Okay, so I'm a huge number cruncher and try various pricing methods all the time (probably like most newbies.) I've taken accounting and business classes but I can rarely apply the traditional formulas in a manner I understand or feel I can use in my business. I've come up with something that at least makes sense to me....now I need the rest of you to let me know if I'm crazy or actually on to something. :)
This module is supposed to help tell you what you need to charge depending on what you want to pay yourself (and an optional employee) based on how many *billable* hours/days you want to work. The end hourly rate should cover your salary, an employee's wage and your somewhat "fixed" monthly expenses. This DOES NOT take material costs into consideration, so that would be added on separately (i.e., if you charge 3x your cost or whatever.)
I know we typically have an hourly rate for the laser, another for setup/labor, etc., and I do, but this gives me an idea of the minimum amount I need to take into consideration during production hours based on how much I want to work and how much I want to make - it's a dreamer's tool! (Hey Chuck - this way you can take into account all your pool parties!) :)
Obviously, I need as much pricing advice as the next person so please give it a try and let me know if I'm at least on the right track. (You can enter your desired salary on the left and all your expenses on the right. There's room to add other expenses if they're not listed. Input data in green shaded cells, everthing else figures itself.)
Thanks!
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