What a piece actually costs.
WHAT TO INCLUDE
Timber and sheet material, at quantity used including waste Veneer and edging Hardware Adhesives and abrasives Finishing materials Labour, by operation Machine time Transport and installation Overheads
WHAT PEOPLE OMIT
Waste Abrasives and consumables Finishing time Delivery and installation Their own time
WHY WASTE MATTERS
Cutting from boards and sheets produces offcuts, and the yield is never complete.
WHAT TO MEASURE
Actual material consumed per piece.
WHY MEASURED
Costing on the theoretical requirement understates cost consistently.
HOW TO COST LABOUR
Time each operation, and apply an hourly rate.
WHAT OPERATIONS TO TIME
Cutting and machining Assembly Sanding and preparation Finishing Fitting hardware Installation
WHY SANDING AND FINISHING SPECIFICALLY
They consume far more time than anyone estimates and they are routinely omitted.
WHAT TO ESTABLISH
Standard times for pieces you make repeatedly.
WHAT THAT ENABLES
Accurate quoting and realistic scheduling.
WHAT TO ADD
An allowance for rework.
WHAT TO CALCULATE
Cost, then the price required for your margin.
WHAT TO DO IF THE PRICE EXCEEDS WHAT CUSTOMERS PAY
Simplify the design, change materials, or improve the method.
WHAT NOT TO DO
Absorb it by underpaying yourself.
WHY
It conceals an unviable product.
