Sign in to follow this  
WoodlandRenovations

Forgetting the Sandpaper

Recommended Posts

Hello,

Me and my wife are starting to do some commission jobs on the side on the last few we have sat down and really crunched the numbers or so we thought. What we have been forgetting to add is the small things glue, brads, sandpaper, or even putting those hours on the tools that wear them down so on and so on. Just wanted to know how everyone else is going about it? Thanks in advanced.

David

Share this post


Link to post
Share on other sites

I usually don't try to hard to get my costs documented down to a precise number on individual jobs.  I figure that if my pricing is tight enough for that to be critical I am working on too small of a mark up.

I don't ignore those costs.  I just don't try to keep track of what they are for each project with any level of precision.  On the other hand I occasionally roughly do the math to have an idea of how much of a factor all of the incidental stuff is in general.  I then keep that in mind when pricing.

If I was keeping itemized cost lists for each project, all of that stuff would be just one line item, and probably a percentage of the whole job.

  • Like 1

Share this post


Link to post
Share on other sites

I am not a pro as I do not do this as my sole source of income... I do take on commissions, and this is how I do things...

I have a simple pricing structure.

Material cost + (hourly rate x hours) = Base Price

Base price x shop rate = Client price (shop rate is a percentage, and is the same on all builds)

For an example, small numbers it's early :)

MC $100 + (hr $25x2 hours) = $150 bp

$150 bp x 120% sr = $180 client price 

These are not my numbers, but an example to keep the math simple.

There are certain things that are charged differently.

Also, a common sense check is always in order. If your formula has you selling a piece at let's say $500, and you find out that others are selling it for $200 something is off. If you are asking for $500 and others are selling for $1200, then something is also off.

I do not have a cost associated with marketing and such, if you do adjust accordingly.

The things people mess up on the most is hourly rate and how long it will take them to make it. 

 

Share this post


Link to post
Share on other sites

Ok, then for me to build a small box:

MC - $20 + ( hr. $25 x 16 hrs.) = $420 bp.

Looks like I need to find a source for cheaper material ?

  • Like 2

Share this post


Link to post
Share on other sites

I keep it simple as well - i simply charge an hourly rate plus materials.  My rate includes consumables, clean up, etc

I do like mels approach though.

Edited by Pug
  • Like 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this