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Re: Costs of the restoration hobby

From: Mike B
Email: saukriversetters@isomedia.com
Remote Name: 66.114.157.145
Date: November 19, 2003

Comments

Bill, I wish you all the luck in the world, but you have apparently never been in business. You don't control the pricing; in fact just about everyone else BUT you control the pricing. If you pay a wage to an employee, in my state of Washington, you can just about figure to pay as much to the state as you do to the employee. By the time you figure in your taxes, unemployment, L&I, it is almost as much as you pay the employee. If you don't mark up your parts, how are you going to afford to pay for rent, and insurance (you don't want to have to pay out of pocket for a customer's car that burned up when you had a welding fire do you). And your income taxes alone will be something to deal with. From what you say, you are only going to profit from your labor, and I will tell you right now, you will not survive on labor alone. You can't pay your payroll taxes at $25.00 /hour. If you are serious, you need to really look at this through the experiences of other folks who have been in successful at or have been run out of business. There are many more expenses that a working joe has no clue about, and it will stomp you and ruin you if you go into it unprepared. Even at only $ 25.00 per hour, it will still cost you $25.00 to even find a part you say you want to charge at cost. Cost better include your search time, and that is going to be a hard charge to justify to a questioning customer. Been in business over 16 years and had my eyes open wide but still was surprised. And kiis your free time (which you used to spend on your own rig) goodbye! Don't take this the wrong way, Bill, I really do hope you are a success, but please do your homework before you hang your shingle. Mike.

 

Last changed: May 04, 2010