You know, I've been going through quite a few videos these days about the woodworking business, and most workers don't want to give out even half of the information you just did. The peek behind the curtain, the statistics, the breakdown...this video was more informative and helpful than so many classes and such I've seen and taken in the past. Thank you so much for this information and the walk through your process. As I can and when I can I would love to help support you and what you do. I love your work and your humor and can't wait to see how you evolve in the future with your tables/furniture and various projects. Thank you again, Ryan!
@graidian hit it on the head. This video was one of the best I've ever seen on TH-cam for woodworking or otherwise. It hit me about 2/3 of the way into the video (somewhat embarrassed by how long this took me) that you took the same approach to this video as you do your woodwork. Thoughtful, thorough, & attention to quality. Thank you for taking the time to make this.
nobody wants to go through this level of detail because no woodworkers want to admit that there is almost no money to be made. High intensity labor and high material cost.. combined with a high cost finished product that is limited to high end clients... the juice is not worth the squeeze.. McDonalds managers make more money and do far less work.. Unfortunately.
With your attention to detail you'd likely make a lot more money being a business manger..Most people don't understand these basic principals and this is a major reason why 80% of businesses fail.. Ive come to the realization woodworking can never be profitable or sustainable for me(without youtube revenue), but its something i still love.
This is by far the most detailed behind-the-scene breakdown I've seen on this topic - and I've seen quite a few. I am not a woodworker. I have bought some tools and gathered some practice material to start woodworking as a hobby hopefully sometime soon. I loved watching the entire video and appreciate your sincerity. Thanks!
Ryan, my wife sat down as I was watching this video and commented that I must 'be in heaven' with all the woodworking and math nerdery going on. 😂 Appreciate your transparency in this video! And it goes without saying, you do great work! Thanks for the ideas for my own board-building and for the entertainment over the last few months.
My compliments on your analysis; it is the most thorough and realistic of any that I have seen on TH-cam. So many people forget many of the things that you took into consideration, which is why your assessment is indeed extremely accurate. The challenge you have is that your incremental cost per board is almost flat. In an enterprise that is more manufacturing oriented, the first board would be the most expensive, and then each incremental board would have reduced costs; and those are the ones that help create positive profit margins. You get there by increasing output through increased efficiency and reduced time per unit produced. All the problems you listed have already been solved within the industry, but they will take capital investment to put into place. Specifics: You need a widebelt sander. (NOT a drum sander; do NOT make that mistake! The frequency and difficulty of changing paper is a killer of productivity.) You need a decent planer and jointer with segmented cutting heads to eliminate blade changes. You need something called a clamp carrier (google is your friend...) and a purpose-built glue roller. (search for it under veneering tool suppliers.) A used sliding table saw would be a good idea as well... See your MTM friend's saw for its value. OK, here's an almost free one; Get a tub and immerse the boards in oil. Let physics do the job! With those tools you could produce double or more the board count in the same time as the ones you made here. Now, do you WANT to do that? A much bigger question that I can't answer for you... Best wishes with your business!
This is perhaps one of the best videos on running a business in general not just a wood working business. I grew up with self employed parents and while I work for a school many of these lessons were hard learned from them with similar considerations to be made.
Your breakdown is excellent. I've been in the photography business for 36 years (wood working is my hobby). There are so many people in both industries who don't understand that the cost of materials is just a drop in the bucket when considering costs. Everyone who wants to be in business for him or herself, in any industry, should see this.
Everyone who wants to start a crafting business should watch this video. Best overview I've seen of how it really works. Definitely not a price issue - but a cost to make issue. Have to get the labor down. But getting the labor way down without turning it into a manufacturing line is tough. Way way too much time sanding - there is a reason big shops don't sand this much. It's too expensive.
Thank you for such a detailed explanation of the reality behind the scenes of us wood workers. I cringe when I think of what I need to charge a customer but then I also remember that I can't afford to go broke to give them a special built piece either :) I pray you video pays well and will for sure be sharing this to more people. More youtube creatives should do some breakdown videos like this and I hope you inspire them to do it. Thank you again!!! Chilly
I really enjoy your videos. You helped me a lot and I just wanted to thank you. I’m a weekend woodworker and I’ve made about 20ish cutting boards. 14 months + $6k in equipment into my hobby and I love it. I do other projects but I enjoy cutting boards a lot. Keep making videos! I bet a lot more people understand how much time, money, and love go into each board now.
Good info for people who dont think of all the details and gives you specific areas for focus on to reduce expenses to increase profits. Cheap wood that takes a ton of labor to prep and hundreds in tools/supplies is not cheap wood anymore. You Need a drum sander, cheaper source of walnut, dont need to raise grain between grits to cut production time, look into indistrial clamp racks or build them, you waste too much time and energy clamping- moving to clamp another board - moving back to unclamp and clean to move again to unclamp another then move a 3rd tine for final unclamp, buy rubber feet in bulk to cust cost by more than half. Cheaper office expenses ($25/board is 3x to high or include wirh shippinf costs). Look at LEAN manufacturing to eliminate inefficient parts of the process. Split your shop and rent to someone else or rent as storage to lower overhead. Start by taking notes on Kris Devo batching 6ft boards instead of of batching 2 ft boards. TH-cam is a separate set of metrics. Outsource filming and editing so you can spend time in the shop, promote the channel to get subscribers up and get sponsors to supply newer better tools and supplies - laguna, jet, sawstop...even local hardwood dealer or online lumber suppliers
This is one of the more educational and encouraging videos SO MANY SHOULD SEE! I'm sure there are plenty of people who see peeps like you selling cutting boards for hundreds of dollars and never think about everything that goes into making them beyond our material costs. Job well done, Ryan; have a 5-er (wish I could afford more). I wish you the best of luck in your endeavors.
I've been following your videos for some time now and can empathize with your struggles. As a semi-retired woodworker at 74 I have a shop and all the equipment needed to make cutting boards myself and have been toying with the idea for about a year. I find your analysis quite sobering and really appreciate all the work you put into it. Perhaps I'll keep it a hobby for now as my desire to work 10 hour days for $10.00 per hour is somewhat diminished after 40 years in the business.
I agree with so many of these comments! Your explanations and attention to details make me feel like I could also begin making edge-grain cutting boards and sell several a month. But at $10.00 an hour +/-, maybe I should just make a few and give them away as gifts! Great job and thank you!
Hats off for your unbelievable transparency on this subject! There's so many data/metrics exposed in this video, it would be awesome to have more video done like this by other YT channels. Truly glad you made this one :) I would also suggest that you reach out to different brand and try to get some sponsorship in the form of more beefed up (industrial) tools. Table saw on its last leg? Reach out to Saw Stop/Harvey/Laguna, I'm sure they would be glad to help you out! Same for the planer... I can hear the little dewalt planer scream when boards goes in and out of it (I know I had one) :D As someone suggested, go with something that has carbide inserts, it'll pay for itself with the amount you are currently spending on planner/jointer knives. Anyway comments is getting ridiculously long... like the video ;) So keep at it, you are really inspiring to watch :D
This is the kind of data I have collected on work I have done in the past. It's amazing how many people don't count the little bits and pieces into their costs and really don't see how much overheads cut into profit. Great to see someone expressing a genuine business approach to honest numbers . Too many dreamers out there selling nonsense ideas.
I absolutely loved the detail level shared. Solid cost analysis is critical to every business, yet is too often never properly analyzed, or, even worse, flat out ignored. There are numerous takeaways, including the need to raise pricing and looking deeply into cost-cutting with efficiency gains in materials, labor, and overhead. Well done! Thank you for sharing so openly!
Wow, I had no idea the amount of time and effort and hair pulling it takes to do this. I thought I was a hard worker but my hat is off to you young man. Thanks for sharing this with us.
Thank you for this. I’m just getting into cutting and serving boards. If you invested in some additional tools, such as a CNC, larger plAnar or drum sander and perhaps a more powerful table saw, you could make your money and not have to raise your prices as much as is represented in this video. A CNC alone gets you a bunch of time back. The world needs your work!
This is such a great video, and it really makes my neardy heart happy. Far too often we undervalue our time and effort, not to mention the materials that go into the beautiful objects that we make for others simply because we haven't taken the time to break it all down. Also, customers then tend to undervalue the product as well as criticizing the selling price because they may think "they could do it for less." That can be so heartwrenching! I am only part way through the video, and am wondering how you digest the numbers for your own situation. How do you use that info to make decisions about new tool purchases, like a planer that has a wider table, or super fine cutting heads, that would simplify or make your process more eficient. At what point are you able to say "this expenditure with net this much time savings, leading to x profitability"? I love the numbers, and love how you break it do into real tangible terms. Don't forget to include your knowledge base, your education, and the value of being able to problem solve. Keep up the great work- it is beautiful and so worthwhile!
