As someone who just had a Peloton delivered yesterday, I feel attacked... Lol

When I retired I started making custom furniture and figured if I tripled my cost and paid myself a really nice hourly wage and figured if I sold a few pieces a year I would be happy, found myself needing to hire help to keep up with my orders. Took some time to catch my breath and doubled my prices and got even more business. Doubled them again and orders slowed down enough that I could keep up and 1 order a month or so was still paying all my bills.

Another consideration when pricing. If your cost is $80 and you sell for $100, then profit is $20. And if you raise price to $110, then your profit INCREASES to $30, a 50% increase. So you only have to sell half as many boards to get the same profit. It took me a long time to understand this and put it to work. PS...thanks for the thought provoking video

I learned this lesson (the hard way) many years ago. I was an artist living in NYC and selling my work in street markets. I mostly sold in Union Square at a price point around $20. I did very well there so I decided to try a market in SOHO.... I didn’t sell one pice for three days. Then another artist told me to raise my price from $20 to $50. I thought they were crazy... if they weren’t selling for $20 why would they sell for $50? He explained to me that no one in SOHO buys anything other then coffee for under $50. If it’s less then that, they assume it’s not worth owning. I raised my prices and made $500 in three hours the very next day. Price your art for what it’s worth and people will see it. Don’t hide it’s value behind a discount sticker. ✌️♥️

I took a class in high school back in the 70s that I never forgot. The teacher explained why people who work in advertising can make as much as MDs. She explained the "bandwagon" theory: convince people that a product is something that a person just has to have from skinny jeans to a SawStop table saw and people will pay no matter what the price.

great video , and your absolutely correct , 95% of us wood junkies underprice our work by at least 150% in my opinion , I am the most guilty of it

Great content! It’s so hard to wrap your brain around upping prices when you are the maker. We sell ourselves short all the time!

Pricing is always a struggle and every time I feel like I've gotten it right, someone tells me I've under priced and should be charging more. It's all a part of the self-doubt that comes with being a new woodworker/maker - "is my stuff really good enough?". Once we believe in ourselves, our customers will too! Thanks for the vid guys!

Dunno how I missed this video, but you're spot on! I price my goods for those with disposable income, not those looking for a deal. I love woodworking but I also love my free time, so I charge accordingly.

I used to have a wedding video production company. When we raised prices above 2k we also saw an increase in business. My thoughts were if I am more expense than 90% of my competition, there must be a reason. It also helped us not to work with clients we didn't want. People who paid more money were less needy and "trusted" the process.

I had an auto repair business i bought from a friend. He charged $55 and hour and brought in customers that couldn't afford his prices. When I got the business I upped my labor to $90 and hour (which was more inline with the local dealerships) and changed the price structure on the parts for more profit. My business grew. I got rid of the people that couldn't afford to fix their cars and brought in people that could afford to pay for their car repairs. So yes pricing will determine the customers you bring to you business. But quality also plays a big part. If you're going to ask a big price you better give a great product or service. That's just my $95

Wow... I felt like this video was made for me personally. From the saw stop comment to the "too much time in the shop" comment. Thanks guys!

I have always enjoyed your content, but as a prospective woodworker, I appreciate this series even more (even if it is your first episode of the series). You guys are awesome.

I am a hobbyist, but when I do try to make a go of a woodworking business, I will never sell at craft fairs. I will try to sell at art festivals where people value art. Also, if you are going to ask anyone what you should charge, you need ask someone that buys expensive items, someone that actually spends money on quality.

This is valuable information.... I sent this to my wife. She is a baker (cookies, cakes, ect). Her work is so amazing that several people have decided not to eat the cookies just because of the art she does. On the other hand the cookies are the best cookies anywhere. The problem is she severely under charges for the amount of work she puts into them.

Finally, someone else who understands pricing! I learned long ago that the lower the price, the more problems I have with customers. The higher the price, the happier the customer and the least problems I have with them.

When the value of your product exceeds the price, people will buy. People pay for perceived value! Build value in what you sell... Like personalization or features or benefits and people will buy! Great video!

