Reply by Lee Barker

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Posted on Pricing Your Work

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Lee Barker

2170 posts in 2875 days

#1 posted 04-27-2012 04:27 AM

Nick’s got a nice formula there, but I don’t see profit. It should be a separate line item, a percentage, and that money means that your business can thrive and grow. If that’s not there, why do it.

Here’s another one:

Material cost + extras cost x 125% plus (hours times your shop fixed costs/hour) plus your labor rate x hours = $123.45. times your profit percentage, say 114%, = selling price.

Your fixed costs should include rent, utilities, insurance, licenses, taxes, tool maintenance and supplies such as stain and glues. And I may have forgotten some stuff there.



-- " his brain, which is as dry as the remainder biscuit after a voyage, he hath strange places cramm'd with observation, the which he vents in mangled forms." --Shakespeare, "As You Like It"

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