VWA August Members Meeting
VWA Pricing Panel at The Leveson
On Tuesday 26 August 2025, the VWA hosted a panel discussion on a question that every maker faces:
“How do you price that?”
The session explored different business models, pricing strategies, and the realities of running a furniture-making practice today. Here’s a summary of the main ideas, with a comparison table and worked example at the end.
Batch vs Commission Work
Some businesses work almost entirely from a fixed catalogue of products, using a batch production model. Others combine catalogue items with commissions, batch runs, and fitouts.
These different approaches naturally shape how pricing is set, communicated, and sustained.
Pricing Models
Two main pricing models emerged:
Multiplier model: Add together the cost of materials and labour, then multiply the total by a factor (typically 2–3). This covers overheads and margin, while still aiming to keep work accessible to customers.
Hourly-based pricing: Start with an hourly rate that includes labour, productivity, and overheads. Add material costs and a set margin. New products are timed and costed to establish a price, with improvements in process or tooling used to reduce production hours over time.
Communicating Prices
Different approaches also apply when presenting prices to customers:
Publishing prices online provides transparency, reduces quoting admin, and ensures that only serious buyers make contact.
Providing a ballpark figure after enquiry allows for flexibility, particularly when work is custom. Customers willing to engage at this stage often understand the value of bespoke furniture.
Both methods have advantages, depending on the type of work being offered.
Marketing, Overruns, and Viability
Marketing: Can be built into overheads and budgeted for, or managed more organically through word of mouth and repeat business.
Overruns: If work takes longer than estimated, some businesses absorb the cost to maintain client relationships, while others adjust pricing if overruns become consistent.
Viability: Furniture making remains viable in 2025, with increasing demand for bespoke pieces. Success relies on sound business practices, attention to quality, clear communication, and continual refinement of processes.
Summary Table
| Batch Model | Commission Model | |
|---|---|---|
| Production Mode | Fixed catalogue, no commissions | Mix of set products, custom, fitouts |
| Pricing Model | (Materials + Hourly cost × hours) × % margin | (Materials + Labour) × 2–3 |
| Pricing Communication | Upfront pricing on website | Portfolio online, rough price on enquiry |
| Overheads | Rent, insurance, utilities, wages, tax, marketing | Rent, insurance, utilities, wages, tax |
| Margin | Specific % applied, Margin is used to reinvest in the business and allow sustainable working conditions | Built into multiplier, Margin is used to reinvest in the business and allow sustainable working conditions |
Worked Example: Coffee Table (10 hours to make)
| Batch Model | Commission Model |
| Staff wage: $50/hour @ 50% productivity = $100/hour Operator wage: $50/hour Overheads: $30/hour Total = $180/hour 10 hours = $1,800 + $200 materials = $2,000 +20% margin = $2,400 listed price | Materials = $200 Labour = $1,000 (10 hours @ $100/hour) Total = $1,200 × 2–3 = $2,400–$3,600 For this piece, $2,400 feels about right. |
We’d like to thank George Harper from Tide Design, Nick and Sunny from Timber Trip and Adam Markowitz our moderator, for their time and their generous insights gathered from years of practice.
If you’d like to see more sessions unpacking pricing and other business practices, let us know via the VWA contact form.