Hey you guys as a woodworker for the last 35 to 40 years I have to tell you that this is extremely valuable information I wish I would’ve learned these lessons early on instead of trying to be the cheapest guy thinking that would get me sales and work you’re absolutely right we as custom manufacturers cannot compete with Walmart or target or any of the big box stores that just isn’t our market if people come to you wanting something cheaper their not your customer I don’t want to sell 1000 things at one dollar apiece I want to sell one thing for $1000 or more thanks guys keep up the good work!

You are absolutely correct with this concept. I am a massage therapist, and when I raised my prices to the point of being the highest in my area, I got MORE new clients. And several existing clients said, "It's about time!" I should clarify that my work is not your typical Swedish or deep tissue massage -- I specialize in resolving chronic pain. But it's true that if you give people quality, they will pay more for it. And the more they pay, the more they appreciate it.

You two hit the nail on the head. Amazing how many people think nothing of spending $250 on a pair of sneakers for their kids to wear to school but they will argue till they are blue in the face trying to convince you that the box-jointed custom made, custom engraved box you want to sell them for $75 is just too high! They can get a piece of crap from Michaels that's falling apart with no custom engraving for just $29.95! I heard the story from back in the day when Olivetti made computers. They weren't selling very well...so they increased the price on their computers and they couldn't keep up with the demand. Funny how that works. I am just a hobby woodworker who manages to sell something on occasion and I always feel guilty when I price something to someone. I'm not going to feel guilty anymore and I'm going to charge what I need to so that it's worth my while. Thank you both!

Great information for someone who is just starting making cutting boards. Will be watching for your next video on this topic. Thank you,my eyes r now open.

I learned a long time ago that when a product says "MSRP" (Manufacturer's Suggested Retail Price for those who may not know), it's a price set by the store, not the manufacturer. Yes, the store/dealer, in order to boost the sale price, sets the MSRP.

I don't usually comment on videos, but this information was golden. My wife has been saying for a while that I'm pricing too low, I've never thought about looking up the "high end" versions of what I make. I'm looking forward to this series!

I really liked the way both of you addressed this issue. You weren't just referring to your business. You, predominantly, spoke for the rest of us who have this exact problem. Thank you for some of the best content on this matter. It was simple and concise.

Wow!!!!! I am amazed by this video. I watch all your videos religiously. I too am a woodworker (musician by trade up until the pandemic) and I struggle soooo much with pricing and you have hit the nail on the head with this one. I see now what everyone has been telling me about my prices that they are too low. I have struggled and struggled with this. This resonated with me when you say the ones shopping at Walmart and Target are not my customers. Thank you thank you thank you for this video

The phrase about loving your work...best ever! This will be a sign hanging in my work shop. 😆 And, about not lowering your prices...preach! It's all about perceived value baby!

This is probably the most important thing I needed to hear today! Thank you guys so much for making this video. Haha, I've actually done jobs where I've only made 2$ an hour, and this is what I do for a living.

Please bring more of this. It is exactly what I have been struggling with for many years. Thanks for a well done and informative video.

I know you’re right! Ive sold my stuff out at a low cost and even given stuff away for free. As a beginner as a hobby I’m ok with that , but not anymore! Time to find new customers set the price right and be willing to walk away!

Learned this 20 years ago in my plumbing business. Doubled my price and actually got more work. And the client's were better, no more bitching about price, they just wanted a job done as soon as possible.

GREAT video. Based on my marketing experience, pricing is set based on your brand value (what you want your customers expectations to be). So if you want to be known as a high-quality brand, you set a higher price point. Or, conversely, if you rather be known as the value-leader or high value brand, you set a lower price point. In short this is known as brand positioning. The last thing you want is to be known as is everything to everybody.

Fantastic advice! Those shoes are worth $1,000 to someone for sure, just not you or me. The person buying them would think I'm crazy for spending $300 on a fountain pen. Everyone has passions. Selling into them is good for you because you make $$$$ and good for them because they get to enjoy the pride of ownership every time they slice an onion.