Awesome video! I'm currently working on a batch of 50 cutting boards (not end grain) and keep wondering to myself if it's even profitable. This is great information to help refine processes and be more efficient.
As someone in the woodworking business myself, the breakdown on cost was enlightening. Thank you for your thoroughness and attention to detail. Blessings on your work!
Amazingly detailed and well done video, much appreciated you posting this up. A huge planer and a sawstop are two tools I'd make the immediate upgrade to. The planer as you mentioned could cut your gluing and planing time down by a lot. A 3HP sawstop would give you a more powerful saw designed for commercial use as well as the sawstop technology in it. Making repetitive cuts is where accidents are most likely to occur since that's where you're most likely to zone out when working. I'm not sure if you have one already, but I'd strongly recommend adding a cyclone separator to your dust collection setups; both for the shop vac/sanding as well as the larger collector. The drum sander is another upgrade well worth the investment, though last time I checked those things are up there in price.
Hit the nail on the head with the honest info given in this video. I've been running a cutting board business for yrs and while we love doing what we do unfortunately we don't make much overall. Theres alot of other videos out there that make it sound like overhead/time to construct is much lower than reality. Bottom line is you really have to enjoy this work and you have to be willing to work hard at it but not expect as much in return as the typically -Make Easy Money On Cutting Board videos, those people post what most new business dreamers want to hear and they take advantage of it sadly.
Hi Ryan! I know others have already mentioned it, but this really was an excellent video. I’ve have never seen anyone come close to sharing numbers on their builds. You really opened my eyes to why woodworkers charge as much as they do for a product. When I first saw your boards I was surprised you were asking such a high price, and equally surprised that people were willing to pay this price, even though your boards are beautiful. Now that I know how much time they take to make, it makes perfect sense why woodworkers charge what they do. As I watched your video, I was thinking a drum sander and wide planner would save you time, but wonder if you can save some cost by buying the 55 gallon barrels of glue Titebond sells. Is it possible, or even feasible to buy sandpaper and saw blades in bulk from Freud/Diablo or 3M? Would it be cheaper to buy high priced saw blades that can be sharpened several times? Let these companies know you have a TH-cam channel and they might give you a break on the costs, give it to you free, or even sponsor your channel. You never know until you ask. I also also thought about a CNC which could face the boards, cut the groove and handles at the same time, but not sure how much time you’d really save given the time it would take to set up each board, flip it and face the opposite side. At the end of the day, you should ask yourself if you’d rather make $18-20 some dollars per hour, plus whatever you get from TH-cam, or would you rather flip burgers for the same wage? I truly hope you will continue to grow both businesses.
Glad you enjoyed it! I thought 55 gallon was a typo and that you meant 5 gallon but then I googled it and I learned something new today. If I had the cash flow to purchase nearly $3K in glue, I'd likely do it. I definitely plan to buy some 3M sandpaper in bulk and am looking at switching blade brands once my current blades wear out. Re: tool companies, sponsors, etc - I've got some things in the works ;)
What a cost / profit breakdown!!!! The time and effort to document, video & edit this alone is amazing. I don't do what you do but i can apply this method to my wood-resin casting world easy enough. A HUGE thank you for putting into perspective a subject i'm sure many of us think about but don't apply to it's fullest. Thank you very much sir.
Great video! Appreciate the detail and stepping through the methodology to break it all down. I hope this one goes viral and gets you closer to that well deserved $40/hr!
Thanks for the video. Your experience is exactly why I have decided to keep my hobby a hobby. My free time is far more valuable than the 💵. I also enjoy the expression on the peoples faces I give gifts to.
I’m only through the brick board build and costing and am very impressed with your detailed breakdown. I wonder if the “inexpensive” oak didn’t end up costing you more than lumberyard oak, given the labor, blades, sanding materials, etc involved with it.
I just told my wife I was going to make cutting boards for all the family for Christmas. Based on your numbers, I just saved myself far more time than I have available. $5 does not seem like thanks enough. Love what you, and hope you get those machines.
Great video Ryan, it’s absolutely obvious you love what you do and create in your shop! I’m really glad I purchased an amazing board from you last year. It’s awesome and it’s used often, waxed and buffed between using it!🤩👍🏽
Thanks Ryan, this really breaks down the profits earned and the hours it takes to produce woodcrafts. I used to wholesale my products, but at the end of the day, it was the same amount of hours for half the cost. I think one big order, I made less than $2/hr. Lessons learned!
Great show, good teaching experience 👏 I would like to make a couple of suggestions, edit this down into 4 or 5 separate videos with a common title and number them 1-4 or 5. More people would be apt to watch a 15-minute video over one that runs 1:17:12. The other suggestion is to offer the edited videos on patreon or offer as a sold course.
nice video . I sell and build boards for 10 Years now.. your absolute right in your calcs, in my first year i was on this 10 € / hour gap. then i invested alot in sanding machines, drum sanders, and heavy planers, now i am over 70 € / hour... Machines rock.. thx for your video.. :)
Hi Ryan, having a drum sander would have saved you some more time on the orbital sanding too. Also, you have no margin for the risk of flaws in % of the boards you made, that could cost you some more time and expenses to repair or replace. Overall, I've learned a lot with this great video!
Great video Ryan! I just recently started an LLC and have sold a few boards…mostly to family. After watching your video I can see I did that at an extreme loss. At about the half way mark of your video I started feeling discouraged, but at least now(and early on in my journey) I have your detailed knowledge to learn with. Im now leaving excited and confident to charge what my heart is telling me to ask for and not feel guilty about it! I also have a guide to billing no matter where the craft takes me. Thank you sir I hope you hit 1.8 million and beyond.
I feel bad for you. To bad some of the things we are passionate about,are simply hard to turn a profit. I made a bunch of fairly simple cutting boards/bread Boards and sold them for 40.00. I was in hobby lobby one day, and they had boards almost identical to mine..for 13.00. Made in another country,shipped across the ocean,distributed them to our retail stores ,sold them for 1300 and made a profit at that price. Long story short,I’m done making bread boards. Gonna be passionate about something else 😋. Thanks for sharing your story.
Totally! I also started to make cutting boards at the outset of my woodworking hobby business. I also have changed my model to making custom furniture pieces. Do I make money? Nope. I love creating, and in the end, if I can make it for cost plus a small amount so be it. Cheap imports, and the world getting used to the Walmart influence has killed small business. What used to be an area to artistically create and produce unique pieces has turned into, “ but I can buy something similar at Walmart , or Etsy for….”. There’s a reason profesional woodworkers turn to TH-cam to supplement their income. It’s sad, but and a reality.
This video is mental! The breakdown is phenomenal. It looks like its stressful. Alot of work. People here in Ireland simply wouldn't pay that amount of money for these boards. Good for you!
Your "only table" caught my eye and I clicked on it. I am a retired carpenter and all that I could think of was that you must have another source of income. Then, the algorithm offered me this and I had to look. I did NOT need all of this info enough to spend this much time watching but your honesty and transparency were therapeutic. It is what I try to offer the world and it breaks my heart that so many people think that deception and privacy will bring them happiness. Do not underestimate the healing power that you are having on this world by being who you are. I promise you that if you keep the faith and enthusiasm, the world will thank you by gifting you with happiness, and taking care of you so that you can keep giving the gift that the world needs to unlock the joy and wisdom within other people's hearts.
I did antique restoration back in the 70s & 80s ( third generation woodworker). As I followed you through your whiteboard presentation, the point my heart ached for you was when you revealed a $16/hr wage for yourself. Back in the day, 40-50 years ago, we charged out our work at $16/hr. I know you're not in your comfort zone yet (hrly), however, your work is worth far more than you are charging. I hope your exquisite work will cause customers to beat a path to your door. It doesn't just apply to a better mousetrap. Wishing you good fortune from now on, Ryan.
Ok. WOW! I actually made it through the entire video! I'm proud of myself just for that. This was one of the best if not, the best breakdown videos I've ever watched. Your cutting boards are amazing and you should be making much more for your talent and effort. That being said, your love of the work you do is very important and sometimes making $40. an hour may seem less important. I know this video is at least a year old now and your latest videos do show some of the equipment you stated would help to get you closer to that $40/hr goal. I had often thought about making items like these and you just changed my mind. Thank you for that. I have a career and I'm literally 3 years from retirement. I make just over $40/hr and have a fairly stress-free job. But the difference is that I've never liked what I do. For over 35 years I've worked in the same manufacturing industry in one small plant. I've moved from job to job within the same company for decades and never really cared for what I do. 😂 My most recent position is just ok and it's pretty much stress-free. I always tell my newer coworkers when asked if I like what I'm doing that out of all of the positions I've hated here, this is the one I hate the least. 😂 So, even though surviving and feeding the kids is important, it's equally important to love what you're doing and I admire you for that. Thanks for sharing this and your amazing talents.
