar work that doesn’t excite or satisfy you in any way. More often than not, woodworkers find themselves in one of these scenarios because they’ve ignored the vital roles that must be adopted in order to really succeed in business.
While this is certainly not an exhaustive list by any means, I am going to hit on what I believe are the top 3 roles that are ignored, or fearfully avoided by a lot of woodworkers.
Marketer
This is a big one. I’ve heard a lot of woodworkers say things like, “I’m a woodworker, not a marketer, so I don’t understand marketing at all. I shouldn’t have to.”
I used to work in my shop with those exact words running through my mind. Is it any wonder why I didn’t make great progress the first five years? Is it any wonder why you haven’t either?
The marketer role is one you’re afraid to assume because you feel inadequate, unlearned, or have been turned off by sleazy marketers in the past. Well, it’s time to fear it no more. In fact, it’s high time to embrace it because, if you are going to make a living or even a supplemental income with your woodworking, you’re going to have to get comfortable and confident with who you are and what you have to offer. That’s what you’re communicating anyway – who you are and what you believe.
For most of you, the problem lies in your understanding of the word marketing. In the beginning, most of you probably think marketing is advertising. You immediately think of newspaper ads, radio and TV commercials, full page magazine spots…and that leaves you dwelling on the crippling costs involved. Well, advertising can be part of marketing, but it’s really only a small fraction that you can choose to implement.
Marketing in it’s simplest definition is communicating your core message to the people who are seeking that message. The marketing role is the backbone of your woodworking business. Virtually everything you do is a form of marketing because virtually everything you do communicates a message to people. Your design, construction methods, wood choices, preferred finishes, and even finished photographs are all a part of your marketing message. All of those aspects communicate something about you to potential buyers. So, since you are already marketing (even though you aren’t aware of it) why not embrace this role and begin to hone these skills as passionately as you hone your woodworking skills? I promise you’ll like the difference this mind-shift makes.
Need a better grasp on marketing your furniture? I know someone who can help.
Salesperson
I think, by far, this role is the most avoided and detested out of all of them. Why? Because you have told me so on numerous occasions.
Run the word “salesperson” through your head and pay attention to what happens. I’m betting most of you kinda threw up a little didn’t you. It’s because we’ve all had bad experiences with plaid suits pushing junk cars, insurance policies, and other not-so-stellar items or services. Sales isn’t sleazy, people are. But, like anything else, the past should not dictate your current reality or forthcoming future.
Sales is important, no make that crucial, for your success online. How else do you expect people to buy? They have to be convinced that your product or service is the one and only thing that will make their life better. This does not mean deceiving, slick-talking, or pushing them into doing something they didn’t want to do in the first place. That is not selling. That’s scamming. BIG difference. What I’m talking about is learning your ideal client’s needs, wants, likes, hopes, desires, and loves. Then, you present the offer that provides that for them. Yes, again I’m over simplifying, but it sounds a bit more noble now, doesn’t it.
Take the initiative to begin learning how to be the salesperson for your woodworking products. Who better to communicate the beautiful benefits of experiencing your work, then you, the maker? Like anything worth doing this is a skill to be exercised daily. Study, observe, and DO great sales tactics and techniques. You’ll be very pleased in the long run.
Writer
“Writer?! I’m a woodworker. I’m not going to write anything!”
Before you let this ridiculous phrase stick in your cranium, let me just remind you that we are talking about online sales here. Online as in the Internet, as in websites with content, product descriptions, sales pages, and lest we forget blogs. If you’re going to sell your work online, then your primary method of communication will be writing. It’s the material people read when they come your site. It’s the blog posts you’re crafting for your ideal customer. It’s even the content of your About page.
