Equipment Maintenance and Replacement: Tool Lifespan and Depreciation
Table saw blades wear out. Chisels need sharpening or replacement. Jointers and planers need maintenance. If you're not budgeting for equipment upkeep, you're losing margin as quality suffers. This guide teaches you to calculate and budget for equipment costs.
Common Tool Replacement Costs
Saw blades: $30-$100 per blade, need replacement every 100-200 hours of use or annually
Sandpaper/sanding discs: $5-$15 per sheet/disc, frequent replacement (30-50 pieces per month typical)
Chisels/tools sharpening: $5-$15 per tool annually, or $50-$100 for professional sharpening service
Jointer/planer maintenance: $200-$500 annually (knives, cleaning, calibration)
Hand tool replacement: $10-$100 per tool, occasional replacement as tools wear or break
Total annual tool/maintenance budget typical: $1,500-$3,000 for active production woodshop
Budgeting for Tool Costs
Annual Tool Budget Method
Track actual spending for 3-6 months: Record every tool purchase, sharpening, replacement
Annualize: Monthly average × 12
Example: Monthly spending = $150. Annualized = $1,800/year
Add to overhead: $1,800/year ÷ (number of pieces made) = cost per piece
If you make 100 pieces/year: $1,800 ÷ 100 = $18/piece tool cost
Include this in your pricing formula: Material + Labor + Overhead (includes tools) + Markup = Retail Price
Preventive Maintenance = Cost Savings
Spend $100 on annual maintenance to prevent $1,000+ in emergency repairs:
Sharp tools = better cuts = less waste: Dull blades require more passes, burn wood, reduce quality
Clean tools = longer lifespan: Dust and pitch buildup degrades performance and life
Calibrated tools = quality: A drift jointer produces bowed boards. Cost of recalibration ($50) prevents waste on 10+ boards
Key Takeaways
✓ Track actual tool spending for 3-6 months to establish baseline budget
✓ Typical annual tool budget: $1,500-$3,000 for active woodshop
✓ Calculate cost per piece: Annual tool budget ÷ pieces made
✓ Include tool costs in pricing formula as part of overhead
✓ Preventive maintenance ($100/year) prevents expensive repairs ($1,000+)
Maintain Tools. Protect Margins.
TrueCraft tracks tool costs and maintenance schedules.
Start Your Free Trial