I got into this via random feed recommendation, and I must say, this is not only one of the best primers on pricing around, but also for process optimization. Great work.
I appreciate what you have done with this video. Transparency is something most people are unable to do. That being said, I feel like there are a few things that you are doing that are costing you time. You speak of MTM and I think he is probably the GURU of boards, at least on TH-cam. I watched his two videos on how to make a cutting board. Generically. He never glues both sides of his pieces. He never unclamps and scrapes the excess glue off and then re clamps. This takes time and it's not necessary. Some of the boards take several glue-ups, so every time you do that, it's lost time and lost money Secondly, get a 20" thickness planer so you don't have to do glue-ups that fit your 13" planer. Purchase or build a drum sander. Get the best random orbital sanding pads you can find and don't over use them. When they are done, throw them away. The hardest thing you may need to do is move out of the big space and get your overhead down to where it isn't costing you an arm and a leg. I would kill for that much space, but if it's eating you up, you probably need to give it up or ramp up with a helper so you can get enough production to offset the cost of the facility. All that being said, you do great work with very nice quality. Good luck with your business!
My dad was a woodworker. Garage shop, worked endless hours nothing. I like the way you break down expenses. Most people have no idea what they are getting themselves into. Woodworking is a tuff industry
Wow Ryan, a big reality check on the cost. Like some of the other comments on here, most woodworkers don’t show the info you’ve provided. Hope the endless viewing of your videos helps towards providing more income.
I see on a lot of the Woodworking Facebook groups, people always asking what to charge for their work. I'm going to point them to this video. It takes into account so many things other people don't consider, but should. Thanks for sharing. And nice work on the boards
Great info on numbers here! I have my Spreadsheet Locked and loaded. Change any variable and all the important numbers to watch will update with proper formulas. Thanks a million for taking the time to break this down.
This was a great...very great video. I started this woodworking hobby to have something to do after 37+ years in the Fire department and the same in US Army Reserve (7 overseas deployments). I never expected it to become a way to make money. I went to an engineering high school (Baltimore Polytechnic Insitute), woodworking just seemed to be the right thing to have as hobby for me. I did an inventory of all the tools I have. I'm well over $35,000. They are not all the number 1 or best tools, but what works for me per my ability, safety and pocket. Some of them are garden tools (lawn mower, trimer etc.) some are machine tools for car repair (floor jack, engine lift, socket set, etc.). But a good portion of 35K, are woodworking tools. (3hp Sawstop table saw, drum sander, Dust Right, Ridgid tools, etc.) So, for me there would be an additional cost to calculate. And I would need to also include the books a magazines and classes. I do want to make some of the things I have seen on your many videos, but I did not start this until about 6 years ago. I'm not at the level to be selling too many things yet. So, for right now I think I need to keep it as a hobby and maybe an occasional money maker. Please keep doing what you do!
Ryan, after your in-depth disclosures, it appears that you have taken the cutting board train to the end of the line, both creatively and monetarily. Furniture making would provide a more lucrative niche market that would allow no less creativity and skill than you have already demonstrated, while providng more satisfaction from increased revenue. You have a devoted following. Your work is highly esteemed. Capitalize on these accomplishments. It will benefit your understanding and supportive wife, and the future of your young child, while you open yourself to an expanded woodworking universe. Patience and perseverence, two attributes which you already possess, will serve you well in your future endeavors. Your communication skills are first-rate, and your clear-eyed assessment of your craft provides you with credibility. I see no reason why your career couldn't parallel that of Sam Maloof. Best wishes.
Excellent info. I completed my first (and last) end grain butcher block in 1981 with just basic hand power tools, sanding took forever and I decided to never do that again. I am glad you included the portion on the time to video. While I have never actually timed it, I have always felt that creating a video at the very least, doubled the amount of time it took to complete a project. Steve
There is a gorgeous worksheet for pricing future projects buried in this video that someone is going to pull out and publish, and when they do I hope they give you proper credit. Was the info daunting as someone trying to stick a foot into the business? Absolutely. Was it discouraging? With how well you broke things down, not at all; it was empowering to be able to walk into this with eyes wider open. The "thanks" will be coming when I'm able, but a real thank you for this lesson right now.
And people wonder why handmade custom woodworking items cost so much....Great video! I always find it amazing to see people's reaction when you give them a cost for an item you make...For instance Charcuterie boards....I tell someone $75 for a 12.5"x29" all hardwood charcuterie board and they look at me like I'm crazy...And that's probably not even $10 dollars an hour to complete...People don't think about the sand paper, Finishing oil, Bees wax, Sourcing and picking up the wood ( I routinely drive 3-4 hours round trip to pickup hardwood) Then there's the cost of the wood (that seems to keep going up), The glue, the glue applicators, the equipment cost and then wear and tear on that equipment, oh and then the electricity to run the shop....The costs are endless! Thank you for sharing this for us woodworkers out there! Love your work!
WOW what an amazing video. Your woodworking skills have to take a backseat to your analytical skills. Keeping it REAL. All of us watching have a passion for woodworking but turning that into profit is not an easy task as you soon discovered. It's all about the pricepoint and given your attention to detail in creating a unique and quality product, I feel you could still push that price point a little higher, which would certainly help. Your product really has no effective competition and the right customers will pay a premium price for that. Love your work
Hi from Australia. I Just started on my woodworking journey and my main medium atm is palletwood. Your channel (amongst others) has been a huge inspiration for getting that journey started and figuring out which direction I want to go. Cutting boards are very high on my list, but I am thinking they will be more scrap wood projects, time fillers as I still want to work on bigger projects (once I have learnt and worked upon my skilset). Thank you again for the inspiration and keep up the great work. All 3 of my youtube accounts are subscribed to this channel. Hope that helps in some way.
Wow, very insightful. I’ve started following a few woodworkers/cabinet makers, and at one time was thinking of getting into business with a friend making furniture, and had no idea about the effort to profit ratio. If I were faced with this, I’d consider either much higher prices, or broader range (from simple boards to complex). Churn out the simple ones more frequently to create more frequent smaller sales, while the more complex ones can be promoted in more places and priced higher. Interesting dilemma for crafts folks these days, especially when competing with luxury retailers.
As a home rebuilder I have never put the actual numbers in as you have. I just love recycling old worn out houses into beautiful ones. Was always too busy trying to make ends meet to actually spend the time trying to break down each aspect of a more complicated process to work it down to unit costs and profit. I don't think I really wanted to look at my failing in time estimations. Like you though, long hours and efficient work made it a living. I did know, I choose a hard way to live. It takes a special person to be able to reflect on business oversights and then go naked to the world with them. It takes a special artist to create what you do, realize the entertainment value, be able to edit in a creative and entertaining way and most of all, have your presentation skills! Multidimensional talent! I picked up a house now and again and some now have been paid off by renting them out. So at simi retirement I don't have to work much and it should get better with time, if I get enough of it. Your videos should do the same for you, only better. Here I am very moved a year after you completed this video. An idea. With the wealth disparity now in the world, and your unique beautiful builds, It is very possible you could price out 3D patterned tables, or surfaced furniture to put you in the hundreds of dollars per hour earnings, or more. That clientele doesn't have enough unique things to acquire to impress their friends, and they really can't spend all the money that keeps rolling in to them. Probably room for indirect sales too. Now with that market, you could pay $40/hr for an employee at some point and have some of the good suggestions in these comments regarding equipment upgrades. Another idea. If you went with the above table or furniture idea, it would seem that you could slice a veneer for the field of your projects. Thanks so much for all the sharing .
Great information, well researched and presented. Thank you so much! A few advantages I have that others might think about: 1. My workshop is on my property, so there is no rent. It did cost me $12,000 to build and electrify. 2. I started my original career young, and retired last year at age 55. I'm on a pension now for the rest of my life, so making $40/hr isn't as crucial to me (though I would like to reach that level as a woodworker). 3. 9 years ago we converted our property to solar power, which includes my shop. It covers all our electricity needs. In about 7 months we will hit the break even point, where we have completely recouped the cost of installation over the electricity it has produced so far. After that, our electricity is totally free for at least another 15 years or so (the warranty of the solar panels).
I hope you make it to 1.8 million views on this video. I greatly appreciate this video, it really showed me the ins and outs of this business and everything that goes into it.
Ryan, you touched on an important thing.. well many... one that I find striking is your appreciation for arriving where you are how you did and being thankful for the same. I think that's a worldly trait.. humble to be sure. Thank you again.
Amazing boards. You forgot one crucial factor in your calculations. The factor that prevents me from pursuing my own carpentry hobby. The availability of time to do this is priceless. I'm lucky to get 30 mins a week that I can devote to hobbies.
Thank you for the video. Your openness and honesty are refreshing. I watched this with my wife and I kept saying “and you wonder why it takes me so long to complete a project”. It’s a lot of work and for very little money. I cringed at your cheap oak flooring. But you definitely confirmed my thoughts on that. But your product is amazing. I love your boards. Best wishes on your work going forward!!
