How much do joiners charge in the UK? REALITY CHECK if you want this workshop!

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A little while ago I ran a poll on this channel asking how much you charge per hour if you're self employed and run a successful business. The results were interesting and inspired this video! Let's take a look at what it costs to run a typical small and large commercial joinery workshop in the UK and how much you need to be charging customers to pay your bills and earn a living. Obviously this is a very high level view of things just using very approximate figures - I've tried not to over inflate the running costs while keeping things as realistic as possible. The main aim of this is to make sure you do the maths and KNOW YOUR NUMBERS before committing to overheads that might destroy your business. I'm still seeing folk vastly under charging and wondering why they're always broke. There's a market out there - just make sure you're charging enough for your hard work. The spreadsheet discussed is now available via membership of my Small Business Toolbox site here: smallbusinesstoolbox.uk/hourl...
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If you can't be bothered watching the video (and if you consider a 25 minute investment of your time to avoid potential bankruptcy too much, then I'd suggest you don't set up in business, ever) and want to cut to the chase, in my opinion:
£30/hr - bare minimum any self employed person should be charging
£31/hr - enough for the smaller workshop AND minimum wage
£49/hr - enough for the smaller workshop AND average wage
£63/hr - enough for the bigger workshop AND minimum wage
£80/hr - enough for the bigger workshop AND average wage
Remember I'm not talking about subcontractors who generally don't have to actively win business. Smaller unit is approx 500 sq ft. Bigger unit is 2500 sq ft. Average wage based on £36k pa gross = approx £28k pa take home. Minimum wage based on £8.21/hr (25+) = approx £16k pa gross = approx £14.2k pa take home. Obviously with the larger unit you'd be well in excess of the VAT threshold so you'd have to cater for this too. Haven't covered VAT at all, just to keep things as simple as possible.
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#Woodworking #Workshop #Joinery

Опубликовано:

22 авг 2019

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Комментарии : 410

@GosforthHandyman 4 года назад

Hey folks, a few people have asked - absolutely PLEASE feel free to share this vid with your customers! 👍 Just click the 'share' link above or give them this URL:

@bobdunn1777 4 года назад

I've operated a painting business and a handyman business. My best advise: don't work cheap walk away. Once you start working cheap there is no way back.

@andyfunke9484 4 года назад

I've been doing woodwork, cabinetry, finish carpentry and furniture building, for just over five decades. I'm probably a little too obsessed with all things carpentry.

@TheAudiostud 4 года назад

GOOD WORK AIN'T CHEAP

@derekwilliamson5442 4 года назад

Andy, I am reminded of a well used expression when I was working. The sweet taste of a cheap price up front is long forgotten when the bitterness of poor quality bites. Never a truer word spoken I think. Great vid btw.

@David-xu3yk 4 года назад

This has been the biggest eye opener for me. Thanks for sharing your knowledge here and on your other channel

@robbristow 4 года назад

Hi Andy, While this was quite a few years ago I took over a business which gave quotes for free. I was told that the customers would not accept a charge being made. I made a charge with the caveat that the cost would be discounted if they confirmed the quote (which, while not itemised, was always allowed for in the quote) and went ahead with the work. It took a while, as my evaluations and quotes were very detailed. Eventually my customer base started to build and referrals became my main source of customer growth. In the end I stopped advertising and worked directly with existing clients and those that came by referral. The mantra if you do a good job 1 or 2 people may be told, if you do a bad job 10+ people will be told! To build a business takes time. Incidentally I also built in a 10% discount if the account was settled in full within 7 days. My monthly outstanding accounts were about 1% of turnover of which 75% was less than 7 days most of the rest were on agreed, interest free, payment schemes. Debts which ended up being written off were less then 0.2% of turnover ( and I never did a repeat job with this group of clients)

@PaulWoodJatobaFilms 4 года назад

Great video Andy, I went through the same process a few years ago and was amazed at the results- especially when you calculate down time. Keep up the good work!

@marccole2825 4 года назад

Fantastic video Andy, honestly it has really opened my eyes. I'm a self employed gardener, but I do make/build "stuff" from reclaimed materials in my spare time. Like many self employed people I vastly under charge for my time & expertise, your videos/channels really have helped me to refocus on my business plan and how I can move my business into a more sustainable one, hopefully giving me more time with my family. Thank you Andy.

@mc-yt2rc 4 года назад

What a fantastic insight, really puts being a one man band into perspective!!! Thank you for making these vids.

@FixingFurniture 4 года назад

Great content Andy. I repair furniture in Canada and have learned some of these lessons too. I applaud you for sharing your knowledge of business costs to help those aspiring to run a successful woodworking business. Scott

@chazzer56 4 года назад

This video and your followup video are quite possibly the most important woodworking vids I've seen on RU-vid, and there wasn't even a speck of sawdust raised in either. Thanks Andy for compiling this information and conveying it so clearly. I have been frustrated by the crazy cheap prices some people expect carpenters to do work for for quite some time. This kind of thinking will hopefully help to change things for the better for many tradesmen!

@videogalore 4 года назад

Really interesting, thank you. I'm self employed, but in a different industry, so it's interesting to see this laid out like this. As you say, you were certainly optimistic on some elements, like the accountant and marketing remaining the same for the larger unit, but you were very transparent in stating these points out so well done - there was a lot to cover!

@woodshop7487 4 года назад

Fascinating Andy. Thank you for this. That big workshop was beautiful... the stuff of dreams.

@jeremybaker2420 4 года назад

Superb explanation into the real costings of running a business. I have used a similar method over the years but this is much more effective. Well done and thank you for sharing the information

@chrisb4009 4 года назад

The depressing thing is most customers don’t know (or don’t care) the difference between shockingly bad work and first rate work.

@Lips006 4 года назад

Thanks so much for making this video; really insightful, especially to someone like me who is only just getting into carpentry on a part-time basis.

@BespoakinteriorsUk 4 года назад

Fantastic video, thank you for this insight... I only wish I had seen it four years ago! I'd say you were quite conservative with some of the costs involved with the workshop setups but it goes to show just what you do need to charge even in a "worst case scenario" calculation. I'm off to download your spreadsheet and have a play. Thanks for making a great video!

@RS-bt7gx 4 года назад

Great video mate, so helpful. I don’t work as a tradesperson but I work in the manufacturing industry where we have a wood lining section. Customers really don’t realise the running cost, time, and effort goes into making a product.

@michaelkelly3356 4 года назад

Its an eye opener. Peter Millard did a costing on a recent job he did and I was taken aback at what he charged until he explained the priceing. It was an education and one the general population need, to appricate the cost of business.