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Calculating expense.
Posted by:
Walker_Nelson
(69.198.19.---)
Date: January 27, 2011 03:29PM
This is my first year as a business owner and had a quick question.
When factoring expense cost on the rod...How (if any) are you formulating rod finish and thread? Is that something you worry about adding into the build cost? Just curious about this. Thanks guys! Re: Calculating expense.
Posted by:
Tom Kirkman
(Moderator)
Date: January 27, 2011 03:40PM
I would suggest tacking on some small, consistent fee to each rod built, say $10, for shop supplies.
.............. Re: Calculating expense.
Posted by:
Chris Richer
(---.agr.gc.ca)
Date: January 27, 2011 03:44PM
search on "additional cost" in the search feature and specify all dates. Chris Richer Iroquois ON Re: Calculating expense.
Posted by:
Walker_Nelson
(69.198.19.---)
Date: January 27, 2011 03:45PM
Thats kind of what I thinking..Just a little something to cover all the small things that get diminished slowly each build.... That sounds good,thanks Tom
Cool Chris,Ill look that up now...Thanks Edited 1 time(s). Last edit at 01/27/2011 03:45PM by Walker_Nelson. Re: Calculating expense.
Posted by:
bill boettcher
(---.dyn.optonline.net)
Date: January 27, 2011 04:04PM
It is kind of simple
Parts Ant thing you buy from the supplier: blank guides cork rings seats plus shipping Labor How much do you want to glue rings together -shape , ream glue on the blank- Wrapping a guide foot One color with a trim more colors ?? Decals You make them yourself or buy But wrap or weave Time $$ If you will back up your work - that is worth some thing Add it all together - but think of it - don't for get any thing Bill - willierods.com Re: Calculating expense.
Posted by:
Jim Gamble
(97.106.17.---)
Date: January 27, 2011 04:31PM
My pricing is simple ... retail of components + basic assembly labor + extra bling work + shipping to customer + FET + sales tax.
My thought process is that buying at wholesale and selling at retail allows me to "absorb" basic shop supplies AND it keeps my prices fair - SCVs are more profitable than SCIIIs, as they should be for the capital risk involved. Re: Calculating expense.
Posted by:
Fred Yarmolowicz
(---.hsd1.nj.comcast.net)
Date: January 27, 2011 07:37PM
Not that it matters to me but you add the FET after the shipping? Freddwhy (Rapt-Ryte) Re: Calculating expense.
Posted by:
Lane Pelissier
(---.sub-174-253-112.myvzw.com)
Date: January 27, 2011 08:01PM
Guys he didnt ask about how you price the components or how much you charge for labor. He asked how you charge for consumable items like thread, tape, epoxy, paper towels etc. I do like Tom says. I tack on $10 as a consumables charge to every rod.
Lane Re: Calculating expense.
Posted by:
Jim Gamble
(97.106.17.---)
Date: January 27, 2011 09:58PM
Fred Yarmolowicz Wrote:
------------------------------------------------------- > Not that it matters to me but you add the FET > after the shipping? FET is on the bottom of the invoice, along with sales tax. However, both are calculated on the sale price (no shipping) and independently of each other (not compounded). In respect to a clarification of my "consumables fee" ... I don't have one. I simply have enough in the basic pricing equation to consume the consumable expense (pun intended). Jim - Re: Calculating expense.
Posted by:
Eric Viburs
(---.gc.usar.army.mil)
Date: January 28, 2011 10:27AM
I break it all out in an estimate and charge a flat 3% for "shop fees" to cover mixing cups, sticks, sand paper, and so on. I also charge $3.00 per for thread cost. It is simple to "overlook" $10.00 per rod in small things and over the year it adds up. This is just me but I like to see every expence broken out, think the buyer does too as it helps explain the cost. As a buy myself I like to see itemized things over the "total" cost of something. Re: Calculating expense.
Posted by:
Ken Preston
(---.bltmmd.fios.verizon.net)
Date: January 28, 2011 11:56AM
I use the KISS method. Price of retail parts plus 60% for assembly (covers threads, epoxy, mixing cups, brushes, cp, etc) plus postage. Re: Calculating expense.
Posted by:
Chuck Mills
(---.grenergy.com)
Date: January 28, 2011 01:18PM
Jim Gamble Wrote:
------------------------------------------------------- > My pricing is simple ... retail of components + > basic assembly labor + extra bling work + shipping > to customer + FET + sales tax. > > My thought process is that buying at wholesale and > selling at retail allows me to "absorb" basic shop > supplies AND it keeps my prices fair - SCVs are > more profitable than SCIIIs, as they should be for > the capital risk involved. Mine is very similar. Just work it into your labor fee. I break it out on my spreadsheet just because I always have. Question: Do most of you include the shipping into your parts cost? I looked at several years worth of invoices and found that my average shipping cost per order was 9% of the parts cost. I try to order 6 or 8 blanks at a time. _________________________________________ "Angling is extremely time consuming. That's sort of the whole point." - Thomas McGuane Re: Calculating expense.
Posted by:
Ken Preston
(---.bltmmd.fios.verizon.net)
Date: January 28, 2011 03:12PM
I tried to figure in the cost of shipping - but changes in shipping fees have made that more problematic - and as I understand it all the shippers are about to raise costs again (and add more "balloon" fees). Re: Calculating expense.
Posted by:
Alex Dziengielewski
(---.aik.sc.atlanticbb.net)
Date: January 28, 2011 07:32PM
Shipping is an add on. They have the option of picking it up - even if they live 5 states away.
Oh yeah... when you charge for shipping - don't forget to include the price of the tube or you are out $3 - $4. ----------------- AD Re: Calculating expense.
Posted by:
Jim Gamble
(97.106.17.---)
Date: January 28, 2011 09:47PM
I do believe Chuck is asking about inbound shipping costs. Again, my practice has been to charge retail on components. This allows for inbound freight, supplies, business licenses, shop space, etc. IMO, the profit on the components covers operational expense and the build fee covers time.
Jim - Re: Calculating expense.
Posted by:
Kyle Robinson
(---.cdrr.qwest.net)
Date: January 30, 2011 12:53PM
Walter, as you can see, there is a lot of ways to take the costs into consideration. The cost of thread, finish and labor are part of the total cost for sure. A lot of builders have a set fee per build, per guide, all good ways to figure it. I have a spreadsheet that I have sent to a lot of builders. It helps a person determine some costs, with markup, and pricing taken into consideration.
If you are interested, feel free to email me, and I will be glad to forward you a copy. Kyle Robinson Sorry, only registered users may post in this forum.
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