This is ESSENTIAL for all business wannabes.. also i would point out another essential.. Machine that isn't working is a liability, not an asset, this is why you are hiring people.
If you put a sports coat or long sleeve button up on you are one of these or both. 1. University Professor 2. Cult leader. I'm pretty sure your low-key #2 already as your subscribers are more than fans but seriously I I feel like Neo after the spike is pulled out of his skull. I know cutting board carpentry! Great video. I've definitely subscribed and am better for watching.
You are amazing. Your workmanship, attention to detail, minute accounting of every cost most people don't consider.... You give yourself far too little credit. I've never made money on a woodworking project, and probably never will, but still watched this because of how well you put it together. I hope you make a boatload on this video, you deserve it. You could make "rustic", ie, thrown together flea market items and probably profited more, but YOU are an artist. As with all artists, unfortunately, you probably won't be recognized until you're gone. But, someday, these heirloom items will be handed down and cherished by whoever inherits them. If you haven't considered that, please tell me you include your signature or maker's mark!!? Someday, someone will be looking for information on the artist who created these boards. You are creating a legacy, give your great grandchildren something to be proud of. Who knows, generations from now, one of them might wonder who they get their artistic abilities from. They should be able to learn your story. Just a suggestion from an old woman who was adopted at birth, and just traced my artistic abilities (in painting) to my biological father's line of Nordic woodcarvers. Call it stupid, but the feeling that I finally fit somewhere, is everything.
Ryan - Great video. I have watched all the videos. Some twice. The breakdown will help me as I get into some side business woodworking in a month or so. I will watch this one definitely another time to get the math right. One suggestion (as a multi-business owner myself), find some projects that you can make with the scraps that take little time and money (not end-grain cutting boards) that you sell for profit but accessible to a larger clientele. Things that maybe cost you
This is a great video especially for the beginner woodworker with pie in the sky dreams. Thanks so much for this breakdown. OK, with that said....A couple of things that you didn't account for. They may be considered minor but are costs nonetheless. 1) cost of and wear and tear on your vehicle. It is another formula but calculating cost of owning the vehicle into the big scheme is a factor. Breaking it into a cost per mile is a easy way to factor it into your calculations. Loan payment, insurance, tires, oil and other fluids, repairs like brakes and wiper blades. This cost can be significant. 2) initial investment of phone, camera and other equipment, tripods, SD cards, computer and any programs necessary for accounting and video editing. Cost of the home office where you might do the editing. This can be calculated by getting the cost per square ft of the house and multiplying it by the square foot of room used. 4) cost of the wear and tear on your tools. I know you talked about the vac and the blades but the tools themselves wear out and need repairs. Your tools wear a siginificant initial investment and do require some money and effort to maintain them. 5) you mentioned this but I want to reiterate it. Cost of reclaimed materials. I have found it is usually not cost effective even when you can get them for free. You can ruin blades, router bits, sanding pads and even tools by hitting nails and screws or other foreign objects. Finish materials are also very difficult to remove and very hard on the machines and supplies like sand paper and blades. And the time involved to make them usable material is tremendous when compared to fresh lumber. A friend of mine used this saying a lot. "stop stepping over dollars to pick up pennies" 6) this may not apply to everyone but many times you can buy lumber already to the dimensions you want and is "ready" to use. The cost of the material is a bit higher per bd/ft but your labor input goes way down. Many times the suppliers have the larger equipment that can make quick work of the initial dimensioning steps. The additional cost in materials is usually less than what you would have to put into it. This can become significant savings in time and materials when factoring the cost of waste cleanup and removal...especially of the larger material cutoffs from the initial dimensioning waste from planers and table/band saws. It also reduces the amount of wear and tear on your machines and YOU! Any result in lower cost of goods sold allows you to lower the price a little, possibly drastically increase sales from a lower cost of purchase and significantly increase profit margins per fbd/ft. A few small investments can reap exponential returns in the end. I know I could get even more into the weeds on shop layout, glueup stations and processes, and more but those are 6 sigma process management tools that only come after you have fine tuned your other factors and have profits that you can reinvest. Good luck to you! You have the proper mindset and are well on your way to increased profits.
Agreed with everything you said, but what’s not said in the video is the profit from You Tube which for this video alone is not much but I noticed that he has at least 6 videos with well over a million views which based on his calculations are worth a lot of $$$ , so I guesstimate that he is making well over $40 an hour which is not astronomical and he could and should do better especially seeing how gifted he is ,but it’s not $19 an hour. Or maybe I’m wrong 😂
Thank you. I'll be showing this to my husband so he can better think about how much he charges for the woodworking he does. I'll also share it on facebook because the average person doesn't know why things cost what they do. Good luck.
Thanks Ryan, I spend 20 bucks going to the cinema to watch roughly a 2.5 hour long movie, so I thought I'd donate roughly the same. I learnt so much from your video, and it was entertaining to boot, cheers from Australia 👍
Thanks Ryan for the video. Yes it was long but worth the watch. I agree with you on smaller profit margin and greater sales than huge profit margin and smaller sales. Keep up the good work and will be seeing a lot more videos of yours. 👍
Well on January 19, 2024 you’re up to 263,939 views. Getting closer to your 1.8M view goal. 😂. Great video! Loved it. This is the first time I’ve seen your videos so now I’m going to go watch more of them and see what I can learn. I also make cutting boards as client appreciation gifts. I make them out of hard maple, cherry, and sometimes include a 3/8” walnut strip for an accent piece. I sell my 7x10x1.25” for $110, 9x14x1.25” for $145, and my 11x17x1.25” for $175 plus shipping. Sold right at 100 boards in 2023. Got to find the right clientele for your boards.
Ryan, you have all the skill sets and tools so now you need to increase your profits. A simple way to do that is increase the project size, with less tech measurements and less time on the machinery. Items such as kitchen cabinets, counter tops, dining tables, chairs, buffets, bedrooms, finish carpentry. We did this 30+ years ago. One kitchen could triple your profits. Haven’t made a cutting board since!
Woow amazing I am starting in the cutting boards making in mexico and struggle a lot triying to sell then in around $150 dlls your video makes me realizing that I should look for a better market thanks a lot
You make inspiring, functional pieces of art. You are a craftsman. Content creation aside, I can assure you this: your time is worth much more than $40/ hour. As an entrepreneur, business owner, and fellow carpenter, I hope you learn this on your business journey.
thank you Ryan for yet again, an other very interesting and entertaning video, Im a self employed marine trimmer / sailmaker base in the south coast of England and I often share my working space with wood workers boat builder. And I alway share a link to your instagram page to those guys and the feedback is alway very positive. Personally, this particular video resonate with me a lot and I often find myself trying to examine my pricing and how to optimize everything for maximum profit. best regards Pablo The sailmaker
Thanks for sharing your incite into your woodworking experience. Many people don't realize how much work and time goes into a project, I'm so glad you shed light on these expenses. Keep up your wonderful content and stay safe in your shop.
Sad to see you haven't hit the 1.6M views yet. I stumbled across your videos, and 4 or 5 into the rabbit hole and I watched this movie of your breakdown of expenses. It was informative and entertaining, keep up the great work.
You know, I've been going through quite a few videos these days about the woodworking business, and most workers don't want to give out even half of the information you just did. The peek behind the curtain, the statistics, the breakdown...this video was more informative and helpful than so many classes and such I've seen and taken in the past. Thank you so much for this information and the walk through your process.
As I can and when I can I would love to help support you and what you do. I love your work and your humor and can't wait to see how you evolve in the future with your tables/furniture and various projects. Thank you again, Ryan!
So glad it was helpful to you!
@graidian hit it on the head. This video was one of the best I've ever seen on TH-cam for woodworking or otherwise. It hit me about 2/3 of the way into the video (somewhat embarrassed by how long this took me) that you took the same approach to this video as you do your woodwork. Thoughtful, thorough, & attention to quality. Thank you for taking the time to make this.
nobody wants to go through this level of detail because no woodworkers want to admit that there is almost no money to be made. High intensity labor and high material cost.. combined with a high cost finished product that is limited to high end clients... the juice is not worth the squeeze.. McDonalds managers make more money and do far less work.. Unfortunately.
With your attention to detail you'd likely make a lot more money being a business manger..Most people don't understand these basic principals and this is a major reason why 80% of businesses fail.. Ive come to the realization woodworking can never be profitable or sustainable for me(without youtube revenue), but its something i still love.
This is by far the most detailed behind-the-scene breakdown I've seen on this topic - and I've seen quite a few. I am not a woodworker. I have bought some tools and gathered some practice material to start woodworking as a hobby hopefully sometime soon. I loved watching the entire video and appreciate your sincerity. Thanks!
Glad you enjoyed it!
