What should I charge? How many times has each of us been asked that question by a new leather worker?
My first reaction to that question is to ask, “Are you sure that your work is up to a standard that people will want to spend perfectly good money for it?” There are many facets to leatherwork, tooling, lacing, sewing, dying, antiquing and final finish. All of these must be of a professional quality. In other words don’t try to sell the first thing you make!
I’ve been reluctant to tackle the “how much” question because it will mean admitting the many business mistakes I made over the seven years of making motorcycle seats. First and foremost I never charged enough. But then I had a “real” job and I wasn’t depending on my leatherwork to feed my family.
If you have been to my website (theobaldleather.com) you will see that I charged $400 to $500 for my seats. Now here comes the first mistake. I always wanted to make the BEST POSSIBLE seats. That meant I used Wickett and Graig Leather trimmed double shoulders instead of the cheap stuff, I laced all my seats with kangaroo lace; it’s at least ten times stronger than calf skin lace. If I’d used cheaper materials, I could have made a LOT more money but I wouldn’t have liked the seats as much nor would I have had the satisfaction of making the best that I could do.
Having admitted all that, here is my breakdown of expenses per seat.
Seat pan………………….$65
Leather…………………...$100
Lace………………………$150
Finish products………….$10
Total………………………$320
Yes, the costs are high, I could have saved a lot of money with cheap leather and cheap lace.
For this seat I charged $500…..sometimes. Ok, here is another mistake. I’m a softie for our military. If a customer said, “I was in Iraq”, the price was $400. If they said, “I’m a police officer or retired firefighter”…….$400. Remember, I wasn’t using this money to feed my family…… So here I was spending $320 to make a seat and charging $80 for 30 to 35 hours of work. That’s a bad business plan! But, believe me when I say that I don’t regret anything when it comes to our military and first responders.
I was told many times, by various people that I should be charging more, a lot more. $600, $700 even $800 a seat. And they were correct in order to make it a thriving enterprise those would have been the correct prices. I kept thinking “yeah, but this is Ohio, maybe if I lived in California I could charge that much.”
So the lesson to take from this is to set a dollars per hour fee, keep it reasonable and stick with it. If you decide to charge someone less, go ahead and do it, it’s your business after all. You can charge what you want.
If you are going to give discounts to certain groups, advertise that on your site. Let everyone know about it so no one feels like they paid too much…… yeah, that’s another mistake. I never put my discounts for military on my site. But keep your dealings with other customers to yourself, it is no one else’s business what you charged Joe Smith. Instead of justifying your discount to a customer, just show them your price breakdown let them know they still got a good deal. Heck, I even made seats for free for some folks just because they were friends. And I mean really for free, I ate that $320 per seat and found it was not too tasty.
So here’s the deal. Figure out your price breakdown. Know how much you need to make per hour. From there it is a simple time and materials invoice.
Final advice, work hard and be your own worst critic.
Good luck,
Dave Theobald