Following you guys all the way from South Africa. It's so on point with this video. Woodworkers all over complain that they can't make a living with wood work only to cut their prices to the bone in the believe it will generate more sales. That leads to my other pet hate, people that want to run a business but say they don't want to do sales because it's not in their nature.

The content that you produce is so valuable to me. As I am taking the steps to start a woodworking business focused on small wares (to start) I find myself consistently in "analysis paralysis". Your upbeat and real content is a source of inspiration for me and is helping me to take the steps I need. - THANK YOU!!!

This video reminds me of a truck box my best friend was trying to get rid of. He took it off his truck, and put it by his driveway with a sign on it that said "Free!" It sat there for 2 or 3 days, no one even slowed down to look. So, we're talking on the phone one day and he's telling me about it, and how he wanted this truck box GONE. So, I told him, "Put a sign on it for $25, $50 dollars. It'll be gone in hours." He argued good naturedly with me, on the "they don't want it for free, why would they pay money for it." I told him to just do it. And he did. Later that day, I get a phone call from him, and he's laughing. "Dude, you were right. I can't believe it. Put a sign on it for $50, someone 'stole' it. It's gone." We had a good laugh. Perceived value is worth more than actual value. I learned that somewhere ... and constantly forget it when I go to bid or price something ...

I have always undersold my work , that all stops today! Great video I will be watching you in the future for sure.

As a small business owner in a very niche market I appreciate this video.

This is really good advice/perspective. My wife wanted a large wood sign she saw at a craft fair to hang in our dinning room. It was about 4' long, said "We Gather Together To Give Thanks" and priced at $225. I told her don't buy it, I will make you one. The sign I made, from old fence pickets I got for free and some OSB scrap, was much nicer than the $225 sign and it cost me less than $10 in material and about 2.5 hours of my time. I would never dream I could sell that sign for $225 but here was my wife ready to pay that price.

Some thing I learned years ago, as a photographer, from Peter Hurley, an extremely successful headshot photographer, is if you are booked up(or extremely busy, for a particular month, you raise your prices the next month. If you are still booked up the next month, you raise your prices again. You keep doing this every month until you level off and that is where you find the sweet spot for your price point.

Oct 2022 Peloton just laid off a bunch more people, and stock is going down. Luis Vuitton, not so much, lol. I just raised my individually hand crafted item pries for the craft show this weekend. Thanks for the quote at 8:32: "Enjoying your work is a bonus, not a form of payment."

Time and material + how many you want to make + how well you make them + how you market it + demand you created = better profit. Buyer pays shipping because they vary can kill sales as people see free shipping as a discount so include it in time and materials.

This is a great video. So many of the points have the ring of truth! Walmart customers will never want to pay for handmade no matter how little you charge. All it does is devalue your work, your knowledge and your skill. Thank you for this.

You guys rock! I really like the first video in this series. On to number 2

Thanks for the tip! Right now, I'm just learning and practicing my craft, but I'd eventually like to start selling some stuff. Good to know people like you are out there hustling and making it work!

Everything you say is so very true. The problem though, in some cases, is finding the market to sell to who is willing to pay what your work is worth. For some products and services I have sold, it has been easy to find the right places and customers to market to. Other things you sell can be a challenge to find the good customers/clients and even then you can stumble into a honey hole of tons of great customers or it can be one or two here and there. I'd love to see you make a video on ways you have found to find the best places to market and to find the best customers who are willing to pay what your products are worth. I would love to weed out the bargain shoppers, but I feel like raising my prices aren't enough to do that. I also need to get my products/services seen by those who will pay the higher price. Depending on where your items are displayed, raising price may weed out the Walmart shoppers and attract the big buyers or it may just slow down sales, in which case I'd say it would be time to find better places to market.

This video is exactly what I have been thinking about... thank you for making this.