Ryan, my wife sat down as I was watching this video and commented that I must 'be in heaven' with all the woodworking and math nerdery going on. 😂 Appreciate your transparency in this video! And it goes without saying, you do great work! Thanks for the ideas for my own board-building and for the entertainment over the last few months.
Glad you enjoyed it!
My compliments on your analysis; it is the most thorough and realistic of any that I have seen on TH-cam. So many people forget many of the things that you took into consideration, which is why your assessment is indeed extremely accurate. The challenge you have is that your incremental cost per board is almost flat. In an enterprise that is more manufacturing oriented, the first board would be the most expensive, and then each incremental board would have reduced costs; and those are the ones that help create positive profit margins. You get there by increasing output through increased efficiency and reduced time per unit produced.
All the problems you listed have already been solved within the industry, but they will take capital investment to put into place. Specifics: You need a widebelt sander. (NOT a drum sander; do NOT make that mistake! The frequency and difficulty of changing paper is a killer of productivity.) You need a decent planer and jointer with segmented cutting heads to eliminate blade changes. You need something called a clamp carrier (google is your friend...) and a purpose-built glue roller. (search for it under veneering tool suppliers.) A used sliding table saw would be a good idea as well... See your MTM friend's saw for its value. OK, here's an almost free one; Get a tub and immerse the boards in oil. Let physics do the job! With those tools you could produce double or more the board count in the same time as the ones you made here. Now, do you WANT to do that? A much bigger question that I can't answer for you... Best wishes with your business!
This is really good advice. Especially the wide belt sander vs. drum sander. Thank you for taking the time to comment
This is perhaps one of the best videos on running a business in general not just a wood working business. I grew up with self employed parents and while I work for a school many of these lessons were hard learned from them with similar considerations to be made.
Your breakdown is excellent. I've been in the photography business for 36 years (wood working is my hobby). There are so many people in both industries who don't understand that the cost of materials is just a drop in the bucket when considering costs. Everyone who wants to be in business for him or herself, in any industry, should see this.
Glad you enjoyed it!
Everyone who wants to start a crafting business should watch this video.
Best overview I've seen of how it really works.
Definitely not a price issue - but a cost to make issue. Have to get the labor down. But getting the labor way down without turning it into a manufacturing line is tough. Way way too much time sanding - there is a reason big shops don't sand this much. It's too expensive.
Thank you for such a detailed explanation of the reality behind the scenes of us wood workers. I cringe when I think of what I need to charge a customer but then I also remember that I can't afford to go broke to give them a special built piece either :) I pray you video pays well and will for sure be sharing this to more people. More youtube creatives should do some breakdown videos like this and I hope you inspire them to do it.
Thank you again!!!
Chilly
I really enjoy your videos. You helped me a lot and I just wanted to thank you. I’m a weekend woodworker and I’ve made about 20ish cutting boards. 14 months + $6k in equipment into my hobby and I love it. I do other projects but I enjoy cutting boards a lot. Keep making videos! I bet a lot more people understand how much time, money, and love go into each board now.
Good info for people who dont think of all the details and gives you specific areas for focus on to reduce expenses to increase profits. Cheap wood that takes a ton of labor to prep and hundreds in tools/supplies is not cheap wood anymore. You Need a drum sander, cheaper source of walnut, dont need to raise grain between grits to cut production time, look into indistrial clamp racks or build them, you waste too much time and energy clamping- moving to clamp another board - moving back to unclamp and clean to move again to unclamp another then move a 3rd tine for final unclamp, buy rubber feet in bulk to cust cost by more than half. Cheaper office expenses ($25/board is 3x to high or include wirh shippinf costs). Look at LEAN manufacturing to eliminate inefficient parts of the process. Split your shop and rent to someone else or rent as storage to lower overhead. Start by taking notes on Kris Devo batching 6ft boards instead of of batching 2 ft boards.
TH-cam is a separate set of metrics. Outsource filming and editing so you can spend time in the shop, promote the channel to get subscribers up and get sponsors to supply newer better tools and supplies - laguna, jet, sawstop...even local hardwood dealer or online lumber suppliers
All good info!
This is one of the more educational and encouraging videos SO MANY SHOULD SEE! I'm sure there are plenty of people who see peeps like you selling cutting boards for hundreds of dollars and never think about everything that goes into making them beyond our material costs.
Job well done, Ryan; have a 5-er (wish I could afford more). I wish you the best of luck in your endeavors.
Thank you Scott!
@@ryanhawkins the board foot thing freaked me out 😂 would be cool to see u do a video about metric. Maybe making a metric board using only metric 😂😂😂
I've been following your videos for some time now and can empathize with your struggles. As a semi-retired woodworker at 74 I have a shop and all the equipment needed to make cutting boards myself and have been toying with the idea for about a year. I find your analysis quite sobering and really appreciate all the work you put into it. Perhaps I'll keep it a hobby for now as my desire to work 10 hour days for $10.00 per hour is somewhat diminished after 40 years in the business.
Thanks for watching
ditto
WOW just WOW! After reading all the comments, after watching the entire video, that's all there's left to say WOW!
This was a massive gift to all of us who are getting started (or hoping to) and well worth my paltry gift. Thank you so much!
I agree with so many of these comments! Your explanations and attention to details make me feel like I could also begin making edge-grain cutting boards and sell several a month. But at $10.00 an hour +/-, maybe I should just make a few and give them away as gifts!
Great job and thank you!
My pleasure!
Hats off for your unbelievable transparency on this subject! There's so many data/metrics exposed in this video, it would be awesome to have more video done like this by other YT channels. Truly glad you made this one :)
I would also suggest that you reach out to different brand and try to get some sponsorship in the form of more beefed up (industrial) tools. Table saw on its last leg? Reach out to Saw Stop/Harvey/Laguna, I'm sure they would be glad to help you out! Same for the planer... I can hear the little dewalt planer scream when boards goes in and out of it (I know I had one) :D
As someone suggested, go with something that has carbide inserts, it'll pay for itself with the amount you are currently spending on planner/jointer knives.
Anyway comments is getting ridiculously long... like the video ;) So keep at it, you are really inspiring to watch :D
All good feedback, thanks!
This is the kind of data I have collected on work I have done in the past. It's amazing how many people don't count the little bits and pieces into their costs and really don't see how much overheads cut into profit. Great to see someone expressing a genuine business approach to honest numbers . Too many dreamers out there selling nonsense ideas.
Thanks for making this video.
Your cutting boards make resin river tables look like a cop out!
This is a whole different level.
I absolutely loved the detail level shared. Solid cost analysis is critical to every business, yet is too often never properly analyzed, or, even worse, flat out ignored. There are numerous takeaways, including the need to raise pricing and looking deeply into cost-cutting with efficiency gains in materials, labor, and overhead. Well done! Thank you for sharing so openly!
Thanks!
Better than any quality earnings call I've listened.
Thank you!
Wow, I had no idea the amount of time and effort and hair pulling it takes to do this. I thought I was a hard worker but my hat is off to you young man. Thanks for sharing this with us.
This was awesome, thank you for taking the time to do this.
Glad it was of value to you
Thank you for this. I’m just getting into cutting and serving boards. If you invested in some additional tools, such as a CNC, larger plAnar or drum sander and perhaps a more powerful table saw, you could make your money and not have to raise your prices as much as is represented in this video. A CNC alone gets you a bunch of time back. The world needs your work!
This is such a great video, and it really makes my neardy heart happy. Far too often we undervalue our time and effort, not to mention the materials that go into the beautiful objects that we make for others simply because we haven't taken the time to break it all down. Also, customers then tend to undervalue the product as well as criticizing the selling price because they may think "they could do it for less." That can be so heartwrenching!
I am only part way through the video, and am wondering how you digest the numbers for your own situation. How do you use that info to make decisions about new tool purchases, like a planer that has a wider table, or super fine cutting heads, that would simplify or make your process more eficient. At what point are you able to say "this expenditure with net this much time savings, leading to x profitability"?
I love the numbers, and love how you break it do into real tangible terms. Don't forget to include your knowledge base, your education, and the value of being able to problem solve. Keep up the great work- it is beautiful and so worthwhile!
When people want a detailed breakdown of why custom work costs so much I’m gonna refer them to this video. Awesome job.
Awesome video! I'm currently working on a batch of 50 cutting boards (not end grain) and keep wondering to myself if it's even profitable. This is great information to help refine processes and be more efficient.
As someone in the woodworking business myself, the breakdown on cost was enlightening. Thank you for your thoroughness and attention to detail. Blessings on your work!
Amazingly detailed and well done video, much appreciated you posting this up.
A huge planer and a sawstop are two tools I'd make the immediate upgrade to. The planer as you mentioned could cut your gluing and planing time down by a lot. A 3HP sawstop would give you a more powerful saw designed for commercial use as well as the sawstop technology in it. Making repetitive cuts is where accidents are most likely to occur since that's where you're most likely to zone out when working. I'm not sure if you have one already, but I'd strongly recommend adding a cyclone separator to your dust collection setups; both for the shop vac/sanding as well as the larger collector.
