Charge $200/Hour for Installation: The Service That Doubles Your Revenue

Why Installation Is Your Most Underpriced Service

Most custom woodworkers treat installation as an afterthought—something they have to do rather than a profit center. That’s a mistake. Installation services can add 15-25% to your annual revenue while strengthening customer relationships.

Here’s why charging $200/hour for installation isn’t greedy—it’s appropriate.

The True Cost of Your Installation Time

When you leave your shop for an installation, you’re not just spending drive time and on-site hours. You’re also:

Stopping production on other projects
Loading and securing heavy pieces safely
Managing unpredictable site conditions
Problem-solving in real-time without your full tool setup
Representing your brand in the customer’s space

A four-hour installation often costs you a full day of shop productivity. Factor in travel, setup, the work itself, cleanup, and return travel, and that “half-day job” is really an eight-hour commitment.

Breaking Down the $200/Hour Rate

Your shop rate matters. If your loaded shop rate is $75-100/hour (accounting for overhead, insurance, equipment, and profit margin), then off-site work should command a premium. You’re operating in less controlled conditions with higher liability exposure.

Typical installation rate calculation:

Base shop rate: $85/hour
Off-site premium (50%): $42.50
Travel time factor: $40/hour average
Tool wear and vehicle costs: $15/hour
Liability buffer: $17.50/hour

Total: $200/hour

This isn’t inflated—it’s honest accounting for what installation actually costs you.

What’s Included in Professional Installation

When customers pay $200/hour, they should receive premium service:

Pre-Installation

Site visit or detailed measurements from customer photos
Assessment of access routes and potential obstacles
Timeline and coordination with other contractors if needed
Protection materials for floors and walls during work

During Installation

Professional-grade mounting hardware and techniques
Precision leveling and alignment
On-site adjustments for imperfect walls or floors
Integration with existing cabinetry or trim
Real-time problem solving

Post-Installation

Touch-up finishing if needed
Complete cleanup of all debris
Walkthrough with customer explaining care and maintenance
Documentation photos for your portfolio (with permission)

Projects That Demand Installation Services

Built-in cabinetry: Wall-to-wall installations require scribing to imperfect surfaces, level adjustments, and precise fitting. Customers rarely have the skills or tools for this.

Heavy furniture: A 400-pound dining table needs proper placement, leveling, and sometimes assembly. Wrong handling damages floors and furniture.

Wall-mounted pieces: Floating shelves, headboards, and wall units require finding studs, using proper anchors, and ensuring level mounting. One mistake means holes in the customer’s wall.

Multi-piece installations: Matching hutch and sideboard, or coordinated office furniture, needs alignment between pieces that only skilled hands can achieve.

How to Present Installation Pricing

Avoid the trap of quoting hourly rates that invite negotiation. Instead, estimate the job and provide a fixed installation fee:

Example for built-in bookshelves:

Estimated installation time: 4 hours
Travel and setup: 1.5 hours
Total time: 5.5 hours × $200 = $1,100
Quote to customer: “$1,100 professional installation, includes delivery, mounting, and cleanup”

Fixed pricing eliminates clock-watching anxiety for both parties and shows you’ve done this before.

When to Include Installation in the Base Price

For high-end pieces, consider bundling installation into your furniture price. A $12,000 custom entertainment center with “$1,200 professional installation included” feels more premium than the same piece with installation as an add-on.

Bundled installation works best for:

Pieces over $8,000
Complex built-ins that require installation
Items where improper installation voids any warranty
Customers who’ve expressed concern about the installation process

Training for Quality Installation

If you’re primarily a shop-based woodworker, installation might feel outside your comfort zone. Build these skills:

Fastener knowledge: Understanding when to use lag bolts vs. construction screws vs. specialty anchors
Wall types: Drywall, plaster, concrete, brick—each requires different approaches
Leveling mastery: Using laser levels and shims to achieve perfect alignment
On-site finishing: Touch-up techniques for scratches that happen during installation
Customer communication: Managing expectations when site conditions aren’t ideal

Liability and Insurance Considerations

Off-site work increases your liability exposure. Before offering installation services, verify:

Your general liability policy covers work at customer locations
You have adequate coverage for in-transit damage
Workers’ compensation covers off-site injuries if you have employees
Your vehicle insurance covers commercial use

The premium increase for proper coverage is modest—typically $500-$1,500 per year—and essential for protecting your business.

Documenting for Protection

Before starting any installation:

Photograph existing conditions (walls, floors, surrounding areas)
Note any pre-existing damage in writing
Have customer sign off on installation location
Document any site conditions that might affect the work

This documentation protects you if disputes arise about damage you didn’t cause.

The Revenue Impact

Consider a shop that produces 40 major pieces per year. If 30 of those require professional installation averaging $800 each:

Annual installation revenue: $24,000

At 50% margin (after accounting for time, materials, and vehicle costs), that’s $12,000 in additional profit—without taking on any new customers or producing more furniture.

Making Installation a Competitive Advantage

Not every woodworker offers installation. Many send pieces to the customer’s doorstep and consider the job done. By providing professional installation, you:

Differentiate from competitors who only offer delivery
Ensure your work is showcased properly
Create another touchpoint to strengthen the customer relationship
Generate referrals when guests ask “who installed this?”
Add a significant revenue stream to your business

Installation isn’t a favor you’re doing for customers. It’s a valuable service that deserves professional pricing.