I read an article the other day ...
"Figuring your hourly rate" ... was the premise of the article.
Let's say I want to make $10,000 per year profit.
The questions I need to answer:
How many weeks am I going to work, per year?
How many days am I going to work per week?
How many hours am I going to work per day?
(Above is to calculate the 'creative/making hours'...not the administrative / marketing hours).
Goal: 45 weeks per year.
Goal: 4 days per week.
Goal: 6 hours per day.
$10,000 divided by 45(wks)= $223.oo per week.
$223 divided by 4 (days)= $56.00 per day
$56 divided by 6(hours)= $9.34 per hour.
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To calculate the price of an item:
How many items can I make per hour?
How much $ for materials for the item?
How much is the overhead? (usually add 15% of the above calculations)
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Let's say I can make 3 items per hour.
Let's also say the materials for each item cost me: $2.00
I would need to charge $9.34 divided by 3= $3.12 +$2=$5.12 +.75= $5.87 per item.
($6.00 per item for every 20 minutes of work!)
That would be REAL Time/ Work! of course! No breaks, etc... so if I picked up the phone, or answered the door, or took a nap, or walk... I would not count the time! LOL!
Off to work I go!
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