Pricing

[Lobo]

I retired nearly 7 years ago. I offered 13 different holster designs, with or without 4 common options, left-hand or right-hand, in 4 different finish colors, for about 140 different handgun models. That equates to some 80,000 possible variations. Prices ranged from mid-$50 range to $150-plus range depending on the customer's preferences. Average sale price was $78; average materials cost was $9; packaging about $1, delivery (postage) about $4. Gross profit about $64 per piece.

Always someone who wanted something else, their own design idea, a copy of someone else's design, whatever. Every week another class graduated from Holster Genius School and wanted someone to build their idea of "the perfect holster". My standard response became "$60 per hour plus materials and shop supplies". How much will that be? "I don't know, I haven't done it yet". How long will it take? "I don't know, I haven't done it yet."

Doing custom work is much different than producing products to an established and proven pattern. In my shop we completed standard production items in batches of 10 to 12 at a time, usually 35 to 50 per week, with average shop time per piece at about 47 minutes. Doing a single one-off special order piece might take 6, 8, maybe 12 hours of shop time.

General production products at $64 gross profit on 47 minutes of shop time equals $1.36 per minute ($81 per hour). Even if I had customer orders for custom products at $60 per hour plus materials and shop time I would have been losing money doing those orders (as long as I had pending orders for general production).

I charged $25 for basketweave tooling on a holster; each piece takes about 15 minutes.

My Sheridan-style floral carving artist was paid $60 per holster; I charged $90 to the customer.

Remember that these figures reflect 7 years ago. Bought my home 7 years ago for $182,000; it is now worth $340,000. Bought my truck 4 years ago for $37,000; same model now is $54,000. Gasoline was $2.20 per gallon; now it is $4.89. Good Hermann Oak veg-tanned cowhide was about $4.50 sq. ft.; now it is about $8.00.

Hell, 7 years ago I couldn't pick up $50 worth of groceries; now I do it with only one hand.

If you are doing leather work as a hobby, filling your spare time, maybe earning a little pocket money, it's all good. But if you are running a business you must balance your capacity to produce against product demand, along with overhead costs. If you are capable of producing 10 items per week and 20 potential customers want those items your price per unit will be toward the upper end of market tolerance. There is simply no reason to accept less than what the market will bear.

Since my retirement the new owners of my business have raised prices significantly, but they are still working at near their abilities to keep up with demand. More power to them!

Best regards.

[MarlinDave]

Thanks for the ideas. Several people were concerned about the grommets scuffing the stock finish. Me too. However, the laces hold the grommets away from the wood. I used the elastic butt covers forever because I had no source for a lefty leather one. 

I am retired and this is a hobby, but it would be nice to al least get materials cost back. Mostly friends who I hate to charge but probably won’t pay me anyway. I get into this in shop work too. Can lose time, use up scrap on friends projects, but I really need to get my paid parts bill back. 

[Tugadude]

On 6/9/2022 at 3:03 PM, battlemunky said:

That Colonel guy, by any chance? Nice leather but it's all machine made if so. Which is fine and has it's place but when one of those $1,800 bags that took an hour and a half to make starts falling apart, it's done. You'll have a really nice pile of leather on your hands. If it's his stuff, I expected it to all be saddle stitched for the price that's being asked.

I'd confidently sell that piece, assuming it's unlined and what we're seeing is what you're getting for $30-$60 here down the road from you. Anything crazier in the tooling department, lining, etc., and I'd add $20-$30 to either side of the range.

Good luck figuring it out. Pricing is sometimes harder than making.

Keep in mind they do offer a reasonable guarantee.  More than many offer at least.

Also, the pricing is due to the brand.  Unless or until someone creates demand they are forced to price things according to time and materials mainly.  Add the cachet of a name brand and suddenly you are able to charge much more.  Sometimes unreasonably more.  Try buying a Rolex at list price sometime.  You're not going to get the popular ones for anything close to MSRP.

[Tugadude]

On 6/9/2022 at 8:18 AM, 327fed said:

There is a kinda high end online leather place near me. Visited their showroom last month. Had plain valet trays for $60. I think that was their cheapest item. Not a line at the checkout however. Some of the online prices are really crazy. 

I wouldn't expect to see many customers in the shop.  Their business is online and robust.  People gladly pay more for the brand, the story, the hat and the moustache.  Is the valet tray worth $60.00?  Are the leather coasters worth $95.00 for a set of 4?  Not to me, but they have a market and they price according to what those folks are willing to pay.  Hey, at least they aren't low-ballers like some.

[MarlinDave]

I have bought retirement gifts for people from them. Added initials, nice gift box, first class product and packaging. They have built the brand and niche and benefited from it. Kinda like John Deere and Kubota. Both great products, one a stronger brand presence. My brand plus $1.25 gets me coffee. 

[fredk]

One thing we must remember is that these bricks & mortar shops have large overheads that need paid. Thus, a valet tray that I can make and sell would see me in good profit at £10 needs to be at least £40 in a B&M shop, because they have to pay for electricity, city taxes/rates, employees wages et cetera, which I don't have to

So, whenever we see these expensive prices, divide by 4 or 5 and see if that item is worth that, or can we make it for that or less

Edited June 11, 2022 by fredk

[keplerts]

On 6/8/2022 at 9:24 PM, 327fed said:

What would you get for one of these in your area? Need to sell something. Thanks. 

I charged a fella $75 for mine last fall.

[chuck123wapati]

here are some for sale 

https://www.brownells.com/rifle-parts/stock-parts/stock-hardware/cheek-pieces/strap-on-cheek-piece-tan-nylon-sku851000073-31707-52645.aspx

https://www.midwayusa.com/product/1015114995?pid=210241

https://www.midwayusa.com/product/1023260125?pid=360213

https://www.midwayusa.com/product/1015319564?pid=860850

Edited June 11, 2022 by chuck123wapati

[MarlinDave]

Thanks. The M1 cheek piece is a neat item I have not seen. 

[chuck123wapati]

11 minutes ago, 327fed said:

Thanks. The M1 cheek piece is a neat item I have not seen. 

 

yes it is i may make one for mine and one for my ar. lol i will have to do a two sided one as I'm a lefty.