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Reply by Sawkerf

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Posted on not sure what to charge

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Sawkerf

1730 posts in 1815 days


#1 posted 01-07-2012 06:36 PM

Are you doing this as a business, or just trying to make a couple of bucks from your hobby?

If you’re just trying to pick up a bit of extra cash, try pricing your work at some multiple of the material costs. Using a multiple of 1.5 – 2.0 should easily give you a “profit”, but you’ll probably find that you’re working for around minimum wage.

If you’re going into business, it’s a totally different ballgame. For that, you need to determine the cost of being in business (taxes, licenses, insurance, etc), an adequate hourly wage for yourself (and any employees) including self employment taxes, etc.

A multiple of 3.0 – 3.5 would probably get you in the ballpark, but an hour or two with a CPA would help you understand all the parameters that go into determining a shop rate.

-- Adversity doesn't build character...................it reveals it.


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