Charging For Custom Orders

[RStevenson]

Hello all, If my customers ask for a custom design of one of my products, (eg wallet) and I have to alter my pattern etc how much extra should I charge? What about if the leather has to be ordered?

[NVLeatherWorx]

The majority of my sales are custom orders and when a customer asks me to put together a quote I include every little step that is taken to design the item (which includes time required to modify an existing version that I have on the shelf), materials (which includes any waste that may exist), fabrication labor, and anything else that goes into making the finished product. Everyone will have their own way of determining their labor rate (and most are low) but if you have experience, skill, etc. that has been obtained over time then you deserve more than the typical $10 to $15 per hour that I see many charging. Add it all up, calculate your labor hours out, factor in for a profit (I typically set at about 40% to 50%) and then you can give them a number. The key is that if you are in this trade as a business person then charge that way; if you are doing it just as a quasi-hobby then low-ball your prices and have fun.

To give you an example: a standard billfold that I make (all veg-tan cowhide, nothing else) with 4 card pockets, 2 large pockets, and a currency compartment that is hand-stitched (saddle stitched) and has nothing on it except a basic dye/stain and finish, adorned with my Maker's Mark starts at about $80. I have some that are already made and on the rack for cash and carry sales; they also function as the display line for the customer to ask that key question about what else can be done to them or to discuss their personal custom order needs. With the base price already figured out I can now quick quote for them what the final price would be once I have their desired specifications. I add the cost of lace (including waste, profit, etc.) and the time to do the lacing (labor x rate + profit), and any other labor or materials that may be required (following my model); now the base price is added to the extra stuff and there you go. There are some who blink but when you want me to do some extra stuff that is going to involve more materials and an additional 5 to 7 hours then you are going to pay for it; doesn't make sense to give this extra stuff away (yet so many do) if you are in this as a business. Doesn't matter if you do it as a hobby crafter; you aren't in it for the money anyway.

Good luck with your quest for information on this and maybe you can share with us what you end up doing.

Have a great day.

[mlapaglia]

There is no set answer. You have to consider the following.

You can have a flat rate custom charge or you can decide what your time is worth and bill by the hour for the extra time it takes you or you can pick a number out of the air because you feel guilty charging what it should cost.

Example.

Pancake holster. you charge $75.00

Custom pancake holster, Customer wants a retention strap added and pull the Dot snaps instead of belt slots.

Your flat rate charge is $100 so your charge $175.00

You time per hour is $35.00. It takes 5 hours to change the pattern and make the holster. So $75 base + 5 hrs X $35.00 = $250.00

You feel guilty because the cost is seems so high that you decide to charge the guy $125.00.

This job takes you 5 hours. Normal holster takes 2 hours. The price of the materials and parts are not considered in this concept and should be added in to the price. Time is figured actual time you spend on project.

All numbers are made up for these examples. You have to decide what your market will bear. Chances are if its a good customer you would pick the third option or even no increase because this guy brings you a lot of business.

Did I help or just confuse you?

Edited August 10, 2015 by mlapaglia

[RStevenson]

My customer wants my basic bifold which I sell for $70 but wants to change the pattern completely squaring some corners and altering the card slot pockets etc. I think I'm going to charge $70+30(2hrs) for the time to alter the pattern and time spent emailing and discussing the design.

[keplerts]

Most work I do is custom work. I had a customer want a Bushcraft style knife sheath made for his new knife. I have never made that style before. Should I have charged him for the time spent designing and making the pattern? I had about $17 in materials and charged him $25 labor for a total of $42. Which seems like a reasonable amount for a sheath. With design and making the sheath I have 4 - 5 hours in it. Even at $25 an hour $125 seems to expensive for a sheath. But I believe my time was worth that. I guess I fell into the "I feel guilty for charging so much" catagory that was mentioned above and pull a number out of thin air.

I guess I'm afraid of charging too much and not getting the business or experience of making stuff.

How much would/should one charge for something like this. What would you all charge???

[BAD HIDE]

Most work I do is custom work. I had a customer want a Bushcraft style knife sheath made for his new knife. I have never made that style before. Should I have charged him for the time spent designing and making the pattern? I had about $17 in materials and charged him $25 labor for a total of $42. Which seems like a reasonable amount for a sheath. With design and making the sheath I have 4 - 5 hours in it. Even at $25 an hour $125 seems to expensive for a sheath. But I believe my time was worth that. I guess I fell into the "I feel guilty for charging so much" catagory that was mentioned above and pull a number out of thin air.

