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Thursday, February 18, 2010

Future Pricing Structure For Custom Wood Parts

One of the hardest things for me, when structuring Rustic Woodworking, was to determine a fair and lucrative pricing structure for my wood products. There definitely has been a learning curve for me. More times than not, I have responded to a custom quote request with a per-piece price, which resulted in a total loosing proposition for me. That simply will not continue. I have searched my competitors websites, and my pricing is drastically less than what they charge.

I try hard to provide accurate lead-times, but if one order takes longer to process than anticipated, all the following orders are affected, which has frustrated some of my customers. With my new trucking schedule, I will have more time to devote to my business, my new shop, and custom orders.

I will be working on a new pricing structure for my custom cut wood products.

I have a good idea of what sizes and species of wood are in high demand, and I will be pre-cutting as much inventory as I can so they can be ordered directly off of my Rustic Woodworking website.

Here is a list of my thoughts so far (let me know what you think).
  • Large quantity orders will have priority after in-process orders are compleeted. Quantity will be a factor, and still to be determined.
  • Even though I try to satisfy all customers, lack of planning on your part does not constitute an emergency on my end. All rush orders will be evaluated to see if I can do it without significantly affecting current orders in process. There may be an extra Rush Order fee, depending on what you are ordering and when you need it. For example, if I have a supply on hand of the cut wood slices you need, and just need to sand them, or drill a hole, I might be able to get it out to you without really affecting other customers.
  • Wood slices will be available for immediate purchase on the website soon. Please plan your branding and customization accordingly.
  • Diameters of wood slices will not be so specific. For example, if you order a bunch of 1" slices, you may actually receive up to 2" in diameter. If you order 3" slices, you may receive 2.5" up to 4" in diameter. I will make updates on the website for this.
  • Log and branch poles and sticks will be sold by linear feet per diameter. I am still working on the calculations.
  • Pricing will be based on rough-cuts. Additional fees will apply for sanding, treating, and hole drilling, etc. I have been selling small birch slices for 50 to 70 cents per slice. My competitors are selling the same product for $1.50 to $5.75 per slice. They do not offer additional services.
  • Almost all of my customers want the bark to stay on the wood slices. Nature takes it's course, and that's almost impossible for some types of wood. In order for me to keep an inventory of wood slices that retain bark, I simply must treat them with Pentacryl.
  • I will be offering many miss-cuts and bark-off slices at a substantial discount, but there will not be an option for additional sanding, holes, etc. Those will be sold per USPS flat rate box so that I can determine shipping.For wedding table center piece slices, and because I realize that newly weds are on a budget, I will be offering slices specific to that use at a rough-cut price. I use a lumber cutting band saw to cut these slices. I am able to cut slices up to 16" in diameter with a fairly smooth cut compared to a chain saw cut. Because I try to cut logs cross-grain, instead of the conventional lumber type cut, an extra clamping system has to be built for safety and accuracy. Please check back here for updates.
  • Mosaic parts will be sold per box. Too hard to count.
  • SHIPPING:
  • I cannot quote a price for shipping unless the wood I ship USPS (United States Postal Service)is pre-determined. If your order fits into one of their Flat Rate boxes, that is how it will be shipped. Most of the times a 100 slice order, 1/2 slice, fits into a Large flat rate box. 100 slices cut ats 1" won't fit, and I have to use Parcel Post. In comparison, if the order is substantially less than a flat rate box, it is cheaper to send it Parcel Post. Parcel Post requires weight, dimensions, and destination information, and every package is different. If your order will not fit into a USPS Flat Rate box, there will be an extra charge for the boxes and shipping material I provide to ship your order, and an extra handling fee because USPS will not pick up a Parcel Post box. Shipping materials, like boxes, are not included in my pricing structure.

Thank you for viewing this blog. If you have any comments or suggestions, please send me an email. Contact information is available on my website, or click here. If you add yourself as a follower to this blog, I believe you receive updates by email, but I'm not totally sure about that.

Sandy

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