Hi all, this has been a question I have been kicking around for some time. I have clients lining up for my builds, that makes me think I am not charging enough, yet when I look at ebay it seems that they can't seem to give a decent build away. The first build I sold was for $60. I didn't make too much at all, but I learned a ton so I considered it part of my learning curve. As my builds got nicer I raised to $90, then $100, then $125, and my last I let go for $150 and the guy couldn't say yes fast enough.
So that has me wondering, "how do you guys price your wares?" I am not trying to get greedy, this isn't my job and I don't count on the income, but at the rate I am going I will never get caught up on orders. Seems for every one I build, I get two more orders. (I know, I know, good problem to have) That makes me think that I am undershooting myself and not maximizing my return, but on the other hand, part of me feels guilty asking so much when they could shop around and find a cbg of equal quality for half as much.
Do you guys use any specific formula to assign a value? At charging a flat rate, some builds have better quality parts, do I charge more for those builds? Or less for the more standard, "cheaper" builds? I have been mulling over it for a while, and I am thinking of asking twice the cost of parts and materials (actual cost + tax + shipping + gas + time) and then adding $100 for build labor.
What are you opinions?
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One more idea.. Maybe a problem with selling online eBay etc is you're selling to someone who searched 'cigar box guitar' ie is aware of them, knows how cheap some guys do em for... The guys who will pay decent dollars have never seen one before. They see it and it's like when you saw your first one, remember that? Omg I gotta have it how much? Those are the guys I'd wanna be selling to if I was you. Go to a busy spot like a railway station and play while a few hundred people walk past. If five or six don't wanna talk to you about it you need more practice, you're not playing good enuff. Good luck
I often look at what value others sell for on Ebay when its time to list a guitar.
Smaller simple guitars with plain paper covered box ( Romeo&Juliette) usually start at $70 and sell for around $110-130.Though I did strike gold once in a bidding war and one sold for $295...
Better Quality boxes, pick ups etc, I start around the $150 mark sell upward to $200+
you will never get a good hourly rate to get paid at these prices but i enjoy the build and getting more people playing music for fun of it all..
To be honest, i've only ever charged $90.00 for an acoustic and $100.00 for a Piezo Electric...but my 'market' is mostly my co-workers and thier families(particularly Birthdays/holidays). They pick out the box or boxes they want, give me a little input on the result(stick-over or stick-through, electric or acoustic, any 'must-haves' etc) and then let me improvise the rest and trust me with the results...with my lack of spare time and limited tools i'm averaging about two decent instruments a month and that suits me just fine. I've also given away a few as Christmas presents.
Now if I were to get an actual market going, i'd definitely increase the price of my toys as i'm not even recouping Minimum wage here-but for now i'm okay with increasing my skills as I go and having a hobby that not only doesn't cost me money but that paid my Electric Bill seven months in a row....
You know, it is amazing me how much alike I am with alot of you! Lol! 95% of my customers are co-workers, and when I first started, I thought $100 would be the best I could ask. Gave away my first, $60 for my second, $90 for my third, then everyone started lining up drooling all over. (I am still in awe at how many show so much interest) My quality had improved over the first three, so I made the jump to $100 and some even tried to pay in advance (I would not accept). I let them choose each and every option they want and accept creative freedom when they are undecided. For each one I would sell, two more co-workers would order, and my quality was getting even better (I am somewhat of a "perfectionist" so to speak. I have a hard time saying "good enough") so I went to $125, as I was also using better parts than earlier builds. They still kept coming. I thought I would finally build myself a nice one, 4 stringer w/ a pre amp/EQ. Played it for a weekend before I was offered $150, I figure I can make another. Just sold an order tonight for $125, he was so pleased he made me take another $25. He insisted. Now I am where my new hobby has paid for itself, including buying every single tool I use and I still have 25 orders to fill. If only they threw themselves at me like this when I was a performing musician..... lol!
I have had numerous discussions about this with friends. It is not an easy thing to answer. You certainly want to charge what you think it is worth, but you don't want to price it too high. I don't want to have a shop full of guitars sitting there that nobody is buying, even if I think they are priced appropriately. It boils down to that old axiom, "it is only worth what someone is willing to pay." The most I have ever sold one of my builds for was $225.00. And yes, it was probably way too low a price. But again, I don't want to be sitting on a bunch of instruments because nobody is buying them.
If the price approaches what a "quality" commercial instrument would cost, then I think the expectations of the buyers increases. If I am going to charge $300-$400 for a build, I assume the buyer will expect the instrument to of high quality, and great playability. I don't think they will accept any blemishes or other minor imperfections that might come with a hand built instrument.
I think if you are in the $150-$200 range and you are making a good quality instrument, you shouldn't have any trouble selling them for that.
