This made me wonder what this means for violin prices. When competition is fierce, sellers are forced to sell their products at cost.
So as a nerdy number cruncher, I tried to estimate the cost of making a handmade violin.
Based on my calculations (see bottom of post), the total cost of making a violin is between $5,000 and $11,000:
- US if luthier is making an average wage = $10,943
- US if minimum wage = $5,213
- Italy if luthier is making an average wage = $8,058
- Italy if minimum wage = $6,360
Big caveats:
- These are REALLY ROUGH estimates
- By costs, I mean total cost inclusive of the wage of the luthier. So violins sold at cost would still compensate the luthier for their time
- I have used national average and minimum wages, which does not account for the fact that most luthiers with a good reputation can make much more. It also does not account for regional variations based on which state/city the luthier is based
- I’ve assumed overhead is only covered by violin making. In practice, overhead might be shared by doing repairs and having a retail business
Obviously, good luthiers can charge a premium on top of costs. But hopefully, this gives you a sense of how low violin prices can go even in a buyer's market.
Detailed calculations:
Labor
Time required to make violin: 250 hours, net (source: old thread on maestronet)
US Average Hourly Earnings of All Employees: $30.17/hour (source: St Louis Fed)
US Labor cost (if average wage) = 250hours*$30.17/hour=$7,543 per violin
US Minimum Hourly Wage: $7.25/hour (source: US Departement of Labor)
US Labor cost (if min wage) = 250hours*$7.25/hour=$1,813 per violin
Italy Gross Monthly Average wage: EUR 2,446/month (source: wikipedia) or ~= USD 35,774.95/year
Assume 260 working days, of which 20 are holidays, and 8 hours work per day = 1,920 hours available to work per year
Therefore, Italy Average Hourly wage is = USD 35,774.95/1,920hours = $18.63hour
Italy Labor cost (if average wage) = 250hours*18.63/hour=$4,658 per violin
Italy Minimum Hourly wage = does not exist.
Use French minimum wage as proxy = EUR 1,554.58/month (source: eurostat) or ~= USD 22,739.18/year
Therefore, Italy Minimum Hourly wage is = USD 22,739.18/1,920hours = $11.84/hour
Italy Labor cost (if min wage) = 250hours*$11.84/hour=$2,960 per violin
Materials
Wood for back, top, neck = EUR 120 ~= $150 (Source: Golden Tonewood)
Ebony fingerboard, nuts = $50
Fittings, bridge = $100
Strings = $100
Total materials = $150+$50+100+$100=$400 per violin
Overhead
Business overhead (rough guess): $2,000/month
=$1,200/month workshop rent
+$500/month wear on tools and equipment
+$250/month utility bills
+$250/month misc overhead (e.g. marketing, business license, insurance)
Spread over 8 violins per year = $2,000/month*12 months/8 violins = $3,000 per violin
Calculating totals
US if luthier is making an average wage = $7,543 labor + $400 materials + $3,000 overhead = $10,943
US if minimum wage = $1,813 labor + $400 materials + $3,000 overhead= $5,213
Italy if luthier is making an average wage = $4,658 labor + $400 materials + $3,000 overhead= $8,058
Italy if minimum wage = $2,960 labor + $400 materials + $3,000 overhead = $6,360
Sources:
- Eurostat - checked on 05/31/2021 https://ec.europa.eu/eurostat/databrowser/view/earn_mw_cur/default/table?lang=en
- Golden Tonewood https://www.goldentonewood.com/
- Maestronet https://maestronet.com/forum/index.php?/topic/333612-how-many-hours-go-into-the-making-of-a-violin/
- OECD - checked on 05/31/2021 - http://www.oecdbetterlifeindex.org/countries/italy/
- St Louis Fed - checked on 05/31/2021 https://fred.stlouisfed.org/series/CES0500000003
- US Departement of Labor - checked on 05/31/2021 https://www.dol.gov/general/topic/wages/minimumwage
- Wikipedia - checked on 05/31/2021 https://en.wikipedia.org/wiki/List_of_European_countries_by_average_wage
As an individual maker working alone, doing everything myself, I'm lucky if 50% of my work time is "bench time".