The drum sander is another upgrade well worth the investment, though last time I checked those things are up there in price.
All in due time my friend :)
Hit the nail on the head with the honest info given in this video. I've been running a cutting board business for yrs and while we love doing what we do unfortunately we don't make much overall. Theres alot of other videos out there that make it sound like overhead/time to construct is much lower than reality. Bottom line is you really have to enjoy this work and you have to be willing to work hard at it but not expect as much in return as the typically -Make Easy Money On Cutting Board videos, those people post what most new business dreamers want to hear and they take advantage of it sadly.
Hi Ryan!
I know others have already mentioned it, but this really was an excellent video. I’ve have never seen anyone come close to sharing numbers on their builds. You really opened my eyes to why woodworkers charge as much as they do for a product. When I first saw your boards I was surprised you were asking such a high price, and equally surprised that people were willing to pay this price, even though your boards are beautiful. Now that I know how much time they take to make, it makes perfect sense why woodworkers charge what they do.
As I watched your video, I was thinking a drum sander and wide planner would save you time, but wonder if you can save some cost by buying the 55 gallon barrels of glue Titebond sells. Is it possible, or even feasible to buy sandpaper and saw blades in bulk from Freud/Diablo or 3M? Would it be cheaper to buy high priced saw blades that can be sharpened several times? Let these companies know you have a TH-cam channel and they might give you a break on the costs, give it to you free, or even sponsor your channel. You never know until you ask.
I also also thought about a CNC which could face the boards, cut the groove and handles at the same time, but not sure how much time you’d really save given the time it would take to set up each board, flip it and face the opposite side. At the end of the day, you should ask yourself if you’d rather make $18-20 some dollars per hour, plus whatever you get from TH-cam, or would you rather flip burgers for the same wage? I truly hope you will continue to grow both businesses.
Glad you enjoyed it! I thought 55 gallon was a typo and that you meant 5 gallon but then I googled it and I learned something new today. If I had the cash flow to purchase nearly $3K in glue, I'd likely do it. I definitely plan to buy some 3M sandpaper in bulk and am looking at switching blade brands once my current blades wear out. Re: tool companies, sponsors, etc - I've got some things in the works ;)
@@ryanhawkins you should check out the Italian CMT ITK Extreme sawblades and the Famag Bormax 2.0 forstner bits. I'm pretty sure you'll like both.
What a cost / profit breakdown!!!! The time and effort to document, video & edit this alone is amazing. I don't do what you do but i can apply this method to my wood-resin casting world easy enough. A HUGE thank you for putting into perspective a subject i'm sure many of us think about but don't apply to it's fullest. Thank you very much sir.
Great video! Appreciate the detail and stepping through the methodology to break it all down. I hope this one goes viral and gets you closer to that well deserved $40/hr!
Thanks!
Thanks for the video. Your experience is exactly why I have decided to keep my hobby a hobby. My free time is far more valuable than the 💵. I also enjoy the expression on the peoples faces I give gifts to.
I’m only through the brick board build and costing and am very impressed with your detailed breakdown. I wonder if the “inexpensive” oak didn’t end up costing you more than lumberyard oak, given the labor, blades, sanding materials, etc involved with it.
I just told my wife I was going to make cutting boards for all the family for Christmas. Based on your numbers, I just saved myself far more time than I have available. $5 does not seem like thanks enough. Love what you, and hope you get those machines.
Thanks so much!
Great video Ryan, it’s absolutely obvious you love what you do and create in your shop! I’m really glad I purchased an amazing board from you last year. It’s awesome and it’s used often, waxed and buffed between using it!🤩👍🏽
Thanks Ron, glad it’s still serving you well!
Thanks Ryan, this really breaks down the profits earned and the hours it takes to produce woodcrafts. I used to wholesale my products, but at the end of the day, it was the same amount of hours for half the cost. I think one big order, I made less than $2/hr. Lessons learned!
Great show, good teaching experience 👏
I would like to make a couple of suggestions, edit this down into 4 or 5 separate videos with a common title and number them 1-4 or 5. More people would be apt to watch a 15-minute video over one that runs 1:17:12.
The other suggestion is to offer the edited videos on patreon or offer as a sold course.
Thanks!
nice video . I sell and build boards for 10 Years now.. your absolute right in your calcs, in my first year i was on this 10 € / hour gap. then i invested alot in sanding machines, drum sanders, and heavy planers, now i am over 70 € / hour... Machines rock.. thx for your video.. :)
Hi Ryan, having a drum sander would have saved you some more time on the orbital sanding too. Also, you have no margin for the risk of flaws in % of the boards you made, that could cost you some more time and expenses to repair or replace. Overall, I've learned a lot with this great video!
Great video Ryan! I just recently started an LLC and have sold a few boards…mostly to family. After watching your video I can see I did that at an extreme loss. At about the half way mark of your video I started feeling discouraged, but at least now(and early on in my journey) I have your detailed knowledge to learn with. Im now leaving excited and confident to charge what my heart is telling me to ask for and not feel guilty about it! I also have a guide to billing no matter where the craft takes me. Thank you sir I hope you hit 1.8 million and beyond.
I feel bad for you. To bad some of the things we are passionate about,are simply hard to turn a profit. I made a bunch of fairly simple cutting boards/bread Boards and sold them for 40.00. I was in hobby lobby one day, and they had boards almost identical to mine..for 13.00. Made in another country,shipped across the ocean,distributed them to our retail stores ,sold them for 1300 and made a profit at that price. Long story short,I’m done making bread boards. Gonna be passionate about something else 😋. Thanks for sharing your story.
Thanks for watching and sharing a bit of your own
@@ryanhawkins Why would you misconstrue your labor as profit? They are not even remotely the same thing.
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Totally! I also started to make cutting boards at the outset of my woodworking hobby business. I also have changed my model to making custom furniture pieces. Do I make money? Nope. I love creating, and in the end, if I can make it for cost plus a small amount so be it. Cheap imports, and the world getting used to the Walmart influence has killed small business. What used to be an area to artistically create and produce unique pieces has turned into, “ but I can buy something similar at Walmart , or Etsy for….”. There’s a reason profesional woodworkers turn to TH-cam to supplement their income. It’s sad, but and a reality.
I think k you need to improve the efficiency of your operation. I suspect you would be better not using recycled wood like that.
This video is mental! The breakdown is phenomenal. It looks like its stressful.
Alot of work. People here in Ireland simply wouldn't pay that amount of money for these boards.
Good for you!
Is this genuine???
Your frankness with your real numbers is unmatched anywhere! Keep up the great work :D
Your "only table" caught my eye and I clicked on it. I am a retired carpenter and all that I could think of was that you must have another source of income. Then, the algorithm offered me this and I had to look. I did NOT need all of this info enough to spend this much time watching but your honesty and transparency were therapeutic. It is what I try to offer the world and it breaks my heart that so many people think that deception and privacy will bring them happiness. Do not underestimate the healing power that you are having on this world by being who you are. I promise you that if you keep the faith and enthusiasm, the world will thank you by gifting you with happiness, and taking care of you so that you can keep giving the gift that the world needs to unlock the joy and wisdom within other people's hearts.
Thank you for a real life lesson on the economics of running a woodworking business. Well done!
Thanks for watching!
I did antique restoration back in the 70s & 80s ( third generation woodworker). As I followed you through your whiteboard presentation, the point my heart ached for you was when you revealed a $16/hr wage for yourself. Back in the day, 40-50 years ago, we charged out our work at $16/hr. I know you're not in your comfort zone yet (hrly), however, your work is worth far more than you are charging. I hope your exquisite work will cause customers to beat a path to your door. It doesn't just apply to a better mousetrap. Wishing you good fortune from now on, Ryan.
Ok. WOW! I actually made it through the entire video! I'm proud of myself just for that. This was one of the best if not, the best breakdown videos I've ever watched. Your cutting boards are amazing and you should be making much more for your talent and effort. That being said, your love of the work you do is very important and sometimes making $40. an hour may seem less important. I know this video is at least a year old now and your latest videos do show some of the equipment you stated would help to get you closer to that $40/hr goal. I had often thought about making items like these and you just changed my mind. Thank you for that. I have a career and I'm literally 3 years from retirement. I make just over $40/hr and have a fairly stress-free job. But the difference is that I've never liked what I do. For over 35 years I've worked in the same manufacturing industry in one small plant. I've moved from job to job within the same company for decades and never really cared for what I do. 😂 My most recent position is just ok and it's pretty much stress-free. I always tell my newer coworkers when asked if I like what I'm doing that out of all of the positions I've hated here, this is the one I hate the least. 😂
So, even though surviving and feeding the kids is important, it's equally important to love what you're doing and I admire you for that. Thanks for sharing this and your amazing talents.