You will, I repeat, will be spending a great deal of time writing if you are going to put any serious effort into making money online with your woodworking. It’s essential. Solid writing skills allow you to show the benefits of your products in the least amount of words. It gives you the ability to touch people’s hearts and minds with your core message that in turn, ignites their hidden flame of desire to own the product around that message. Like you I loathed the idea of writing and learning to be a stellar writer. Nowadays, I’m seeing it differently. That’s why I’m taking great strides to become an effective communicator through the written word. The benefits just make too much sense to not do it.
Stop Avoiding to Start Succeeding
These roles are the Big 3 that I see avoided time and time again in existing solo woodworking ventures. Doing this is certain death. You won’t make real progress in online sales without adopting and embracing them. You can certainly hire out each of these roles, but in the beginning I believe it’s vital you learn them intimately first. For those of you in the “I wish” stage of selling your woodworking online, it’s important to gain a true perspective on the necessity of these roles for your soon-to-be business.
As many of you know, I’ve been on a quest to turn around the last 5 years of my woodworking business faux-pas. Part of that involved confronting my avoidance of these roles. As I have changed my mind about them over the last 18 months, something very surprising happened. I became downright fascinated with learning them as best I can. Now, I get as excited about the latest marketing article as I do about this month’s woodworking magazine! Selling is no longer a concept that turns my stomach. Instead, it’s an opportunity to learn more about my customer and deliver what they need. And that’s the secret. Change your mindset about these roles, and let them become as intriguing as learning to make a housed sliding dovetail key.
These roles are simply just another set of tools and skills to learn. The only difference is instead of the end result of a finely crafted piece of furniture, you get a finely tuned business. I promise good things ahead. When you stop avoiding these 3 roles, you stop avoiding your success.
Are you avoiding these roles? Why? Why not? What other roles should be included on this list?
P.S. If you need help designing furniture that sells, grab this free resource now.
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What do you do when you see a real need in your world?
You make something valuable to help as many people as possible!
As the internet sees more and more woodworkers harnessing it’s amazing potential, the need to learn solid principles of marketing and selling one’s work becomes more urgent.
It’s no secret that Alison Heath and I have been working at joining forces lately. (If you’re not familiar with Alison, you really need to check out her new site here!)
With Alison’s background and expertise in furniture marketing, and my experience as a growing woodworking entrepreneur, we decided that we could help a lot more people in the online woodworking world by working together rather than both of us trying to go at it alone.
So, we decided to get together and make something amazing, awesome, and FREE just for you.
Seriously. We want to make a free resource that helps you take your ideas of selling your woodwork online and turn it into solid reality. In order to help us make and give away exactly what you want, we would really appreciate your help letting us know what that is exactly.
We have a small 3 question survey that will give you the chance to tell us exactly what you would really like to have. Please take a minute to fill it out. It would mean a lot to us. Think of your answers as the intricate, perfect-fitting joinery that will hold this project together!
Thank you so much for helping out Alison and I. You’re opinion is really important to us.
Be looking for this free resource very soon and just think, you’re helping build it! How cool is that?!
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The internet is truly magic. Where else can you accomplish so many things at once? It’s the only place that I know of where I can watch skaters getting hurt, check my email 15 times a minute, read my buddy’s blog posts, download the greatest obscure hits of the 80’s, play a never-ending game of Street Fighter, carry on micro conversations, and learn Scottish Gaelic. All while eating breakfast!
Ok, maybe I’m exaggerating a wee bit, but there’s no denying the amazing potential that exists for anyone looking to harness this instant portal to millions of eyes and minds. In the last few years, the internet has allowed a huge number of companies to take shape, when in the conventional real world, they would have never gotten off the ground. It’s this draw that has a lot of people seriously considering making a living using online resources. It’s also this draw that has my inbox seeing the same question on a regular basis:
“How do I get started selling my (woodwork) online?”
That’s a big question. There are a lot of factors to consider when taking your work online. Besides the product itself, there’s branding, the marketing plan, web presence, social platforms, payment and shopping cart integrations, shipping options, …hey, that’s just the tip of the iceberg. But, before your head starts swirling trying to contemplate all of that at once, you need to ask yourself the most important question that will determine the future of your online woodworking career.
