This was an interesting question. If i were going to make $100 pipes, how would i do it? Easy enough- buy precut stummels from my Italian guy for $12, throw in a factory stem for $4.Thirty minutes to sand, 30 minutes for finishing, about $20 in materials including sandpaper and another $20 to cover the cost of equipment and shop- grand total of around $40.
The question is what is my goal? I want to be a good pipemaker making 200 pipes per year in 4 years. I just placed a $1600 order with my Briar supplier for 54 pieces of top grade plateaux briar (we also visited his family in Calabria, Italy last fall to get a relationship that helps ensure i get the best briar he offers, but i won't figure that cost into the equation). I'm wating on an order of SEM rod stock to arrive from Germany- $500 for 5 one meter rods- some beautiful colors that nobody is offering. Most of my pipes include ivory, horn or exotic wood inlays that add to the cost. Every pipe comes with a great leather bag from Neil Flancbaum for $12. I attended the Vegas show, the Chicago show, and will be at the Kansas City show and the Nashville show- figure $1500 for each show- $6k total. Last year, i spent $5k on tooling, and will spend about the same this year. With this approach, I'm at around $52 per pipe in raw materials, $6000 for shows- at a production of 50 pipes a year, that is $120 per pipe., $5k per year for equipment amortized over 50 pipes is $100. If my math is correct, that works out to about $272 per pipe. My pricing in Chicago was $255-325 per pipe and I had a good show.
In the next 2 years, i hope to spend some shop time with a couple of the great pipe guys here and in Europe- absolutely essential to be able to be able to improve on the limited skills I have at this point, ...
As a business, the math doesn't work unless you're able to charge a minimum of $400 or more per pipe and produce 200 pipes a year...the great news, is that i make a good living that allows me to enjoy this passion for making pipes...i also get to hang out at some great shows, meet some fascinating people, and smoke some great tobacco with friends...and that's priceless...(hard to believe i started down this slippery slope last May when i spent $150 to buy some old equipment that came from a pipe repair shop)