[TheForge] Prices

[Andrew Vida]

Yeah, they are called "overhead" and there are several ways of 
accounting for it.  I really think that it would be a good idea for 
anyone going into business to at least read a book on managerial 
accounting, which covers this among many operations issues.  It is 
actually a very fascinating science.

Stephen Snow wrote:
> It's not about under-pricing; it is about doing small things that lead to bigger things. I think people in pricing often under-price partly because they fail to include the incremental (indirect) costs of doing business -- lights, heat, wear on equipment, health insurance, etc. All of these things are a part of the cost of doing business and need to be factored in some way.
> 
> But little jobs can generate bigger jobs and one shouldn't shy away from something just because it is small or onorus.
> 
> steve snow
> 
> -----Original Message-----
>> From: dan tull <dantull at numail.org>
>> Sent: Mar 28, 2008 11:11 AM
>> To: Stephen Snow <shsnow at mindspring.com>, Sponsored by ABANA <theforge at mailman.qth.net>
>> Subject: Re: [TheForge] Prices
>>
>> You should never price a job contingent on future work that may never 
>> materialize.
>>
>>
>> ----- Original Message ----- 
>> From: "Stephen Snow" <shsnow at mindspring.com>
>> To: <GHS at execpc.com>; "Sponsored by ABANA" <theforge at mailman.qth.net>; 
>> "Sponsored by ABANA" <theforge at mailman.qth.net>
>> Sent: Friday, March 28, 2008 11:07 AM
>> Subject: Re: [TheForge] Prices
>>
>>
>>> Also, keep in mind that small jobs, although sometimes not worth the 
>>> trouble themselves, are advertising for bigger jobs, if not with that 
>>> particular customer, then with someone who sees that work somewhere. 
>>> Weighing these intangible factors also is important in how time is 
>>> allocated for different work...
>>>
>>> steve snow
>>> -----Original Message-----
>>>> From: GRAF <adveniam at att.net>
>>>> Sent: Mar 28, 2008 10:43 AM
>>>> To: Sponsored by ABANA <theforge at mailman.qth.net>
>>>> Subject: Re: [TheForge] Prices
>>>>
>>>>
>>>>
>>>> Andrew Vida wrote:
>>>>>     This is a really important point IMO.  One has to know when a job
>>>>> is simply not worth doing.
>>>> Andy, I have several thousands of dollars of income from GOOD jobs that
>>>> were generated by thankless, miserable little jobs.
>>>> The trick is not doing the miserable ones while leaving the good ones sit.
>>>> I just tell the pesky jobs owners that they can pay me $100 an hour if
>>>> they need it right now, or $50 an hour if I can do it as I see fit.
>>>> Either way I win.
>>>>> Design time should probably be a separate cost item.
>>>> If it is truly a one time project with no overlap I charge a separate
>>>> set up fee.If I need to build dies I either charge a lot and give them
>>>> the die, or if I think I might be able to use it again a little less.
>>>> The same goes for drawings.
>>>> It then works out often to, "The first one costs you $800, the second
>>>> $250 the third and more in batches of four or more $150 each.
>>>>> If you chalk it up to overhead and don't charge for it directly, you
>>>>> may be passing several times the purchase price of those $100 coat
>>>>> racks to another customer.
>>>> That depends for me whether or not it is a "tuition piece".
>>>> Spending two days learning to do something is little different than
>>>> going to a school and dropping $1500 with travel, meals, class charges,
>>>> other than  with the tuition piece I get to sleep with my wife at days 
>>>> end.
>>>>
>>>>
>>>> Mike Graf
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>>>>
>>>
>>> ========================================
>>> Stephen Snow, PhD, LPC
>>> shsnow at mindspring.com
>>> www.commcure.com
>>> 828-319-5066 (c)
>>> 828-689-3615 (h)
>>> 828-250-5254 (o)
>>> "A human person is infinitely precious and must be unconditionally 
>>> protected."
>>> - Hans Kung
>>>
>>> _______________________________________________
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>>>
> 
> 
> ========================================
> Stephen Snow, PhD, LPC
> shsnow at mindspring.com
> www.commcure.com
> 828-319-5066 (c)
> 828-689-3615 (h)
> 828-250-5254 (o)
> "A human person is infinitely precious and must be unconditionally protected."
> - Hans Kung
> 
> _______________________________________________
> Manage membership or unsubscribe at:
> http://mailman.qth.net/mailman/listinfo/theforge
> theforge mail list group photo site is
> http://www.photoaccess.com
> Login:  blacksmithblacksmith at hotmail.com
> password:  anvil
> ___________
> 
> 

-- 

	-Andy V.

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