Do I have what it takes to sell my work online?
What does it take, exactly? You hear all the time about passion, desire, determination, etc. Those are crucial, to your success. For sure. But, what’s at the level right above those things? What exactly does the passion and desire fuel? What’s next after you recognize your passion for woodworking and your desire to begin selling your work?
Self identity as a woodworker.
Throughout your lifetime as a woodworker, you will change directions, shift your focus, and reinvent yourself on numerous occasions. But, at the beginning it’s vital to get a realistic view of who you are as a maker and what you have to offer. This means sitting down, taking time to understand where you are now in the craft and getting a vision of where you really want to be down the road. Do you desire to work by yourself in a small shop creating one of a kind pieces? Is your vision of the future perhaps designing high end work that others than build for you in a shop of 10-15 employees? This vision of the future will help dictate the first moves you make in selling your work online.
This sense of identity also includes your designs. Take stock in what you design and how you design it. What are your influences? Why do they influence you? How is that showing in the work you do now? Will people resonate with those designs, or does it only appeal to you? Is there room for them to expand and evolve, or have you designed yourself into a proverbial corner?
Self identity is confidence in your abilities now and confidence in the abilities you will gain as you grow. This confidence is vital to carrying you through the process of learning to sell.
The ability to handle consistent rejection.
Guess what? The majority of people who see your product in the beginning are going to pass you by. Yep. It’s true. This is due to a number of factors, like not enough recognition, wrong product in front of the wrong audience, not being persuasive enough, etc. I’m not telling you you’ll never make a sale. What I’m telling you is that until you learn who needs your work and how to put it in front of them, you’re going to face some rejection. It won’t be mean, or hurtful. It will be a lot of nice compliments followed by, “No thanks.” It happens, and it will continue to happen throughout your career.
The first signs of rejection can send woodworkers crawling back into their shops vowing to never waste their precious time on the ungrateful general public again. It’s hard not to take it personally. I still struggle with it at times. You and your work are so intimately connected that if someone rejects your offer you really feel as though they flat out rejected you as a human being. Your subconscious is designed to defend you emotionally like that. Learning how to take rejection from the very start will really be a huge step in moving forward to selling online and in person.
It might seem like you need some thick skin to handle all of it, but I challenge you to shift your perspective on this. What if all of those “no thank you’s” ended up being a terrific source of marketing info? Think about it. With each rejection, you’re learning exactly who your work is not intended for, how not to present an offer, and how not to close a deal. Each rejection presents you with the opportunity to learn and grow with experience, and puts you one step closer to doing it right.
Patience to start slow and work up to where you really want to be.
How long did it take you to acquire the woodworking skills you use every day in your shop? How many of those skills allowed you to execute a brand new technique with absolute perfection the first time you tried it? I’m guessing that barring the rarest alignment of the planets, your answer is never. That’s because you need the trial and error experience of doing that skill in the precise manner that produces the desired result. Having never done that before, it’s very hard to visualize exactly what that perfect execution of skills looks like. Repetition of that skill produces the visual record of what works and what doesn’t. That’s why it’s so vital that you never give up until you learn to achieve the desired result.
The exact same formula of success is true when the skills being executed are sales, marketing, and relationship building. You need patience to start where you are now and move forward at the pace you can manage. Repetition is the key. You’ll fail at times and succeed at times. Take careful notes for both instances. Get that visual record of what works in your mind so you can repeat it over and over again with greater results.
It’s no easy task taking your personal woodworking pieces and placing them in front of a world wide audience. However, from my experience, if you possess the key foundation blocks that are necessary before attempting to sell online, then you stand a very good chance of continuing to sell and sell successfully when all others have given up. So, do you have what it takes to sell online? Only you know for sure.
What has been your experience with selling your woodworking online? Are there other qualities that you have found essential for starting this path?
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