You know what they say: "there's a sucker born every minute" (re: $1,000 tennis shoes)

I agree with much of what you said in the video. Pricing is largely perception. If you can convince people that they are getting something special , then yes, you can charge more for it. However, better marketing of an average product does not elevate it's quality. If you watch Antique's Roadshow ,then you know,the finale is generally a treasure. On one episode, the prized item was an American Windsor chair, 18th century , Philadelphia. It was beat up, repaired, had at one time been converted to a rocking chair, then restored back to a dining chair. Valued at $65,000. Probably one of 6, hacked out by a talented craftsman, and his apprentice(s), working fast to get them out the door. I'm sure the maker had produced many such chairs, none more special than any other. The value was in the rarity. Chairs get knocked around, loosen up, fall apart. Not many had survived, and pre-revolutionary furniture is highly sought-after. Earlier in the same episode, they had appraised an armiore. It was European, carved, inlaid with beautiful burled veneers and surely represented hundreds of hours of great craftsmanship. Appraised at maybe $6000.... When a tradesman declares himself an "artiste" it is just that..... a declaration. The artist who is in the good graces of the critics and gallery owners is cashing in on celebrity, not necessarily talent. In Nashville , Hollywood and New York , your waiters and waitresses are some of the best songwriters, actors and playwrights you've never heard of( and sadly, probably never will!) If you're determined to make a living as a craftsman, or, turn your hobby into a flourishing business, every step you take in the direction of marketing, or production, is a step away from art, from craftsmanship. A doghouse is a doghouse, a cutting board is a cutting board. If trophy wives and the nouveau riche gush about the "artist" they discovered, on social media, well great! But don't let it go to your head. In the Victorian era, there were highly-specialized tradesman who earned the equivalent of a million dollars annually. They carved furniture and statuary. They inlaid exquiste floors; worked in stained glass, gold leaf, mother of pearl. No amount of marketing could increase their yearly output. No one else could perform these tasks. A motivated person , of modest skills can earn a living .Beyond that, it is business. If your work(and,or business model) is superior, you can charge more. If your work is vastly superior, and unique, people will pay a LOT more because the word will be out among the enlightened. If you work is ground- breaking, unlike anything that has come before and equally loved and hated, it is probably art, and you are probably too consumed by some vision to care if anyone likes or buys it.

Well done! I love the jokes you guys throw in. Beyond that, there is some serious info here. I mean that sincerely. I was going to price my cutting boards at rock bottom but now I see the other side of the coin. Again, great info!!

You guys inspire me. Honestly I’m scared to list my first piece for sale. But I think tonight when I get home, I’m going to try to sale my first project

I built a garden bench to sell a couple years ago and no one bought it. The next year I raised the price $40 and sold 11. I didn't change anything else, I even used the same photo.

Say it louder for those in the back!!! Thank you this guys, I send people over to your pricing video when they are asking for advice and Ill send this to them as well. People love to have a race to the bottom when it comes to pricing, I always say that if their clients wont pay what their product is worth then then they need to find new clients! Under selling yourself is the quickest way to hate our time spent in the shop. The comment 're "Boos" is 100% on the money. We push towards high end clients because they always have money (even during a recession) and are happy to spend the extra for quality. Great video, thanks for sharing the content and have an awesome day 👍🏼

My dad use to have a booth at an antique mall. He would buy furniture and have little things in there to buy. He had gotten an bunch of cheap wrist watches that he paid $4-5 a piece for and so he priced them at $12.50, but never sold one. One of the guys at the booth next to his said the issue was they were too cheap. He raised the price to $30 and sold 5 that weekend. People equate price with quality. It is a mental thing.

Good topic, I struggle on pricing for one of the reasons you mentioned. I am going to put some thought into how I should raise my prices. I plan on starting my own KZfaq channel on DIY anything. ....

Lumber prices and my time are my base line before I add mark up. My go to philosophy is just to be “fair”. If I can know that I am being fair then I’m happy and it tends to result in happy (and repeat) customers that also refer me to others.

Hi greeting from the UK, stumbled on your vid, great brilliant, thank you. Agree with you all the way! Subscribed

Approaching realtors… is utter genius. I never would have thought of that!

I think what the companies like Peleton, Nike, etc. have in common is marketing. High-quality photos and videos to promote their product. I think that doing that with your product could give you great results. I sell handmade walnut cutting boards for about $120 in my area while other people struggle to sell for $80. But I also use my portrait studio to take studio shots of my cutting boards! I need to do a video!

