your looking not actually for profit but the figure to use. I learned it as
Markup. you markup in hopes to make a profit.
I learned in Carpentry class that contractors make anywhere from 15%-35%
markup (depends on the market and who you do it for)
Most want to make a certain percentage profit (often between 15-25% of the
whole)
The mark up doesn't necessarily mean the profit. If you estimate after the
fact it often does. But if you have to Estimate before hand it usually
doesn't
Anyway to markup. how much you really want to make?
15% is not unreasonable and will at least cover simple overhead.
Cost divided by (1.00 - overhead percentage)
in otherwords
Cost (of materials, labor) divided by .85 = final mark up price.
--
Young Carpenter
"Violin playing and Woodworking are similar, it takes plenty of money,
plenty of practice, and you usually make way more noise than intended"
"Jack-of-all-trades - JOAT" wrote in message
...
Not, not trolling. This has been nagging me for awhile. As many
of you know, I'm on a fixed income, and I don't do this for a living. I
do sell something once in awhile tho, and I know how I figure profit.
Because I'm not doing this for a living, I don't figure in tool
wear and tear, depreciation, electric, etc,, simply because I'm going to
be using the tools and electricty anyway. I also don't figure in any
R&D time, or R&D materials. Again, because I'm not doing it for a
living. I do count in price of materials - wood, finish, any hinges,
etc. And, try to figure a reasonable price for whatever, based partly
on materials cost, but mostly labor. The labor is based on actual time
spend working on something, and doesn't include glue or finish drying
time.
OK, so based on that, what I would call profit, is anything over
materials cost.
I'm curious, because quite awhile back, I read an article about a
guy who makes wood stuff, for a living, and specializes in stuff like
chopsticks. No prob with that, if people want to pay the $25 for a pair
of chopsticks, up to them. The article covered all the guy's expenses,
and how he figured all this. There was the usual overhead, elec, etc.,
tool depreciation, etc. Then there was materials cost. Even with
expensive exotic wood, the actual wood cost was low,very low. Maybe a
dollar or so, for even the realy expensive woods, but probably an
average of about 25 cents a pair, and apparently he didn't use anything
like poplar, maple, etc., you know, the cheap stuff. Then the guy
figures in the cost of the sawyer, who cuts the pieces, at $75.00 per
hour. He is the sawyer. Then, there was labor, at $35.00 per hour, to
shape the chopsticks. Only took something like a minute or so for a
pair. Again, he did the work. If I recall right, he figured in labor
for finishing them too, and again, his labor. So, after all is said and
don't, this guy only figured something like about $5 or $10 profit on
each pair. He didn't count in the sawyer fees as profit, even tho he
was the sawyer, and pocked the money.
So, am I missing anything on how I figure profit? Or, is this guy
just trying to find every tax loophole he can?
And, not to knock the guy's chopsticks, but, personally, I've eaten
with chopsticks, quite a bit actually, and if I wanted a pair, I'd just
go to an Oriental store and buy some of their nice plastic ones. The
wood ones I've seen tend to warp after awhile.
JOAT
Atheism is a non-prophet organization.
Life just ain't life without good music. - JOAT
Web Page Update 15 Sep 2003. Some tunes I like.
http://community-2.webtv.net/Jakofal...OMETUNESILIKE/
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