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Jack-of-all-trades - JOAT
 
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Default HOW DO YOU GUYS FIGURE PROFIT?

%^&*( My power just blinked, been doing that all day, including
about 2 hour power outage, from the hurricaine, so have to start this
response over.

Well, certainly learned a lot with that question. Most of which I
will never use, but interesting just the same. I decided to keep this
thread a bit shorter, but making my replies in just this one post.
Below are the posts I felt it appropriate to reply to:
++++++++++
Wed, Sep 17, 2003, 6:21pm (EDT+4) From:
(Bill=A0Thomas)
Greetings,
Over time I have noticed the cost of materials approximately equals the
cost of labor for anything anyone does for me. snip

Might be OK for figuring on paying for a new roof, but that would
mean I would be selling some things for maybe $6. My labor is worthmore
than that.
+++++++++
Wed, Sep 17, 2003, 9:32pm (EDT+5) From:

(Andy=A0Dingley)
What's stumping me is how to pick the pricetag. I can any (theoretical)
profit I like, if I just set the price high enough. OTOH, this may well
mean I don't sell any
I've heard a rule of thumb way is by pricing you stuff. If you
sell out right away, you are selling too low, raise prices. Continue
this until no one will buy, then lower prices to where you can keep up
with the demand.

I'm not really sure I would be comfortable with that, and not sure
how it would work.
+++++++++=A0
Wed, Sep 17, 2003, 9:12pm (EDT+4) From:

(Leon)
snip I multiply materials times 5 to come up with manufactured price
and that is CHEAP. snip

Now, that sounds pretty reasonable.
++++++++++
Wed, Sep 17, 2003, 11:25pm (EDT+4) From:

(danh)
Try Google, snip

What's a Google?
++++++++++
Wed, Sep 17, 2003, 9:36pm From:
(Silvan)
snip Of course, in order to actually _sell_ anything, I've had to mark
it down to cost-of-materials + $5.

If I had to sell something that low, I would make something else.
My time is certainly worth more than that.
++++++++++
Wed, Sep 17, 2003, 6:47pm (EDT-3) From:
(Luigi=A0Zanasi) who is apparently an accountant, tax
dodger, or both, creeps out into the twilight and says:
snip E.g. what is your time worth and what could you earn in interest
if you left your money in the bank instead of buying equipment. snip

Well, I figure my time is worth whatever I can get paid for it.
But, I don't understand, what do you mean, instead of buying equipment?
The only other valid option would be buying materials.

In your case, accounting profit is irrelevant (except for your tax
return). snip

Actually, not even that. I don't figure I will be making enough to
pay taxes on. One of the few advantages of a disability income - I'm not
making enough to pay taxes.

You don't want to or can't work for anyone else,

Both.

and presumably enjoy making the pine cone turkeys snip

May the Woodworking Gods bless you. I had completely forgotten
about those. My fortune is made, if I can just find enough pinecones.

He cannot deduct the value of his labour as a cost for accounting
purposes, so there is no tax loophole: he has to pay tax on his labour.
snip

So, sounds like the guy was complicating things, for no good
reason.

All this is my professional opinion, and worth exactly what you're
paying for it.

And, I do thank you for it, and to show my appreciation, my check
is in the e-mail.
++++++++++

Got some helpful hints, and a lot of info I didn't ask for, so all
in all, it's definitely been an interesting read.

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/