I am rarely motivated to comment but THANK YOU for this video. I am an artist/craftsman and I have watched a lot of videos on everything about my craft - this is one of the most valuable I seen. In less than 10 minutes, you hit enough "Eureka" moments that it became hard to see though the water in my eyes. When you said "If you want people to appreciate your work and genuinely love it - price it that way!", I shouted out loud (too bad SOL already has a meaning) and hit Like and Subscribe. I am anxious to discover what else you will teach. If one of your goals for this video is to foment change, you have succeeded.

Great info! Very Encouraging Thank you!

Your absolutely correct about pricing. Stan

I subscribed because of this video. I am a wood turner and have problems selling my work. I finally find myself giving my small bowls away.

Wow very informative. Just hit subscribe. Thank you so much.

I didn't know how much I needed to see this video until I watched this video.

THANK YOU for the tip regarding Walmart. That's been bothering me for a while, but no longer.

Almost 10 years ago I bought a 2006 Ford 450 with a Lance 1181 camper on it. New it would have cost over $130,000 I paid $60k for it. You can't get an equal new truck for $60k let alone with the camper. The camper by itself will cost that much. The value of an object is what someone will pay for it. Bracket price anything you make, charge 3 different prices at 3 different times and see what price works. I made a Scentsy display stand for someone. It had electric outlets on it to plug in diffusers, lights, fancy(no charge, labor of love). They came back from a show saying more people wanted to know where they could get the stand than were interested in the product on it. "You could make a fortune selling those!" They thought, untill I told them the time and material cost that went into it. I'd have to charge $500 for a less than 3ft wide by 8 inch high stand to get the material and labor back. No one selling Scentsy is going to pay that. You have to sell a lot of pretty smells to make it worth that much.

I was thinking this myself, you have to find the people who know and see quality items and are willing to buy them.

"Back in the day" I did animated 3D logos for companies. This was when animation software ran on DOS or Amiga and rendered frame by frame to a Betacam SP tape deck. Anyway, I found that not only did pricing high just make sense, customers who pay a premium are almost easier to please than if I cut someone a break. The latter would often begin a sentence with "Can't you just....". Nope. Good. Fast. Cheap. Pick two.

I just came across this. Neighbour had their house up for sale for about $830k. Was up for months, they dropped the price by 60k over time, and nothing. Next thing, it's up for sale at around $920k. It sold quickly for $860k. The price increase pushed it into a higher, better funded customer base, and it sold as a result.

Commenting for the algorithm and to say thank you. A couple years, I was making and selling rough cut garden beds from lumber I got from my local sawmill. I made some profit, but they were a surprisingly large amount of work for the amount I was making. I decided to increase the prices to over double what the materials cost. People were still happy with the price, even though it seemed like too much to me. I even tried offering to sell them the lumber directly, but people wanted them cut and drilled. I realized I can't value them at what *I* think it's worth. I need to set them at a price that someone without my skillset or tools would value them at. Also I like the shoes. I wouldn't buy them, but yeah, they're cute.

Ok...ok....I think there is a discussion topic here somewhere.....but, you nailed it perfectly! You have to build, buy, sell what the customer wants according to their tastes are and not your own and price to what they are willing to pay. That is to pay for their got to have item! Think of the most ugliest piece of art....then look at its price tag....someone will or have bought it a thousand times over. Great topic and job on this...looking forward to more in this series! Moose-Out!!

Simple supply and demand- raise the price until the supply and demand curves match. If you can't keep up either increase production capacity or increase the price so your demand drops to your capacity. If you don't you are losing out on money

my hubby to used to figured out the price for a price of furniture based on the coast of material and our time and than I tripled it.

Yes, keep them coming!

I have had a tough time in this area of my woodworking. I have an electrical service business and don't have this problem. I will start researching more and going from there. Thank you for sharing your video.

I find it easier to lower prices than to raise them so I price high to start and offer a sale price or % off if sales are slow before lowering the price. I sell unique vintage items and sometimes I’ll raise or lower the price to get noticed on eBay.

