How should I price my coops?

Discussion in 'Coop & Run - Design, Construction, & Maintenance' started by bnentrup, May 25, 2010.

  1. bnentrup

    bnentrup Chillin' With My Peeps

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    May 5, 2010
    Central Indiana
    Guys,
    I have started building chicken tractors for spare change (was in construction a few years back). I have just completed another tractor/ark and want to see what I should price it at

    -6'x8' with a 2'x8' coop/nesting area.
    -will probably include 2-nesting boxes giving 4-total nest areas. Will likely build a ladder for the coop access.
    -2 hinged doors for easy egg access.
    -fully enclosed (roof has netting behind the panel as well for extra protection).
    -well built but light enough for 1-person moving.

    At this time I likely have 14-hours in this unit. I hope to decrease my time invested in the future, since I spend a good amount of time in engineering/changes etc.

    I am not trying to get rich, but rather supplement my current income. I do not want to price too cheaply, but also want to establish a good fair market price for selling my coops in the Greater Indianapolis, Indiana area.

    Your input greatly appreciated!
    [​IMG]
    [​IMG]
     
  2. Domestic_goddess

    Domestic_goddess Chillin' With My Peeps

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    I would do your research for comparables and price it accordingly! The real issue is with the economy the way it is, everyone is looking for a good deal to save money. Good luck, nice little coops!
     
    Last edited: May 25, 2010
  3. calista

    calista Chillin' With My Peeps

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    I'd check into postings on your local CL for those comparables Domestic Goddess mentioned, and also talk with your feed store to ask what THEY think the market would bear. (The feed store might also agree to display what you build on consignment.)
     
  4. bnentrup

    bnentrup Chillin' With My Peeps

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    May 5, 2010
    Central Indiana
    I was thinking the same thing.. my goal is to keep a range of coops from $200-300 total pricing. With not giving my business plan away, this still yield a $10-15 per hour payback on my time if I build 2 at a time. That may not sound like much $, but I work at home and able to keep my phone handy while building (killing 2-birds with one stone!) -

    Anyone feel that the design shown here at a price of $275 is too much too ask?
     
  5. Orchid

    Orchid Chillin' With My Peeps

    May 10, 2010
    North Central MN
    Just like any other business, you have to figure out what your overhead is before you know how much to charge. First, of course, you have to cover your material cost. Then you have to decide how much your time is worth. And don't forget the time, fuel and wear and tear on your vehicle you have into running to the lumberyard (or wherever) to get your supplies. I would guess you'll be selling them on CL primarily, but if you're going to do any other kind of advertising you'll need to figure the cost of that in too, even if it's just gas and time driving around hanging up flyers you print out at home. Don't forget the cost of ink and paper. [​IMG]

    All these little costs can add up in a hurry and if you don't figure them into the price, you may be selling coops nearly for free without even realizing it! That being said, I would expect to pay around $300 for a ready-made coop of this design.

    No offense intended, but I wouldn't buy that coop for a couple of reasons. #1 It has chicken wire around the run instead of hardware cloth, and a dog could get a pretty easy chicken dinner. #2 The "upstairs" has no visible ventilation that I can see, other than where the roofing meets the frame and I would consider that more of a "draft" than ventilation. #3 It could make a nice summer tractor with a couple of modifications, but what appears to be a metal floor combined with the metal roof and no insulation seems like it could get really hot and/or really cold. Just my .02, with a couple of small mods it could be a pretty sweet little tractor! [​IMG]
     
  6. calista

    calista Chillin' With My Peeps

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  7. Penturner

    Penturner Chillin' With My Peeps

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    Here is how I price items without regard to demand, craftsmanship or artistry or custom work. Those cost more.
    Materials times 3 plus labor.
    So set an hourly rate you want to make. time how long it takes to make 2 (You will get faster so try to be realistic on that point for setting final price) then calculate actual materials cost.
    Examply you want $20 an hour for your time and it takes 14 hours to make 2 (or 7 hours per tractor.
    7X20= $140
    materials cost $50 per tractor
    50x3=$150
    150+140= $290 per tractor.

    You can lower this price by 1. using lower cost materials. In reality there is usually not enough of a saving here to really spend time pursuing it. if the opportunity comes along to get corrugated roofing at a great price, so be it. but at $20 an hour searching for cheap materials you end up going backwards really fast. 2. getting faster at building them. This is where you can actually shave off some dollars. better equipment methods familiarity, production type work (Cut parts for 20 rather than 2) and that sort of thing is one of the best places to look for cost savings.

    Now, Why materials times 3?
    materials times 1 is simply to give you back the money you spent on the materials in the first place.
    the second materials is to be able to buy materials for the next one and to buy materials over time to make new and improved versions and your next great idea. that sort of thing.
    The third materials pays for all the other costs that you didn't include in the real materials costs. things like electricity, saw blades, nails staples and the ability to purchase new and better equipment etc.basically look at your business as an employee and it has to be paid also. that third material cost is your business take.
     
  8. Netherworldtaken

    Netherworldtaken Out Of The Brooder

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    Materials cost plus your time is what I have been told when selling woodworking projects. What does that mean? Well some have said double the cost of your materials others have said pay yourself an hourly wage that you think is fair and pass that along to the buyer. If it took 8 hours to build 8x your hourly wage. I have had success with materials x2 in the past with art and woodcrafts.
     
  9. bnentrup

    bnentrup Chillin' With My Peeps

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    Central Indiana
    Quote:NO offense taken at all. Those are all points that I have considered myself.. The floor and roof are plastic (not steel) - which still does not insulate well. The mesh vs cloth is something that I want to offer for a pricing option. Second to that, I had a large roll of mesh that I needed to use. My future models will probably still use the poly floor, but will probably go to a completely wooden roof. I have been doing others using pine shake or lap style roofing. This is the first that I have done the poly roof and really not too impressed. I figure the floor would be insulated with straw and suffice in most cases for winter storage (If I can figure the roof out). I will probably install vents on the side doors for airflow, and might put a damper on there for winter adjustments. Indeed, this still may not be a good winter design- but I will build many more and evolve.

    thanks for your input.
    b
     

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