Need some repair prices

[Steve Brewer]

Go get your car fixed and see what they charge.I have a shop rate of 45.00 an hour plus materials.

Steve

[mulefool]

I think comparing our rate to a car mechanic is a pretty good way to go. something I keep wanting to do is have my shop rate posted along with a minimum rate. Maybe more for my self than the customers. Seems like if it's in writing I might do a better job of holding to it.

$$hobby, even though you spend more time writing all that stuff down and taking notes, in the long run you will probably save money in not having to reinvent the wheel when you get a similar job, or are trying to figure a price quote. I keep making a stab at doing that, but don't follow through as often as I should. Chris

[stelmackr]

Add the cost of all supplies you use, cost of your building/store, your advertising. Add what you think your hourly time is worth. If it is a hard piece or the customer is a problem, add in a inconvenience factor...

1. Cost of materials plus shipping costs to me

2. Cost of leather waste (off cuts, approx 30%))

3. Cost of consumables (i.e. thread, needles, glue, dye, wax, finish, etc.)

4. Cost of labor (per hour)

5. Cost of shop (heat, light, space)

6. Cost of accounting and accounting software

7. Cost of filing city, state and federal taxes

8. Costs of shipping (packaging material, container, shipping costs)

9. Costs of transportation to get supplies, leather, and for shipping

10. Cost of storage and inventory

11. Cost of FICA, Social Security, etc.

12. Cost of Health Insurance

13. Cost to comply with government regulatory expenses

14. Cost of advertisement

15. Cost of capital equipment investments

16. Cost of bank interest of business investment

17. Cost of labor

18. Cost to create a new pattern

19. Retirement investments

20. Cost of paper for keeping track of costs.

…and what’s left over from the money the customer gives me is profit… ;-)

Bob Stelmack

[Regis]

Really good list Bob. But, some items are directly related to item and some need grouped as overhead to be divided and added into all work (like a charge added to hourly labor).

I do not agree with the car repair analogy (except saddles for working horses). Cars are primary transportation and have a huge replacement vs repair cost. Person can typically wait a couple weeks for bag or jacket repair. Just try that in auto repair. Leather items being repaired are more for comfort or personal preference items.

Using Bob's list would likely allow for regional or local differences plus an allowance for skill level.

Good topic.

regis

[mrdabeetle]

...

20. Cost of paper for keeping track of costs.

Don't forget the pencils!