Tue, Jun 15, 2004, 6:46am lid (J.=A0Clarke) claims:
When I was trying to explain packing costs to the guy I completely
forgot driving it down to UPS or FedEx, which these days can easily be
3-4 bucks worth of gas, not to mention amortized maintenance, tire wear,
etc.

Interesting statement. Interesting too, you would assume I'm
unaware of all that, even with you "explaining" to me.

One thing I make, wood, finish, hardware, etc., materials cost is
about $5.65. I say about, because it's a bit hard to come up with down
to the penny figures based on the exact amount of finish used, and so
on.

Packaging, new box, packing material, label, tape, etc., figures
out to about $4. Not the exact penny, because I don't measure each
length of tape. Then the shipper's cost averages $11.85, which makes a
toal shipping (or whatever you want to call it), cost of $15.85. If
it's within about 200 miles, I make about a 15 cent "profit" on the
shipping. But, once it goes further than about two thirds of the way
across the country, I "lose" a quarter or so. It averages out.

I don't put food on the table by this, it's a small sideline, so I
add the $5.65 materials cost to the $15.85, then I figure in the
"profit" I want, and that is the total. Yeah, yeah, the "profit" is the
hourly figure I want to make, times the actual time working. It goes in
my pocket, so I'll call it profit if I want to.

I'd be using the shop for something anyway, so I don't figure in
overhead - depreciation of the tools, electricity, and so on. I go to
town every day anyway, so I don't figure in mileage, wear and tear on
the truck, and so on.

Yeah, I already knew about all that stuff. Years back I went thru
the county library and probably read every book on starting and
operating a small business they had. Then I went on and got about every
bit of information the SBA had, and read them too.

So, yeah, I could charge $3-4 gas for shipping something. Well,
that's if my truck got a lot worse mileage than it actually does, and I
went to the next town over to ship the stuff out. But, I don't try to
squeeze every nickel out of a transaction I can. Even if I was making a
living off it, I'd still be going to town every day, so I doubt I'd add
more than a minimal fee for gas, depreciation, etc., but, even if I did,
I'd check the mileage to the tenth of a mile, and that'd be the charge,
period. Electric in the shop, depreciation of the tool, etc., you bet
I'd figure that in, but only as close to the minute as I could; it'd be
covered in the purchase price, including material cost. Shipping is
totally separate, and I might figure in the time taken to package
something, if so, I'd time it down to the minute, and not charge more.
I've also done a fair amount of time-study, work efficienty, etc., in my
working life. Sometimes it's just more fun, not being so efficient.

You realize, of course, all this would be for a fixed price item.
Sales on eBay, with bids, changes the rules. LOL

JOAT
Use your brain - it's the small things that count.
- Bazooka Joe