I appreciate how thoughtful and thorough your approach was. Thank you for taking the time to put it all together for us!
I got into this via random feed recommendation, and I must say, this is not only one of the best primers on pricing around, but also for process optimization. Great work.
Best video on the business side of wood working ...I need to show this video to my neighbors who insist I do things for them ..
I appreciate what you have done with this video. Transparency is something most people are unable to do. That being said, I feel like there are a few things that you are doing that are costing you time. You speak of MTM and I think he is probably the GURU of boards, at least on TH-cam. I watched his two videos on how to make a cutting board. Generically. He never glues both sides of his pieces. He never unclamps and scrapes the excess glue off and then re clamps. This takes time and it's not necessary. Some of the boards take several glue-ups, so every time you do that, it's lost time and lost money Secondly, get a 20" thickness planer so you don't have to do glue-ups that fit your 13" planer. Purchase or build a drum sander. Get the best random orbital sanding pads you can find and don't over use them. When they are done, throw them away. The hardest thing you may need to do is move out of the big space and get your overhead down to where it isn't costing you an arm and a leg. I would kill for that much space, but if it's eating you up, you probably need to give it up or ramp up with a helper so you can get enough production to offset the cost of the facility. All that being said, you do great work with very nice quality. Good luck with your business!
My dad was a woodworker. Garage shop, worked endless hours nothing. I like the way you break down expenses. Most people have no idea what they are getting themselves into. Woodworking is a tuff industry
Wow Ryan, a big reality check on the cost. Like some of the other comments on here, most woodworkers don’t show the info you’ve provided. Hope the endless viewing of your videos helps towards providing more income.
I appreciate your honesty and transparency! You are such a hard worker, i really wish you big success. You deserve it man!
I hope the algorithm picks this up and you can get to 1.8M views. I loved the detailed breakdown.
This is the greatest cutting board video on YT. Thank you.
I see on a lot of the Woodworking Facebook groups, people always asking what to charge for their work. I'm going to point them to this video. It takes into account so many things other people don't consider, but should. Thanks for sharing. And nice work on the boards
Thanks for spreading the word
Great info on numbers here! I have my Spreadsheet Locked and loaded. Change any variable and all the important numbers to watch will update with proper formulas. Thanks a million for taking the time to break this down.
This was a great...very great video. I started this woodworking hobby to have something to do after 37+ years in the Fire department and the same in US Army Reserve (7 overseas deployments). I never expected it to become a way to make money. I went to an engineering high school (Baltimore Polytechnic Insitute), woodworking just seemed to be the right thing to have as hobby for me.
I did an inventory of all the tools I have. I'm well over $35,000. They are not all the number 1 or best tools, but what works for me per my ability, safety and pocket. Some of them are garden tools (lawn mower, trimer etc.) some are machine tools for car repair (floor jack, engine lift, socket set, etc.). But a good portion of 35K, are woodworking tools. (3hp Sawstop table saw, drum sander, Dust Right, Ridgid tools, etc.) So, for me there would be an additional cost to calculate. And I would need to also include the books a magazines and classes.
I do want to make some of the things I have seen on your many videos, but I did not start this until about 6 years ago. I'm not at the level to be selling too many things yet. So, for right now I think I need to keep it as a hobby and maybe an occasional money maker.
Please keep doing what you do!
Ryan, after your in-depth disclosures, it appears that you have taken the cutting board train to the end of the line, both creatively and monetarily. Furniture making would provide a more lucrative niche market that would allow no less creativity and skill than you have already demonstrated, while providng more satisfaction from increased revenue. You have a devoted following. Your work is highly esteemed. Capitalize on these accomplishments. It will benefit your understanding and supportive wife, and the future of your young child, while you open yourself to an expanded woodworking universe. Patience and perseverence, two attributes which you already possess, will serve you well in your future endeavors. Your communication skills are first-rate, and your clear-eyed assessment of your craft provides you with credibility. I see no reason why your career couldn't parallel that of Sam Maloof. Best wishes.
Excellent info. I completed my first (and last) end grain butcher block in 1981 with just basic hand power tools, sanding took forever and I decided to never do that again. I am glad you included the portion on the time to video. While I have never actually timed it, I have always felt that creating a video at the very least, doubled the amount of time it took to complete a project. Steve
There is a gorgeous worksheet for pricing future projects buried in this video that someone is going to pull out and publish, and when they do I hope they give you proper credit. Was the info daunting as someone trying to stick a foot into the business? Absolutely. Was it discouraging? With how well you broke things down, not at all; it was empowering to be able to walk into this with eyes wider open. The "thanks" will be coming when I'm able, but a real thank you for this lesson right now.
And people wonder why handmade custom woodworking items cost so much....Great video!
I always find it amazing to see people's reaction when you give them a cost for an item you make...For instance Charcuterie boards....I tell someone $75 for a 12.5"x29" all hardwood charcuterie board and they look at me like I'm crazy...And that's probably not even $10 dollars an hour to complete...People don't think about the sand paper, Finishing oil, Bees wax, Sourcing and picking up the wood ( I routinely drive 3-4 hours round trip to pickup hardwood) Then there's the cost of the wood (that seems to keep going up), The glue, the glue applicators, the equipment cost and then wear and tear on that equipment, oh and then the electricity to run the shop....The costs are endless! Thank you for sharing this for us woodworkers out there! Love your work!
WOW what an amazing video. Your woodworking skills have to take a backseat to your analytical skills. Keeping it REAL. All of us watching have a passion for woodworking but turning that into profit is not an easy task as you soon discovered. It's all about the pricepoint and given your attention to detail in creating a unique and quality product, I feel you could still push that price point a little higher, which would certainly help. Your product really has no effective competition and the right customers will pay a premium price for that. Love your work
Hi from Australia.
I Just started on my woodworking journey and my main medium atm is palletwood. Your channel (amongst others) has been a huge inspiration for getting that journey started and figuring out which direction I want to go. Cutting boards are very high on my list, but I am thinking they will be more scrap wood projects, time fillers as I still want to work on bigger projects (once I have learnt and worked upon my skilset).
Thank you again for the inspiration and keep up the great work. All 3 of my youtube accounts are subscribed to this channel. Hope that helps in some way.
Wow, very insightful. I’ve started following a few woodworkers/cabinet makers, and at one time was thinking of getting into business with a friend making furniture, and had no idea about the effort to profit ratio.
If I were faced with this, I’d consider either much higher prices, or broader range (from simple boards to complex). Churn out the simple ones more frequently to create more frequent smaller sales, while the more complex ones can be promoted in more places and priced higher.
Interesting dilemma for crafts folks these days, especially when competing with luxury retailers.
As a home rebuilder I have never put the actual numbers in as you have. I just love recycling old worn out houses into beautiful ones. Was always too busy trying to make ends meet to actually spend the time trying to break down each aspect of a more complicated process to work it down to unit costs and profit. I don't think I really wanted to look at my failing in time estimations. Like you though, long hours and efficient work made it a living. I did know, I choose a hard way to live. It takes a special person to be able to reflect on business oversights and then go naked to the world with them. It takes a special artist to create what you do, realize the entertainment value, be able to edit in a creative and entertaining way and most of all, have your presentation skills!
Multidimensional talent!
I picked up a house now and again and some now have been paid off by renting them out. So at simi retirement I don't have to work much and it should get better with time, if I get enough of it. Your videos should do the same for you, only better. Here I am very moved a year after you completed this video.
An idea. With the wealth disparity now in the world, and your unique beautiful builds, It is very possible you could price out 3D patterned tables, or surfaced furniture to put you in the hundreds of dollars per hour earnings, or more. That clientele doesn't have enough unique things to acquire to impress their friends, and they really can't spend all the money that keeps rolling in to them. Probably room for indirect sales too. Now with that market, you could pay $40/hr for an employee at some point and have some of the good suggestions in these comments regarding equipment upgrades.
Another idea. If you went with the above table or furniture idea, it would seem that you could slice a veneer for the field of your projects.
Thanks so much for all the sharing .
Great information, well researched and presented. Thank you so much!
A few advantages I have that others might think about:
1. My workshop is on my property, so there is no rent. It did cost me $12,000 to build and electrify.
2. I started my original career young, and retired last year at age 55. I'm on a pension now for the rest of my life, so making $40/hr isn't as crucial to me (though I would like to reach that level as a woodworker).
3. 9 years ago we converted our property to solar power, which includes my shop. It covers all our electricity needs. In about 7 months we will hit the break even point, where we have completely recouped the cost of installation over the electricity it has produced so far. After that, our electricity is totally free for at least another 15 years or so (the warranty of the solar panels).
Thank you so much!
I hope you make it to 1.8 million views on this video. I greatly appreciate this video, it really showed me the ins and outs of this business and everything that goes into it.
