[TheForge] The Business of Bl;acksmithing, how to charge?

Wed Mar 5 22:32:00 2003

I assume that your shop is currently
"rent free" as many hobby shops are.
Once it is a business it is proper to
figure in a price for that space.
Insurance? That piece of metal in the
eye or arm is going to cost something.
How many hours are you going to work at
that rate? In the cheapest of operating
conditions I have a hard time imagining
you keeping more than 10 out of every 40
dollars if you are really thinking about
all of the costs involved.

My hobby smithy is heated to about forty
and is in a building that I own and keep
heated for other reasons related to the
day job. My private health insurance
from the day job pretty much covers me.
If I were trying to make a go of it
smithing I'd have to replace more than
$10 an hour and I do not think the other
thirty would cover what are now
"invisible costs".

Mike Graf

[email protected] wrote:
> 
> I have been a hobby/part time smith for more than 10 years and while I have never tried very hard to make a living I have managed to make enough to continualy improve my shop.  When I retire from my current job I hope to be able to suplement my retirement with forge work.
> 
> I know that most full time smiths do not spend all their time in the shop and that a great deal of time is spent behind the scenes.  My question (about time :) is how does one charge to ensure that they are compensated for the time spent on the business end of the opperation?  Also what percentage of gross income goes toward shop expences and what percentage is actually profit?  Finally, how much does one charge for materials and labor?
> 
> Currently I charge my cost plus 50% for material costs and $40.00 per hour.  It seems like this should cover non productive time as well as operating cost while still putting food on the table.  Any idea, thoughts, or suggestions would be greatly appreciated.
> 
> Thanks
> 
> John Switzer
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