Custom furniture pricing is not a SKU lookup. Two dining tables with the same name can have different numbers because one used oak, the other walnut, and the client changed the hardware three days before the build. The challenge is not calculating a price; it is building a repeatable way to get to the right price without starting from scratch every time.
The short version
Price = materials + labor + overhead + profit. Write the formula once, break it down per piece, and update the inputs as the spec changes. The quote should be clear enough that you can read it in six months and still understand why the number was what it was.
Start with what this piece actually costs
Before markup, before the client budget, before the Pinterest reference, you need the real cost of the build. This is the number that protects you from the project that sounds good but pays badly.
Materials
Wood, hardware, adhesive, finish, fasteners, and anything bought specifically for this order. Include waste, off-cuts, and the board foot you lose to a knot. If you have to buy a full sheet but only use half, charge for the full sheet or track the remainder as stock you can reuse later.
Labor
Track every hour the piece touches: design, cutting, joinery, sanding, finishing, installation, and the admin around it. Multiply by your hourly rate. If you do not have an hourly rate yet, pick one that would let you hire someone else to do the work and still leave you a profit. That is your floor, not your ceiling.
Overhead
Shop rent, tools, electricity, insurance, software, and the hours you spend on the business but not on the bench. Add a percentage to every job to cover these. A common starting point is 15–25% of materials plus labor. If you do not allocate overhead, you are paying it out of the profit you thought you made.
The price that impresses the client is rarely the price that pays you fairly. The honest quote is the one that protects both of you.
Markup versus margin: know the difference
This is where a lot of makers quietly underprice. Markup is the multiple on cost. Margin is the share of the final price that you keep. They are not the same number.
| Cost | Markup | Price | Margin |
|---|---|---|---|
| $1,000 | 2.0x | $2,000 | 50% |
| $1,000 | 2.5x | $2,500 | 60% |
| $1,000 | 3.0x | $3,000 | 67% |
A 2x markup sounds like a lot until you realize it is only 50% margin. After a discount, a revision, and a late-paying client, that margin can disappear quickly. Most sustainable furniture makers land between 2.0x and 2.5x markup for production work, and higher for highly bespoke or reputation-led pieces.
How to handle variations that change the price
No two pieces are the same, but the variations repeat. Size, finish, wood species, hardware, upholstery, and delivery complexity are the most common drivers. Build them into your pricing as adjustable inputs rather than one-off guesses.
- Size: Use a square-foot or board-foot multiplier tied to your material and labor rates. A bigger table is not just more wood; it is more finishing, more sanding, and more handling.
- Finish: Oil, lacquer, wax, and paint each carry a different material cost and labor time. List them as options with fixed add-ons.
- Hardware: Hinges, drawer slides, and pulls can swing the cost by hundreds of dollars. Quote the exact hardware or a range, not “standard.”
- Delivery and installation: Charge separately for anything beyond dropping the piece at the curb. Your time in a van is shop time you are not building.
A simple quote template that works
A good quote is a contract in disguise. It should be clear enough that a client can say yes, and detailed enough that you can defend the number if they ask later. Here is a structure you can reuse.
- Description: what is being built, with dimensions, materials, and finish.
- Cost breakdown: materials, labor, overhead, subtotal.
- Markup and final price: show the math or keep it simple — but know the math yourself.
- Deposit: percentage and amount, plus when it becomes non-refundable.
- Payment schedule: deposit, progress payment if any, balance before delivery.
- Ready-by estimate: a week range, not a single day, unless you are certain.
- Change order terms: what happens if the spec changes after the deposit.
When to revise the price mid-project
A price should only change if the spec changes. The most common traps are scope creep, material price increases, and discovery work after the deposit. Each of these needs a rule, not a mood.
- Client changes the spec: new quote, paid in full before the change is made.
- Material cost rises after the quote: build a price-validity window into your quote — typically 14–30 days — so you are not locked into old lumber prices.
- Unexpected site conditions: charge for site visits, measuring, and installation separately, and quote after the visit, not before.
Track the price against the real result
The best pricing system gets better over time. After each job, compare the quoted cost to the actual cost. If your labor estimate was 20% low on three consecutive pieces, the problem is not the clients — it is your hourly assumption.
This is where a lot of furniture makers stop. They price the next job the same way and hope the numbers improve. The ones who build a real business keep a running record: estimated materials, actual materials, estimated hours, actual hours, and final margin. That record becomes the foundation for every future quote.
Track every quote's cost, deposit and margin, and stop guessing what it earned.
See how it worksFAQ
How much markup should I put on custom furniture?
Most independent furniture makers use a 2.0x to 2.5x markup on materials-plus-labor cost, which translates to a 50–60% margin. If your work is highly bespoke, your reputation is strong, or lead times are long, you can move toward 3x. Below 1.8x and you are likely paying yourself less than you think once overhead and missed hours are included.
Should I charge for design time separately or build it into the piece?
Build it into the piece for simple variations; charge separately for extensive design work, revisions, renderings, or site visits. If a client asks for three versions of a table before committing, that design time is a separate service, not a courtesy. Either way, make the line item visible so the value is recognized.
How do I handle price changes when the client changes the spec?
Use a written change-order rule: any change after materials are ordered or production has started is quoted separately and paid in full before work resumes. The rule should be in your initial quote, not introduced mid-project. This protects both the margin and the relationship.
What is the difference between markup and margin in furniture pricing?
Markup is the multiple you apply to your cost. Margin is the share of the final price that is profit. A 2x markup equals a 50% margin. A 60% margin requires a 2.5x markup. Most makers talk in markup; accountants and cash flow talk in margin. Know both.
Do I include sales tax or VAT in the quoted price?
That depends on your market and your settings. In the US, quotes are often shown as subtotal plus tax. In many European countries, consumer-facing prices are quoted inclusive of VAT. Be explicit either way, and make sure your margin calculation is based on the pre-tax revenue.