Re: Dinner set pricing

In article <[EMAIL PROTECTED]>, scrappy
<[EMAIL PROTECTED]> writes
>Can someone please indicate what  a dinner -set of 8 pieces for 12 people
>plus casseroles, soupturins, serving bowls and platters etc  ( about 135
>pieces) could cost?  Approximately. Pleas mention, if you reply, if it's US
>or Canadian $, it does make a difference!

The following is a costing example I sent to a correspondent in June
2002. It may be a bit detailed, but you won't do yourself any favours by
underpricing!

As the calculations in this are in Pounds Sterling the bracketed figures
are US dollars as of June 23rd 2002. 1 USD = 0.669 GBP

O.K here goes. 

The example below works as follows:
For the purpose of this exercise I have valued my time at 15 Pounds
Sterling (GBP) ($22.40) per hour.
My clay at 18 ($27) per 55lbs (25kgs).
The cost of my bisc fire at 25 ($37.35).
My Glaze fire at 35 ($52.28)

Half pint mug                           
Item....Detail...Time.....Cost GBP.................$
Clay....3/4lb........................0.25.........0.37
Throwing........45secs...............0.19.........0.28
Turn.....no                     
Handle...3oz....60secs...............0.25.........0.37
A.O.B................................0.50.........0.75
Bisque firing........................0.06.........0.09
Glaze 10% of Sub Total @ this point: 0.13.........0.186
Pack..Approximate time..26secs.......0.07.........0.10
Glost Firing.........................0.09.........0.13
Fixed overheads Plus 16 percent......0.25.........0.37
Cost price...........................1.35.........2.02
Wholesale= Plus 100 percent..........2.70.........4.04
Retail: Plus 40 percent..............3.78.........5.56

A.O.B (any other business) is an an arbitrary figure to cover answering
the phone, making tea, having a pee etc. etc.
Bisque and Glaze firings are calculated on the theoretical number of
that type of pot it would take to fill the kiln, in this case 400
Glaze cost is almost impossible to calculate so I used the figure of 10
percent of the sub total of the preceding  calculations to cover it.
Fixed overheads are such things as Rent, Rates (in the UK these are the
charges levied by the City to cover the costs of maintaining the area
and providing public services like rubbish collection, sewerage, etc.),
Electricity, Bank charges, vehicle costs etc. 16 percent is our current
calculation.  
The Cost Price is just that with no profit involved, and as you can see
the Wholesale is cost doubled. Retail is wholesale plus 40 percent this
is a low mark-up I know, as most shops that bought from me used to put
on at least 100 percent. But as I had already had my major slice with
the wholesale I used a low retail to encourage customers to buy direct. 
The only variation from the above is the rule relating to "one offs"
(individual piece special orders): because these inevitably incur extra
effort and time I apply the Bough Formula (Geoff Bough was my Tutor in
this) which is the addition of an extra 25 percent over and above the
final costing. Believe me you will have earned it!
I hope this makes some sense.

Steve
-- 
Steve Mills
Bath
UK