It’s all about value: explaining the cost of custom items

11 Responses to It’s all about value: explaining the cost of custom items

1. Rob Bois | July 26, 2011 at 2:32 pm |

   I would make one minor adjustment in the equation utility-price=value. This works fine for something utilitarian like toys, or even a basic table or desk that needs to fit a specific spot. But in high-end furniture, the equation clearly goes beyond just utility. Certainly a Maloof rocker did not provide tens of thousands of dollars of utility to its owner, but was so admired as a work of art that its perceived value justified its cost. While many custom inquiries are indeed based purely on utilitarian value, these ignores the importance of quality design, careful selection of materials and grain, and the artistic qualities a hand-crafted piece can exhibit. I don’t claim to be in the same universe as Sam Maloof, but I do strive to create beautiful things out of wood that I hope carry more value than just their usefulness as a table, box, or chair.

2. Artsy Home | July 26, 2011 at 2:42 pm |

   I agree, pricing is one of the most difficult things facing makers of custom furniture or custom anything for that matter.

3. Arielle | August 8, 2011 at 10:11 am |

   Really aptly stated, Rob – thanks for your thoughts! I love to paint, and I think skilled paintings have real educational and aesthetic value. Their “utility” is of a different kind: they may not be physically useful as tools, but they are indeed useful in terms of environment and human influence. Your point is duly noted. It’s not just about physical utility, it’s also about the deeper value of an object that’s been expertly and intentionally created, with a magnificence and a significance that goes beyond it’s function…

   -Arielle

4. David B | August 11, 2011 at 11:54 am |

   I agree you have to include art in the “utility” category as one of the parameters of utility…and presumably the custom-work seeker is seeking that along with enough drawer space. It’s not better or worse, just a different type of value.
   But I should perhaps put “art” in quotes, since I sure can’t define it, though I like to think I sometimes recognize it when I see it.
   So don’t be afraid to throw some “art” into even your most pedestrian work.

5. Laurence | August 11, 2011 at 2:18 pm |

   Interesting read. I love doing custom furniture projects, however our clients often start comparing the price of making a custom piece to the price of one of our stock antique furniture reproductions and then they loose interest. I guess our standard line presents a baseline for pricing and it is difficult for our clients to get out of that mindset to see, not only the additional time and labor that goes into custom projects, but also the additional utility they will receive from it, as you mentioned in your article.

6. Barbara Jacobs | August 11, 2011 at 4:52 pm |

   Thanks for the timely article. People often ask me “how much” before anything else, but even in an email I can at least give some options (all wool? wool with silk? ) beyond rug size. Then of course in the world of hand knotted rugs, there’s even a difference in materials and much more. So, I am always happy to present the high points. Long term value also has an emotional component, with the client knowing that something was made Just for them! I call them “heirlooms for the future.”

   Also, we who do custom work also include “value-added service,” well beyond what an out-of-the-box customer experience can offer. I like to also describe that when someone orders one of my rugs, they are dealing directly with the originator of the design and not with a showroom, sales person, or even a rep. So, they “get the artist” along with the end product.

7. Leigh Spencer | August 11, 2011 at 7:39 pm |

   I am so happy you wrote this (and that the link was updated and resent.)

   Quality is one possible aspect of a custom made item that adds to it’s value. The other is that it is exactly what a buyer wants, or close to it. The space in a corner that needs a bench is only so big, but the style a buyer wants only comes from a manufacturer, in a certain size or color, or made with toxic or endangered materials or from thousand of miles away with questionable labor practices.

   Maybe the fact that the buyer was an integral part of the process is the most valuable thing to them.

   Anything made for the first, and possibly only time, requires design and engineering, even some mistakes and head scratching. That adds to the price as a real cost for the craftsperson making it.

   A custom piece is unique by definition and should be valued as such.

8. John Schutz | August 11, 2011 at 8:01 pm |

   Recently a lady called me to inquire about having me make a custom presentation box for a vintage fountain pen she was giving as a gift to a dear friend. I asked her for some information about the recipient, and she said he loves the water. That gave me something to work with. I got the dimensions of the pen and asked her about any favorite woods. After the discussion, I had begun to get some idea of where I wanted to go. This is the result. She was thrilled with the final product, so much so, that I think she would have paid much more than I charged. I had the pleasure of a very satisfied customer and I made something I think is beautiful and will be appreciated by the customer and her friend.

9. Mark Wilson | August 12, 2011 at 8:24 am |

   The business of custom made can sometimes seem as challenging as rocket science, however success can be far more elusive than the answer to an equation. We’re all hitting the target when we discuss issues of value, quality, utility, novelty. One more issue that carries more weight than most of us can carry: status. Buying customers of high quality custom made objects always recognize the value of status. It’s the quality that communicates meaning. It’s the plateau that ambitious makers struggle to reach. One way or another, it underlies the consumer experience. It’s the intangible that closes the deal. But it’s also a subject that makes a lot of us uncomfortable.
   Put status at the center of the discussion of what makes our stuff special and now your talking.

10. Patrick Kennedy | August 18, 2011 at 11:17 am |

    All points are very well stated. A clarification will be helpful to everyone. In using the word utility I am defining it in economic terms, which is referring to the total satisfaction received from consuming a good or service. Utility is a measure of relative satisfaction. In other words, it is a term referring to the total satisfaction received by a consumer from consuming a good or service. Different consumers can receive different levels of utility from the exact same product. One person can look at a chair and view it as a place to sit – nothing more than a glorified orange crate; while another person could see the same chair not only as a seat, but as an elegant form of art. This second person is receiving a higher level of utility from that same chair, he places more value in that same chair and as a result will be willing to pay a higher price.

    The term utility is a subjective term. A consumer’s utility is hard to measure, but we can determine it indirectly with consumer behavior theories, which assume that consumers will strive to maximize their utility.

11. Rob Mielke | December 2, 2011 at 8:36 pm |

    You nailed it, Mr. Wilson.