Author: Craig Matovich
Date: 2007-04-14 17:42
Thanks, that is interesting.
Do you know how he manages the subscription?
What if someone just wants to try a couple of his reeds now and then?
Let me assume a few things about the operation and the business looks like this to me:
300 per month * $30 * 12 = $108,000 per year... ($9,000 per month)
300 * 10 min = 3000/60 = 50 hours month...
Then minus $3 per reed materials * 300 = $900 per month
Assume gouge, shape and tie 15 per hour @ $7 per hour labor...
So, 300/15 = 20 hours labor = $140 per month, or say he pays $1 a reed for prep, and %33 wasted blanks so $400 per month
Gross of $9,000 - $900 materials- $400 labor = 7700 / 50 yields $154 per hour to Weber for his 50 hours. Wow!
(shipping and handling cover office expense to ship)
Assume another 10 hour oversight, etc and 7700 / 60 = $128 per hour
Hmm... now that is competitive with IT contracting work on a 1099 basis.
Further assume its 10 months instead of 12 (vacations, concerts, seminars, etc.)
10/12 * 128 is sill $106 per hour.
50 * 10 * 106 = $53,000 net for a part-time job and leaving plenty of time for music, exercise, etc.
Assume 3,000 per year in gougers, shapers, incidentals and it still leave $50k.
Anybody want to check my math?
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