Ryan, you touched on an important thing.. well many... one that I find striking is your appreciation for arriving where you are how you did and being thankful for the same. I think that's a worldly trait.. humble to be sure. Thank you again.
Amazing boards. You forgot one crucial factor in your calculations. The factor that prevents me from pursuing my own carpentry hobby. The availability of time to do this is priceless. I'm lucky to get 30 mins a week that I can devote to hobbies.
Thank you for the video. Your openness and honesty are refreshing. I watched this with my wife and I kept saying “and you wonder why it takes me so long to complete a project”. It’s a lot of work and for very little money. I cringed at your cheap oak flooring. But you definitely confirmed my thoughts on that. But your product is amazing. I love your boards. Best wishes on your work going forward!!
Thank you!
Andrei is amazing. It's been fun watching his twins grow up as well.
THAT is an honest and very much appreciated video!!
This is ESSENTIAL for all business wannabes.. also i would point out another essential.. Machine that isn't working is a liability, not an asset, this is why you are hiring people.
Thanks! Great breakdown of your project. More people need to run their numbers and understand what their time is worth! Keep up the great work!
If you put a sports coat or long sleeve button up on you are one of these or both.
1. University Professor
2. Cult leader.
I'm pretty sure your low-key #2 already as your subscribers are more than fans but seriously I I feel like Neo after the spike is pulled out of his skull. I know cutting board carpentry! Great video. I've definitely subscribed and am better for watching.
You are amazing. Your workmanship, attention to detail, minute accounting of every cost most people don't consider.... You give yourself far too little credit.
I've never made money on a woodworking project, and probably never will, but still watched this because of how well you put it together.
I hope you make a boatload on this video, you deserve it.
You could make "rustic", ie, thrown together flea market items and probably profited more, but YOU are an artist. As with all artists, unfortunately, you probably won't be recognized until you're gone. But, someday, these heirloom items will be handed down and cherished by whoever inherits them. If you haven't considered that, please tell me you include your signature or maker's mark!!?
Someday, someone will be looking for information on the artist who created these boards. You are creating a legacy, give your great grandchildren something to be proud of.
Who knows, generations from now, one of them might wonder who they get their artistic abilities from. They should be able to learn your story.
Just a suggestion from an old woman who was adopted at birth, and just traced my artistic abilities (in painting) to my biological father's line of Nordic woodcarvers. Call it stupid, but the feeling that I finally fit somewhere, is everything.
Bro… this is the most well put together video I have ever watched!
Ryan - Great video. I have watched all the videos. Some twice. The breakdown will help me as I get into some side business woodworking in a month or so. I will watch this one definitely another time to get the math right. One suggestion (as a multi-business owner myself), find some projects that you can make with the scraps that take little time and money (not end-grain cutting boards) that you sell for profit but accessible to a larger clientele. Things that maybe cost you
I’m listening to this while making cutting boards for Christmas gifts. How awesome.
I watched this entire video, I really appreciate you taking the time to teach the math, but we do it for the fun, the money is just a bonus
This is a great video especially for the beginner woodworker with pie in the sky dreams. Thanks so much for this breakdown. OK, with that said....A couple of things that you didn't account for. They may be considered minor but are costs nonetheless.
1) cost of and wear and tear on your vehicle. It is another formula but calculating cost of owning the vehicle into the big scheme is a factor. Breaking it into a cost per mile is a easy way to factor it into your calculations. Loan payment, insurance, tires, oil and other fluids, repairs like brakes and wiper blades. This cost can be significant.
2) initial investment of phone, camera and other equipment, tripods, SD cards, computer and any programs necessary for accounting and video editing. Cost of the home office where you might do the editing. This can be calculated by getting the cost per square ft of the house and multiplying it by the square foot of room used.
4) cost of the wear and tear on your tools. I know you talked about the vac and the blades but the tools themselves wear out and need repairs. Your tools wear a siginificant initial investment and do require some money and effort to maintain them.
5) you mentioned this but I want to reiterate it. Cost of reclaimed materials. I have found it is usually not cost effective even when you can get them for free. You can ruin blades, router bits, sanding pads and even tools by hitting nails and screws or other foreign objects. Finish materials are also very difficult to remove and very hard on the machines and supplies like sand paper and blades. And the time involved to make them usable material is tremendous when compared to fresh lumber. A friend of mine used this saying a lot. "stop stepping over dollars to pick up pennies"
6) this may not apply to everyone but many times you can buy lumber already to the dimensions you want and is "ready" to use. The cost of the material is a bit higher per bd/ft but your labor input goes way down. Many times the suppliers have the larger equipment that can make quick work of the initial dimensioning steps. The additional cost in materials is usually less than what you would have to put into it. This can become significant savings in time and materials when factoring the cost of waste cleanup and removal...especially of the larger material cutoffs from the initial dimensioning waste from planers and table/band saws. It also reduces the amount of wear and tear on your machines and YOU!
Any result in lower cost of goods sold allows you to lower the price a little, possibly drastically increase sales from a lower cost of purchase and significantly increase profit margins per fbd/ft. A few small investments can reap exponential returns in the end.
I know I could get even more into the weeds on shop layout, glueup stations and processes, and more but those are 6 sigma process management tools that only come after you have fine tuned your other factors and have profits that you can reinvest.
Good luck to you! You have the proper mindset and are well on your way to increased profits.
Agreed with everything you said, but what’s not said in the video is the profit from You Tube which for this video alone is not much but I noticed that he has at least 6 videos with well over a million views which based on his calculations are worth a lot of $$$ , so I guesstimate that he is making well over $40 an hour which is not astronomical and he could and should do better especially seeing how gifted he is ,but it’s not $19 an hour. Or maybe I’m wrong 😂
Thank you for this video as a new business owner this helps so much! Already doing so much math in the making side of woodworking is crazy enough!
Thank you. I'll be showing this to my husband so he can better think about how much he charges for the woodworking he does. I'll also share it on facebook because the average person doesn't know why things cost what they do. Good luck.
Thanks Ryan, I spend 20 bucks going to the cinema to watch roughly a 2.5 hour long movie, so I thought I'd donate roughly the same. I learnt so much from your video, and it was entertaining to boot, cheers from Australia 👍
Thanks Ryan for the video. Yes it was long but worth the watch. I agree with you on smaller profit margin and greater sales than huge profit margin and smaller sales. Keep up the good work and will be seeing a lot more videos of yours. 👍
Well on January 19, 2024 you’re up to 263,939 views. Getting closer to your 1.8M view goal. 😂. Great video! Loved it. This is the first time I’ve seen your videos so now I’m going to go watch more of them and see what I can learn. I also make cutting boards as client appreciation gifts. I make them out of hard maple, cherry, and sometimes include a 3/8” walnut strip for an accent piece. I sell my 7x10x1.25” for $110, 9x14x1.25” for $145, and my 11x17x1.25” for $175 plus shipping. Sold right at 100 boards in 2023. Got to find the right clientele for your boards.
Ryan, you have all the skill sets and tools so now you need to increase your profits. A simple way to do that is increase the project size, with less tech measurements and less time on the machinery. Items such as kitchen cabinets, counter tops, dining tables, chairs, buffets, bedrooms, finish carpentry. We did this 30+ years ago.
One kitchen could triple your profits.
Haven’t made a cutting board since!
Helping the algorithm! :) Thanks so much for this video. I will no doubt be watching it again in the future
Woow amazing I am starting in the cutting boards making in mexico and struggle a lot triying to sell then in around $150 dlls your video makes me realizing that I should look for a better market thanks a lot
This is underrated! GREAT!!! It must have been so much work to put this together. Thank you very much
You make inspiring, functional pieces of art. You are a craftsman. Content creation aside, I can assure you this: your time is worth much more than $40/ hour. As an entrepreneur, business owner, and fellow carpenter, I hope you learn this on your business journey.
thank you Ryan for yet again, an other very interesting and entertaning video,
Im a self employed marine trimmer / sailmaker base in the south coast of England and I often share my working space with wood workers boat builder.
And I alway share a link to your instagram page to those guys and the feedback is alway very positive.
Personally, this particular video resonate with me a lot and I often find myself trying to examine my pricing and how to optimize everything for maximum profit.
best regards
Pablo The sailmaker
Glad it was of value to you, thanks for sharing!
Fantastic thorough info on calculating real costs and maintaining proper profit margins. Thank you!
Thanks for sharing your incite into your woodworking experience. Many people don't realize how much work and time goes into a project, I'm so glad you shed light on these expenses. Keep up your wonderful content and stay safe in your shop.
Sad to see you haven't hit the 1.6M views yet.
I stumbled across your videos, and 4 or 5 into the rabbit hole and I watched this movie of your breakdown of expenses.
It was informative and entertaining, keep up the great work.
WOW, that's an extremely detailed analysis. Well done, and thanks for sharing !