The True Cost of Business
THE FB POST THAT START'S THE CONVERSATION WEDNESDAY NOV/25/2020 with Trevor Michael of Digerati Productions come join us and learn how to Freelance yourself on a business level and price yourself accordingly for your market and your knowledge.
A customer asked me how much it cost to make a table....
I answered him: $ 1500
He said: So expensive for this job?
I asked: How much do you think it would cost you?
He answers me: $ 800 maximum...
That's a pretty simple job right? !"
For $ 800 I invite you to do it yourself.
But.... I don't know how to.
For $800 I'll teach you how to.
So besides saving you $700, you'll get the knowledge for the next time you want It seemed right to him and he agreed.
But to get started: you need tools: A table saw, a planer, a top, dormants, etc...
But I don't have all these equipment and I can't buy all of these for one job.
Well then for another $250 more I'll rent my stuff to you so you can do it.
Okay, he says.
Okay! Tuesday I'm waiting for you to start doing this work
But I can't on Tuesday I only have time today.
I'm sorry, but I'm only available Tuesday to teach you and lend you my stuff. Other days are busy with other customers.
Okay! That means I'm going to have to sacrifice my Tuesday, give up my tasks.
I forgot. To do your job yourself, you also have to pay for the nonproductive factors.
That is? What is this?"
Bureaucratic, tax, vat, security, insurance, fuel etc.
Oh no!... But to accomplish these tasks, I'm going to spend more money and waste a lot of time!
Do you have them? You can do it to me before?"
Okay!
I'll make you all the material you need. Truck loading is done Monday evening or Tuesday morning you'll have to come by 6 loading the truck. Don't forget to be on time to avoid traffic jams
At 6??? Nope! Too early for me! I used to getting up later.
...
When you pay for a job, especially handcrafted, you pay not only for the material used, but also:
Knowledge
Experience
Study
Tools
Services
Time to go
punctuality
Accountability
Professionalism
Accuracy
Guaranteed
Patents
Sacrifices
Safety and security
Payment of tax obligations
No one can denigrate other people's work by judging prices.
Only by knowing all the elements necessary for the production of a certain work can you estimate the actual cost. I did not write this dialogue, but am sharing it to support craftsmen and entrepreneurs.
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