Yeah, that's about where I am at, around $40 in parts/materials and 10-12 hours build time. I can't complain, even if I consider electricity and heat I am still averaging minimum wage enjoying my hobby. And it is gratifying having so many people show interest and want my builds. My problem is that i try to be a perfectionist and before i know it i am spending 15+ hours trying to make it look/play/sound better, even though it is a damn fine instrument for what i am asking for them. I guess what it comes down to is that I am getting stuck in a rut. Each build is for the most part just like the last, just different boxes/hardware combinations. I have ideas that I want to tackle such as a few varieties of canjos and panjos, venture into the wonderful world of resonators, move up to high class cbg's like Smokestacks and others (LOVE my Smokestack!!) progressing up to solid bodies and if I could ever build an acoustic like the $4000 koa Taylor that I played yesterday I will die a happy man.
Good topic. I ask this a few months back myself when I was asked to build a friend a cbg.
I am finding out on the build I am doing now that costs definitely plays a part. The build I am doing now has somewhere in the $125 range in costs for parts. Then you add time, then how much profit you want to make. So far, and I have only sold 2 builds, I have let the buyer give me an offer. The first one was sold for $150 and the build cost close to $40 and had 10-15 hours of time in it. (see my photos 'mcginnis build') I thought $150 was very fair price. Now the second was a didley bow that cost under $8.00 to make and I accepted the offer from the buyer and sold for $10. I also keep in mind these are only worth what folks will pay. If you have folks that will pay an amount you are happy with, then most certainly do it. I am in this for the fun, but if I can get monies to cover parts, that is fine too.
Thank you all for the replies, opinions and insight. I think Oily sums it up pretty well, I could probably ask $200+, but when you can buy a chinese made Fender Strat w/ amp for less, I would prolly catch hell. I am about to the point that I don't care, take it or leave it, but I have already taken orders for 45 builds and I am not one to go back on my word. I almost regret taking orders, probably should have just built what I wanted to build and then worry about pricing/selling. Theres just so many other things that I am ready to try, but it is all I can do to just keep up with demand.
Replies
I often look at what value others sell for on Ebay when its time to list a guitar.
Smaller simple guitars with plain paper covered box ( Romeo&Juliette) usually start at $70 and sell for around $110-130.Though I did strike gold once in a bidding war and one sold for $295...
Better Quality boxes, pick ups etc, I start around the $150 mark sell upward to $200+
you will never get a good hourly rate to get paid at these prices but i enjoy the build and getting more people playing music for fun of it all..
this. you won't get rich making cbgs. simple 70 buck fretless sliders will sell quicker, and bring in more cash, than super complicated custom jobs.
either crank out cheaper more basic builds for easier cash, or enhance your craft and enjoyment with a more high end instrument.
i tend to mix the two - but for 200 bucks and over i would want a great looking and sounding guitar.
for $70 i would probably accept some minor playability issues etc - as long as it looks cool and sounds good.
Now if I were to get an actual market going, i'd definitely increase the price of my toys as i'm not even recouping Minimum wage here-but for now i'm okay with increasing my skills as I go and having a hobby that not only doesn't cost me money but that paid my Electric Bill seven months in a row....
I have had numerous discussions about this with friends. It is not an easy thing to answer. You certainly want to charge what you think it is worth, but you don't want to price it too high. I don't want to have a shop full of guitars sitting there that nobody is buying, even if I think they are priced appropriately. It boils down to that old axiom, "it is only worth what someone is willing to pay." The most I have ever sold one of my builds for was $225.00. And yes, it was probably way too low a price. But again, I don't want to be sitting on a bunch of instruments because nobody is buying them.
If the price approaches what a "quality" commercial instrument would cost, then I think the expectations of the buyers increases. If I am going to charge $300-$400 for a build, I assume the buyer will expect the instrument to of high quality, and great playability. I don't think they will accept any blemishes or other minor imperfections that might come with a hand built instrument.
I think if you are in the $150-$200 range and you are making a good quality instrument, you shouldn't have any trouble selling them for that.
Great answer Dan, I agree 100%
Good topic. I ask this a few months back myself when I was asked to build a friend a cbg.
I am finding out on the build I am doing now that costs definitely plays a part. The build I am doing now has somewhere in the $125 range in costs for parts. Then you add time, then how much profit you want to make. So far, and I have only sold 2 builds, I have let the buyer give me an offer. The first one was sold for $150 and the build cost close to $40 and had 10-15 hours of time in it. (see my photos 'mcginnis build') I thought $150 was very fair price. Now the second was a didley bow that cost under $8.00 to make and I accepted the offer from the buyer and sold for $10. I also keep in mind these are only worth what folks will pay. If you have folks that will pay an amount you are happy with, then most certainly do it. I am in this for the fun, but if I can get monies to cover parts, that is fine too.
Best wishes. Keep us posted.
Lonman
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