Trade Knowledge
Straight talk on pricing, overhead, and running a millwork shop that actually makes money — written for shop owners by shop owners.
If every job you win is a hard one, your pricing is wrong
Winning all the complicated work and none of the simple work is the clearest sign your prices are flat when they should be dynamic.
The cabinet maker turned business owner problem
Why skilled tradespeople struggle when they become shop owners, and the fatal mistake most make with their pricing.
Congratulations — you're a cabinetmaker who started a business
Starting a shop doesn't make you a business owner overnight. For the first few years you're still a cabinetmaker — and that's exactly the problem you have to grow out of.
What 'knowing your numbers' actually means
Before you price a single job, you need to know exactly what your business costs to exist every month.
Owner's income — paying yourself honestly
Why your effective hourly rate matters more than your monthly draw, and how to grow into the rate you deserve.
Employee wages — daily, monthly, yearly
How to think about total payroll across the three time horizons, and why all three numbers matter.
Utilities — the small line items that add up
Hydro, water, gas, internet, disposal, and the costs people forget. Why itemizing matters.
Material & installation percentages
Where these numbers come from, and how to back-check them against your historical jobs.
Self-performed vs. subcontractor installation
Why these are tracked separately, and how to decide which to use on a given job.
Project duration — why weeks matter
Duration drives shop overhead allocation. Get it wrong and your margins lie to you.
Tiers and multipliers
Base, Silver, Gold, Platinum — what they actually represent and how to set the multiplier.
Keep quotes clean — less is more
Why padding your scope with extras costs you the job, and what to include vs. leave out.
Know who's really making the call
The person approving your quote is a busy PM scanning totals — not a craftsman reading your scope.
Always ask how many are bidding
The number of competing shops tells you exactly how to price — and losing bids are market intelligence.
Follow up even when you lose the job
Following up after a lost job can teach you more than chasing the sale — about your price, your presentation, and how clients really felt about your quote.
You're always leaving money on the table
Won jobs were under-priced. Spread small increases across many lines instead of one big jump.
Payment schedule — protecting cash flow
The 20/30/40/10 split, why it works, and when to deviate.
You are leaving money on the table
Every won job means you left something on the table. The question is how much — and how to narrow that gap over time.
How to know your competitors' numbers
You'll never see their spreadsheets, but you can build a surprisingly accurate picture of where the rest of the market is pricing.
"I'm going to be in the area" — the small-shop service call trick
A simple line that makes you look established when a contractor or homeowner asks you to swing by for a look or a service call.
Don't be afraid to connect with a lot of people — luck is a numbers game
Work and referrals come from being on a lot of people's minds. The way you get lucky is by keeping a lot of irons in the fire.
Don't be afraid to spend money — you have to spend money to make money
Doing everything yourself caps your year at a handful of jobs. Spending on tools, subs, and employees is how a one-man shop becomes an actual business.
Price based on outcome — not on being the cheapest
Competing on price is a race to the bottom. Sell the outcome, price for profitability, and be happy to lose the jobs that weren't yours to begin with.
Getting in the door: how to win a long-term client
The hardest part is getting in front of a good client at all. Once you're there, don't lose them protecting a price standard — give them a reason to take a chance on you.
Price each room like its own job, then discount at the end
When a project has many rooms, price every room as if it stands alone and hold a discount for the end. It keeps you in control when the client starts cutting scope.
Put this into practice
Tenon Pro turns drawings into priced, client-ready quotes and invoices — with your real numbers behind every line.
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