How to Price Your Handmade Wood Projects Without Second-Guessing Yourself

How to Price Your Handmade Wood Projects Without Second-Guessing Yourself

A Friendly Guide for Creators Who Build with Heart (and Skill)

Let’s be honest:

Pricing your work can feel like the most uncomfortable part of selling it.

You love the making part: the measuring, the sanding, the sawdust. You’re proud of your finished piece. But when it comes time to put a price tag on it?

Suddenly, you’re stuck between two thoughts:

“I don’t want to scare people off.”

and

“But I worked hard on this!”

Sound familiar?

You’re not alone.

At Third Shift Crafts, we hear this all the time—especially from women who are just starting to sell their woodworking projects. There’s this pressure to be “affordable” while still wanting to make it worth your time. And it’s easy to fall into the trap of undercharging because, well, you’re just one person with a saw in your garage.

But here’s what we believe:

You’re not just selling wood. You’re selling time, talent, and craftsmanship.

And that has real value.

So, let’s walk through a simple, no-stress approach to pricing your handmade wood projects—one that helps you cover your costs, pay yourself fairly, and feel good about the number on the tag.

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Why Pricing Feels So Tricky (Especially for Makers)

Before we dive into formulas, let’s name why this feels hard in the first place. If you’ve ever struggled to set prices confidently, it’s likely because of one (or more) of the following:

• You’re afraid people will think it’s “too expensive”

• You compare yourself to big box stores or underpriced sellers on Etsy

• You don’t feel “experienced enough” to charge a fair wage

• You’re doing this out of love, and it feels weird to assign a dollar value to your passion

• You’re worried about rejection—pricing feels personal

We get it. Truly. But here’s the reframe:

Pricing isn’t selfish. It’s sustainable.

It’s how you keep creating. It’s how you invest in better tools. It’s how you honor the hours you spent learning, building, finishing, and packaging. And yes—it’s how you remind yourself that your work matters.

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The Simple Pricing Formula (That Actually Works)

Let’s keep it practical. When in doubt, start with this foundational formula:

Materials + Time + Overhead + Profit = Price

Let’s break it down step-by-step:

1. Materials

This one’s easy to overlook—but it adds up fast!

Materials include everything you used to complete the project. Not just the big stuff like lumber, but also the little things:

• Wood (boards, dowels, plywood, etc.)

• Screws, nails, and other fasteners

• Wood glue

• Sandpaper (used per project)

• Stain, paint, sealant, or finish

• Handles, hinges, hooks, or other hardware

How to track it:

• Keep a spreadsheet or notebook with your material costs

• Save your receipts from Home Depot, Lowe’s, or your local lumber yard

• Break down bulk purchases (e.g., a $10 can of stain used on five trays = $2/tray)

💡 Third Shift Tip: Don’t guess. Estimate generously and consistently.

2. Time

This is the one most makers seriously undervalue. But your time is valuable—especially if you’re working evenings and weekends or squeezing in builds between family life and a full-time job.

Track how many hours you spend on a project from start to finish, including:

• Cutting and assembly

• Sanding (don’t forget this!)

• Painting, staining, and finishing

• Dry time and re-coating

• Custom requests

• Packaging or delivery prep

Then, multiply your time by your desired hourly rate.

Suggested hourly rates:

• Beginners: $15–25/hr

• Experienced woodworkers: $30–60+/hr

• Custom work or premium builds: $60–100/hr or more

💡 Yes, you’re allowed to raise your rate as you gain skill and confidence.

3. Overhead

Overhead covers all the little things you use over time that don’t get counted in materials but still cost money:

• Electricity for power tools

• Tool wear and maintenance

• Shop supplies like rags, gloves, and tape

• Sanding discs and dust collection

• Packaging materials (boxes, bubble wrap, tape, stickers)

You can either:

• Estimate a flat amount per project (e.g., $3–$5 for small builds)

• Or fold it into your hourly rate

💡 Third Shift Tip: Overhead isn’t “extra.” It’s part of doing business—even at the hobby level.

4. Profit (Yes, You Deserve This)

Profit is the piece that lets your business grow.

It’s not greedy. It’s not a bonus. It’s a necessity.

Profit is what helps you:

• Replace tools

• Grow your skills

• Cover unexpected costs

• Feel energized—not exhausted—by your sales

A common approach is to add 10%–30% profit after materials, time, and overhead are covered. But if your item is in high demand, customized, or deeply branded, you can charge more.

Real-Life Pricing Example:

Let’s say you made a custom wooden tray:

Materials:

• Wood: $6

• Handles: $3

• Stain/sealer: $1

• Total Materials = $10

Time:

• 2 hours x $20/hr = $40

Overhead:

• Estimated $5 (tools, shop rags, packaging)

Subtotal = $55

Profit (20%) = $11

Final Price = $66

Round it to $68 or $70 based on your local market.

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Other Smart Pricing Tips for Woodworkers

Here are a few more tips that can help you set prices that are fair, confident, and sustainable:

1. Know Your Market

Before setting your price, check out:

• Similar handmade items on Etsy, Facebook Marketplace, or local craft fairs

• Prices at boutique shops, not just big box stores

• Local customer expectations (rural vs. urban, budget vs. premium)

You want to be competitive—but not a copycat.

💡 Important: Don’t match prices from sellers who are clearly undercharging. That’s not your lane. You’re building quality, not chasing cheap.

2. Don’t Undercut Yourself

You’re not Walmart. And that’s the point.

Your buyers aren’t looking for the lowest price—they’re looking for meaning, quality, and a connection to the maker.

When someone buys from you, they’re saying:

“I value your work, your time, and your style.”

Let that sink in.

3. Offer Tiered Pricing

Want to reach different types of buyers? Offer a mix of:

• Budget-friendly builds (like small signs, coasters, or keychains)

• Mid-range items (like trays, wall shelves, boot jacks)

• Premium pieces (like coffee tables, custom furniture, or heirloom gifts)

Not every customer is ready for a $200 centerpiece—but they might happily spend $20–$30 on a handmade gift.

4. Charge More for Custom Work

If a customer wants:

• A specific size

• A different color

• Engraving or personalization

• Special materials or finishes

That’s not just a build—it’s a custom order.

And it deserves a custom price. Add 15%–50% depending on the request, time, and complexity.

💡 Third Shift Tip: Always be clear and upfront about custom pricing in your listings or messages. Your time is valuable.

5. Raise Prices as You Grow

Here’s a secret most makers don’t talk about: your prices should grow as your skills do.

If your builds are cleaner, your finishes more refined, and your style more recognizable—raise your prices.

You’re not a beginner anymore. And your work reflects that.

Customers who value your craftsmanship will stay—and you’ll make room for more sustainable growth.

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Third Shift Truth:

You’re Allowed to Profit From Your Passion

Your handmade work isn’t just wood and glue. It’s:

• Time you carved out of your day

• Skills you took months or years to learn

• Creativity, precision, and problem-solving

• Energy, effort, and emotional investment

That deserves compensation.

So the next time you hesitate to price a piece, remember:

You’re not just making things. You’re building something meaningful.

Your work has value. And you’re allowed to charge for it—proudly.

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Final Encouragement from the Workshop

Don’t let pricing keep you stuck.

Don’t let fear undercut your worth.

And don’t let comparison steal your confidence.

Whether you’re selling at your first craft fair, launching an Etsy shop, or quoting a friend on a custom build—trust that your work matters.

Start with a fair formula. Add your magic. And stand behind your price.

Because you’re not just building wood projects.

You’re building a business.

And you’re doing it your way—one piece, one price, one proud moment at a time.