And the cost of Living in Italy is higher than in the USA so you have to charge more for labour to have the same buying power in Italy.
If someone is making something that competes vigorously with a $1,400 Hopf copy, he won't be making them for very long. Conversely, customers are unlikely to pay as much for a new instrument as an Italian antique of the same quality.
I think the dire state of orchestras will have a trickle down effect on prices of modern instruments.
Of course, that's if no one gets sick or pregnant, in which case paid leave is mandatory, in the latter case minimum 5 months by law, often more than a year.
However, the employee still gets 13 months of pay every 12 and matures fully paid vacation time (about 5 weeks per year) as well even if sick, or caring for a newborn. And, if you need someone to fill in, the business pays 100% of the new employee's cost.
When one of my office staff went on maternity leave, I didn't see her for 17 months. The temp I had to hire alone cost me over $60K and then when I didn't need her any more she sued for unjust termination. Ah the joys of business...
Once when I was in his shop, he let me try a violin he had built by hand. I don't know much about violins, having pretty much only played the three I already own. IMMEDIATELY I came to hear what it means to say some violins are a LOT BETTER than others. Oh how it rang sweetly when I did anything with a bow on a string! I so remember those few minutes of playing, knowing that if ever I get any serious money I will commission or buy a violin he builds.
"How much?" I asked. He said something like $35,000. I don't remember exactly what he wanted for it. But finally I understood what it means to have a fine luthier hand-make a fine violin. I'm sure it was worth what he wanted. Everything about it was gorgeous, not just the sound, but the fit and finish of every joint and surface.
Were I a professional violinist (or wealthy amateur of some accomplishment), I'm sure I'd get more experience in that market of genuinely fine violins, and possibly come to adjust my judgement of his work and price, though I doubt it would be to his detriment. I simply cannot imagine a better violin than his!
That luthier is Mark Hough in Clinton CT USA.
But having only once played a violin beyond my student horizon, I know it's a big violin world out there (not to mention violas and cellos and basses, and not to mention consort and other antique-style instruments). Mark estimates my Chicago violin would sell between $6,000 and $10,000, and hasn't yet seen my Charlie Ogle Beijing workshop baroque-style violin, for which I paid $2,500, and he graciously complimented the workmanship-for-the-price of my Romanian-made Gliga "Genial" violin I got used for $250 in a small guitar shop. So that's my experience with student-level violins.
My conclusions so far: my violins at student prices are good enough for a student like me, but if I ever get big money I will be glad to spend $35,000 or higher for an instrument that transports me to a new sound world. The article above and this discussion only confirm in my mind that such prices can be justified and worth it if you've got it.
That said, my team is fantastic and without them my cases couldn't be made. :-)
However, in Italy the payroll taxes are already so high that the employee takes home only a third of the gross cost of labor to the business, so any payroll tax increase would only lead to greater unemployment.
However I must say that in Italy there have been many cases of people with grave anguish and suffering who have taken their own life and then were denied a religious funeral.
To this I would add that the New Testament quotes Jesus as saying that "it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God". By common (and inappropriate) definition in Italy, anyone who runs a business is "rich".
I guess I was way off in my initial cost estimates. Accounting for employee overhead and taxes, you probably have to increase my estimates by 50% to 100%. So that's like $15,000 to $20,000 in costs per violin if the luthier is on an average wage.
There are some violins sold by one of the popular online violin shops (not naming names) that are fully American handmade violins for around $10k. You can also find some contemporary Italian violins (including from Cremona) being auctioned on Tarisio/Bromptons etc. at the $10k mark - and that's before the auction house takes their cut.
Given the cost is more like $15-20k, am I right to be suspicious about these violins and how they are made?
Yes.
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While I am not in the instrument trade, my business is unique and relies on highly skilled personnel and specialized tooling. Whenever I have a client questioning costs etc.. I invite him/her to put on my shoes and come work with me for a day or two. It opens their eyes to how much they don't know or understand about being a small business owner and contending with the everyday challenges and obstacles in a world that does not generally appreciate artisans.
Now, go adjust your sound post 100 times and tell me what the average time it took to get it right!! And that is just one aspect to consider.