I guess I'm afraid of charging too much and not getting the business or experience of making stuff.

How much would/should one charge for something like this. What would you all charge???

It all comes down to getting paid right now vs. getting paid in the future. Is that sheath design something that you could sell someone else? Is there some new technique you learned that will improve current product or inspire new designs? Is he going to send others your way that won't even blink at $125 sheaths? Then sleep comfortably knowing it was worth it in the long run.

Custom orders can waste a lot of time, but it also can turn into a very productive challenge that breaks you out of the daily grind. If you find yourself doing a lot of custom orders like this, you'll have to re-evaluate that time wasted and charge more to match the earning potential of non-custom orders.

[JLSleather]

"Custom" is misused to no end. I've seen pricing all over the scale. And I've seen "reasons" for pricing that struck me as anything from absolutely correct to basically insane.

I had a guy take two colored pieces of leather ($12), stitch together - edge- burnish, and list it for sale at $100. It's a piece of light brown leather, with stitches. Punch a couple holes, and call it a guitar strap, and tell a neato story about how it was hand stitched uphill both ways. Well, okay.. if someone is willing to give you that, no difference to me. But you charge that because you decided to. Just don't bitch when someone else makes a "guitar strap" from the same leather, machine stitch it, and list it for $29.99 (and someone WILL) because they get to decide what to do with theirs. And yes, it DOES throw off the scale.

I've seen belts very nicely tooled, sold for under $50, which I think is a LOT of work for $50. And I've seen a web site by people I personally think maybe are crazy. "Tooled" belt (in quotes because I'm not impressed with what they call tooling) start at like $250. Then it's 'extra' for a buckle, looks like mostly around $30 for various buckles, which I KNOW I can get for under $10 each. Dye the background is extra. Stain the belt is extra.. Blahblahblah... and soon you have a $450-500 "tooled" belt (it doesn't look any better with the extra). I looked at that site SEVERAL times, I guess trying to figure out if those people are really stupid, or if they just think maybe I'M that stupid.

In the end, you'll decide what you want to charge, and people will decide what they want to pay. I don't pay ANYBODY based on time. I look at the article I'm getting - and decide if it's worth the price or not. If things were priced by TIME, then the SLOW guy would earn more, which is ridiculous -- I don't offer a REWARD for being slow.

Further compound that with those 'marketing' sensitive boogers who run around telling the naive that if you RAISE the prices, then people will think it's worth more. ANd further complicate it by the fact that there really ARE some people who will think that. Fortunately, I'm not sucked into all that. When I get people say ;; "Hey, yer stuff looks nice -- how come it's $20 LESS than this, or that" I basically give them a slightly diplomatic version of 'ya kaint fix stupid".

I can't set that other guy's price, and I don't let it concern me.

Michael specifically mentioned holsters, so using those as an example..

I know that a pancake holster for most semi-autos will use about 1 foot of leather (some a bit more, some a bit less). Using the VERY BEST vegetable tanned leathers (including shipping charges for the hide and cutting waste), couple snaps, bit of dye/finish, and some thread, that STILL under $20, and many holsters would cost half of that to make.

Say one guy sit down at the bench, work up a shape he likes (give it a fancy name if you feel the need, but that's all it is.. a shape), and prices the finished holster at $100. He went through 3 pencils and a whole eraser. Took him 6 hours.

Next guy spends a few bucks for that guy's pattern, sits at the bench, makes a holster the same design. Prices the holster at $100 because he sees what the other guy charges. Took him 2.5 hours. Holster looks nice and fits good.

Another guy buys leather already dyed, clicks the parts out in seconds, glue and stitch with a monster machine. Prices the holster at $82, because he sees others at $100, and he wants attention. Takes him an hour. Holster looks nice and fits good.

And the last guy buys leather already dyed, clicks the parts out in seconds, glue and stitch with a monster machine. Prices the holster at $39, simply because he CAN. He knows he's only being paid $20 for that holster, and after he pays for the electricity for the machine and the shop rag to clean up the dye and finish, he only "makes" $10 each. BUT, he does the math and knows he can sell 1000 of em a month (which is 6 figure income, just for doing a simple thing over and over). Holster looks nice and fits good.

Which would YOU buy?

[cgleathercraft]

Which would YOU buy?

Well I'd just make my own

Someone had to say it! lol

All joking aside I think your dead on. Replace leather with any other product and it works out the same there as well.