I remember being in Vegas years ago when I saw a billboard that read "Surf and Turf, $4.95." I had absolutely no interest in steak and lobster that would only cost $5.

Thanks for the video. I seem to regularly talk to people about supply and demand as there are so many odd ideas folks have about pricing and the value of goods. Particularly in the time of COVID.

You are so correct, but this puts me in the position where I most likely need to make it myself rather than buying.

I think an issue is trying to be competitive as well. I blacksmith and a lot of smiths price their work well below minimum wage on markets like Etsy.

This was super helpful. I make knives and I definitely sold myself short on the first few so far. Thank you for your video. This is my first one I've found from you guys. I subbed! I found that a couple of my first customers were comparing my prices to knives they see at Walmart or other similar stores. It was difficult trying to get them to understand that those knives were made from sub par materials and by machines. I guess if the potential "customer" doesn't like my price, then I must move onto a different customer. 🤷 My time is in short supply and it's worth a lot to me. I guess I have to find a balance in there somewhere though. My time shouldn't be priced TOO high, right? ☺️

JLR Workshop-- I've seen a few of your videos over the last 2-3 years and they are well done and entertaining. But, seeing this series for the first time today, made me finally subscribe to your channel. What an inspiration you two are to the makers community, I will be watching every one of your videos from now on! Thanks for the encouragement! Maybe you'll see some of my own vids in the near future...

Excellent video, thanks.

Thank you for sharing your advise. I will be trying out your methods for pricing. Well done and thanks again!

Love this video. Needed to hear this !

As a table builder and new business owner, I did myself a favor and stopped by RH and One Kings lane. Reason? I’m in Florida, yet I’m not targeting All Floridians, I’m targeted the millionaire homes and new arrivals from New York and the east coast... bc to them, a $3k table is cheap compared to the $10k they would spend in New York ;)

Guys you are amazing, thanks, this question was really bugging me for the last 2 month. Thank you so much. Much love& stay safe😇

I have seen this idea before and have experienced it myself. I always am afraid of pricing too high, but it's important to value your time appropriately.

Thanks for sharing, that’s good stuff👍

Thank you a thousand times thank you. I lowered a price and regretted it. Changed it back after this video.

Price not just based on your time, but on materials, your work space, your equipment, etc.

I am a Maker and thank you for this information. I never know how to price my work!

Great tips and it's 100% correct. Another very very important thing is your name!! If you call your firm "Glen's woodworking" or "Better Letter" you are sure to get less money than if you name your company "Diotony" or "Castello". Your name has to be like a persons name, but with a foreign ring to it, Italian, French or something. You can use local names, but it makes it harder to promote.

I would like to Thank both of you.This has changed my way of thinking on pricing my products. And it makes so much sense.Thanks again and I have subscribed.

Jan 6, 2022, just found your channel today. This info in this video is insanely important and beneficial to everyone. Definitely helps me reevaluate my products worth. Thank you.......

I really like your content and attitudes.

I LOVE YOU GUYS OMG I WAS SO UNSURE ABOUT THE PRICING BUT WOW!!! UGH IDK WHAT ELSE TO SAY THAT WLL CONVEY MY RELIEF, THANK U

LoL, great content! I have been tinkering out of my basement making urns, cremation rings, pens and cutting boards for a few years. I am often told I should start an ETSY shop, but by items made are gone as soon as they are made. There is no time for me to build inventory. I guess I better raise my prices! It is fun to do though. Great job you two!

Great advice. Terrific presentation. Well done!

Ahhh man I would recommend a basic economics class. Price isn't created in a vacuum. Seller set the initial price but up/down is dictated by the market. Too high and you get no sales to low and you get no sales. Quality is also a major factor.... that helps to dictate the price range. But you are 100% correct on you should not be pricing your own product and you certainly should not be setting you price based on some arbitrary group of people. If you're creating a luxury product you should not be trying to put it on a Walmart budget and if you're creating a bargain product you shouldn't be pricing it at a Vuitton budget either.