Price Point

Replies to This Discussion

Permalink Reply by Ron "Oily" Sprague on May 31, 2012 at 1:04am

Josh,

This question comes up a lot here amongst the builders. The responses tend to fall into two or three camps:

1) Charge what the traffic will bear. Charge more if you can get more. Don't undervalue yourself.
2) Once you've accounted for the cost of materials, then what you pay yourself for hourly labor rate figures pretty highly. You should pay yourself for your time what you think you should earn, somewhere between minimum wage and your day job hourly rate. Now, if you make $500 / hour as a defense attorney or surgeon, then you probably don't need the money, so common sense should rule. Then figure in a reasonable 10 percent for profit margin. All of this assumes that you actually want to turn a fun hobby into a time-suck business, or that you love doing it so much you can't help yourself.
3) if you do custom work, with exotic materials or techniques, then you should charge more for custom handiwork. Don't fool yourself that you necessarily have a rare product; many builders fall into this trap, especially trying to sell pasteboard boxes with poplar necks and maybe a piezo, which may have cost $35 in materials and 1-5 hours in time, for well over $150 on eBay. There's too many people out there with the same idea, and only a relatively few builders, such as Shane Speal, Chickenbone John, Wichita Sam, Michael S, Josh Gayou, to name some ( sorry for anyone I left out), who have well over 100 builds to their credit, and have been at this a loooong time.

Seems to me that, unless you have exotic materials / techniques in your builds, your $100 -$150 may be a good starting point. Do some research amongst the builders here and on eBay; it won't take you long to see what the price points are. Also, remember that a CBG is a DIY - after all, you managed to build one;-). The people looking at yours are looking at the kewl factor of it, but also may not realize how easy and cheap it is to do, for example, a 1-hour Uncle Crow build. You are trading on the fact that it's more convenient to have you do it for them. Most builders also try to put some kind of signature element into their builds, as these are creative extensions of their personalities; this is where you can charge extra for extras.

And when you have a cluster of 5 potential buyers around a single instrument, you can either start taking orders, or hold an impromptu auction!

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Permalink Reply by Josh Thompson on May 31, 2012 at 8:12am

Thanks, this helps out a lot.

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Permalink Reply by jabes on June 3, 2012 at 12:25pm

i agree to a point,but what point i don't know. i couldn't build a guit in 5 hours-i only built about 10 but i've kept 'em as simple as i can -flights of fancy included. i have 5 to 'sell' ,i don't mind a trade.i cannot play a tune ,just noodle about .you can buy an electriic 'clone for a £90 ..with an amp! everyone of my friends claims to be 'inspired' but only one has taken it up .(sik yeti) i need to learn to bash some kinda tune out...also i don't think you need 100 builds under your belt to produce a good instrument...

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Permalink Reply by L.J. on June 3, 2012 at 1:58pm

Jabes. Check out the videos in the how to play section. Gitty just added mine a week or so ago. They will get you started if you know nothing at all. Then there are others like Kenny lee that go much deeper.

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Permalink Reply by L.J. on June 3, 2012 at 1:59pm

This reply was for haves.

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Permalink Reply by Andy Eight Spades CBG on May 31, 2012 at 2:11am

What v he v said and I think you're in the ballpark with those prices. But if your gut tells you more as you progress, then ask for more.

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Permalink Reply by Keni Lee Burgess on May 31, 2012 at 8:58am

A simple search on Ebay will show how many builders there are selling. I would suggest a video demonstrating the quality of your instruments. A picture is worth a 1000 words, but a video speaks volumes. This can definitely be a factor in increased price point. I routinely sell guitars and having a video clearly demonstrates the product. Best Wishes on your future sales. Enjoy, Keni Lee  

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Permalink Reply by Ron "Oily" Sprague on May 31, 2012 at 10:32am

Yep, Keni's right. You really do need audio and video. As they used to say in school, it's Show and Tell. And to borrow wisdom from Shane Speal, learn to play the effing thang! Chickenbone John says the same: learn to demo your wares. People can imagine themselves playing it when they see "ordinary" you playing simple tunes on it. Or wailing like (insert favorite guitar hero here).

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Permalink Reply by Josh Thompson on May 31, 2012 at 12:16pm

Thanks for the pointers, I'll make some videos when selling them.

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Permalink Reply by John Davidson on May 31, 2012 at 1:36pm

Let's not forget playability.

I would be sorely disapointed if I bought a guitar online that I couldn't play! If it were butter in my hands then it would consider it the 'steal of the century' no matter the price.

Most of us know skilled guitar players and they can be used as a valuable resource.

Hand them a build and ask their opinion. Don't be fishing for compliments but rather put it as "There's something not quite right with this and I can't figure it out".

Their response can tell you a lot about the build. Who knows, there might be a fret buzz that you hadn't noticed or your playing style didn't bring out. Yea, it's hard when someone tells that your baby isn't perfect but...

If their response is favorable. do this with two or three more guitar players Odds are the build will probably never make it to ebay! But, if it does go to ebay, then you have a couple of 'reviews' to post along with the build's videos. I've never met a musician who didn't love to see their name in print...

John

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Permalink Reply by Lonman on May 31, 2012 at 9:28pm

Haha, yup, love this topic. . Gents here said all good things to take in. My mantra may not be the best, but it is very easy for me to determine and I do not have to deal with the devils regarding if I charged too little or charged too high. But, when I want to put a cost on a build I first consider the cost to build, then my time. My time is simply twice the amount of $$ for the build, then I ask myself, "what would I pay?". If I could see myself paying $160.00 for the wine box reso that I have for sale or paying 50.00 for a checkerbox 3 string fretless that I sold, then hell ya, I ask for the price and I either get it or don't. But this way, I feel comfortable with my decision and someone else gets to enjoy the fruits of my hobby.

I also agree that you can ask the person interested, "make me an offer?' and if you like their suggestion, then it is a win win. I did this with a nice looking cigar box didley bow that had a handmade walking stick for the neck, but really, the build only cost less than $5.00 and didn't take time at all to put together. Got $10.00 for it from a guy who wanted it for his young daughter. A win win.

It is also easier to deal with these dilemmas when this is not your only way of getting your bills paid!

Best wishes,

Lonman

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Permalink Reply by Don Barnhill on June 1, 2012 at 1:16am

Years ago when I was fledgling jeweler, I would take custom orders and often wonder what to charge? On creating one-of-a-kind pieces, the customer would usually set the price for the piece(s).

They would choose from a collection of stones then tell me what they wanted, a ring with bracelet or a pendant, etc. After telling me what they wanted and what stones they liked, I would ask them what they wanted to spend. It was always about 2-5 times the amount I was thinking.

They were always happy with a price they could name. I was always happy with the amount.

On another note, I believe CBGs need to be sold for what they are actual worth, based on skill, materials, instrument quality and time. About 2-5 times what you are thinking! LOL! I guess in time, maybe.

Good luck, it will evolve!

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