How to calculate the cost of handmade. How to calculate the cost of handicrafts and master classes

Thinking about the construction, first of all, you think about the question: how to correctly determine the cost construction works? Therefore, we decided to tell our Customers and just readers, where it is preferable to start calculating the cost of construction work. Of course, in order to correctly determine the cost of construction work, it is necessary to know all types of construction and installation work that will be performed. After that, based on the design data, it will be possible to determine the real cost of construction, which includes all costs, including labor, material, taking into account the use in construction installation work necessary machinery and equipment. We have noticed that most of all Customers are concerned about the method of calculating the cost of the final construction product. We can say unequivocally: all work is calculated according to the standard rates approved by the state and local authorities self-government, using correction factors. Unfortunately, estimates often do not take into account progressive technologies in modern construction industry, therefore, in estimates, more civilized forms of calculation can be used to correctly determine the cost of construction work up to the ruble. In this case, it is appropriate to emphasize that with small volumes of construction, the final amount of costs can be determined by the labor-intensive method, based on an aggregate indicator of the cost of work. And if the Customer does not know how to correctly determine the cost of construction work, an unscrupulous Contractor may increase the total cost of construction work due to transportation costs, the cost of purchasing materials, etc. Therefore, the calculation of the cost of the project must be trusted to qualified specialists, experts regulatory framework commercial pricing. In our opinion, in order to correctly determine the cost of construction work, you must either invite an independent professional estimator, or use specialists-estimators from the staff of the Contractor, who will carry out construction and installation works. In the first case, you will find out the estimated cost investment project construction, as close as possible to the real price of construction and installation works. In this case, however, you will have to pay a certain amount for the preparation of estimates, which may even affect your budget. In any case, this value will be at least 5% of the cost of the entire project. In the second case, you use the services of the Contractor, who will most accurately be able to make all the calculations and correctly determine the cost of construction work, which he himself will carry out. At the same time, the cost of preparing an estimate is already included in the total estimated cost of the project and you do not have to spend additional cash which can effectively save you time and money.

There are two ways to correctly determine the cost of construction work:

  • Calculation on aggregated indicators. This method is practiced by Contractors who make up an estimate that lists the main stages or types of work without detailing. A list of materials, in quantitative and price terms, is attached to the estimate calculation according to aggregated indicators, so that the Customer can independently check the types of work, their quantity and cost, as well as correctly determine the cost of construction work by comparing prices from other Contractors. This option for determining the cost of construction and installation works is most often used by small construction companies or hired teams of workers. The accuracy of this estimate is about 70%.
  • Expanded estimate. Let's say right away that in order to correctly determine the cost of construction work, taking into account the use of new construction technologies, it is necessary to form estimated norms based on calculations and technological maps for individual building operations. The detailed estimate method assumes knowledge specifications project, as well as practical experience A contractor who is fluent in the construction business and knows all the necessary information about new materials and the quality of products on modern market. This method of drawing up a detailed estimate can only be afforded by serious construction companies that have qualified engineering and technical workers in their staff. In addition, in the detailed estimate, in addition to direct costs, all overhead costs, planned savings of the Contractor and other costs are separately allocated, the detailed descriptive part of which will be clear to any Customer. The accuracy of this estimate is 5%.

In order to avoid errors in calculations, the Customer, before the start of construction work, must decide on the right choice A contractor who knows how to correctly determine the cost of construction work and save on construction and installation work, in terms of money and time. Call us! We are ready to answer all your questions on the pricing of services in our company and accompany your project from drawing up design estimates to the appropriate execution of the necessary construction work, taking into account your wishes and requirements of technical regulations and other building regulations!

Each experienced craftsman confirms our belief: the ability to correctly build pricing own products- one of necessary conditions successful hand-made business. And everyone who is just starting their creative business path will confirm our other conviction: at first it is completely incomprehensible what price to set, how to argue it, and what guides competitors selling similar products with completely different price tags.

We will not let you face such difficulty and will immediately offer a justified pricing algorithm. Acting according to the formula below, the question is how to calculate the cost self made stop being painful and make room for really creative pursuits!

Step-by-step algorithm for calculating the price of a hand-made product

So, as the basis of our pricing, we take a formula applicable to any type of business, but adapted for craftsmen:

C=SM+Zp+A

C - the price of the finished product;

CM - the cost of materials (here we include all consumables);

Зп - labor costs (that is, your salary);

A - the cost of depreciation of "fixed assets", that is, a sewing machine, knitting needles, a potter's wheel, a figured hole punch, a model rug, an oven and other "machines" for masters of creative directions.

  • Cost of materials (CM)- it would seem that there is nothing to say about this point, but there are still nuances. Firstly, the master must accustom himself to take into account absolutely all the materials used to manufacture the product, and, secondly, he must scrupulously calculate all of them. Well, if everything is easily summed up and divided - 1 sheet of designer paper, ½ a dozen eggs, 2 skeins of yarn, etc. But very often literally 3-4 strokes of some color of paint, a drop of food coloring, “a little yarn” for a contrasting insert can be used in the work. If all this is put on the brakes, not taken into account and reset to zero, then the business will rapidly fly into the pipe. Yes, it is not easy to take into account ⅙ a jar of decoupage varnish or 0.5 ml of fragrance, but only this approach will allow you to see an objective picture of the cost of products. In addition, in the future, you can make your life easier by applying the same cost of materials for the same type of products.
  • Labor costs (Wc)- perhaps the most controversial component of the pricing formula. How to calculate the cost of a handmade product, taking into account the labor and time invested? The most common practice: masters do not bother, calculate the cost of materials and multiply by a certain coefficient - 50% -100%. In the vast majority of cases - exactly 100%, that is, they multiply the cost by two and announce the price of the finished product. But this method is not suitable for everyone and not always, so let's try to decide exactly on the payment for work. So, you need to decide on the amount that you want and / or consider reasonable and optimal as a monthly salary. We divide this amount by 22-24 working days per month (or maybe by another number - it all depends on how many working days you plan for yourself), and we divide the daily income by the number of working hours (everyone has different ways - from 4 to 10 and even 12 hours a day). Now, knowing how much an hour of your creative work and how much time you spent on this or that order, you can easily include your salary in the price of the final product.
  • The third and final component is depreciation, that is, the wear and tear of working tools and mechanisms. This is where you really have to work hard, carefully calculating the indicators. To explain with an example, you are a scrapbooker and your tools include a die cut and embossing machine that you use to make most of your pieces. First, you need to understand how much you use the tool on average per month/year/week. Secondly, you should read on the packaging or find on the manufacturer's website the service life that he indicates. So, the machine is 5 years old. This means that for 5 years you must include in each order using cutting and embossing such an amount that in 5 years you will be able to upgrade the machine. Of course, there are a lot of exceptions: tools without a service life (knitting needles, ruler), tools that fail prematurely or suddenly are prone to breakage (cooking equipment, cutters and cutting tools). But here it is important to understand the principle: you must include in the cost of your work the ability to update the "arsenal" in the future, or else quickly replace the necessary tool.

Calculation of the cost of work on the example of a postcard

Used materials:

  • cardboard base for a postcard - 30 rubles;
  • 1 sheet of A4 design cardboard - 25 rubles;
  • guipure cut - 0.25 cm x 65 rubles = 16.25 rubles;
  • satin ribbon - 0.4 m x 5 rubles = 2 rubles;
  • decorations "butterflies" - 0 rubles (a gift from a friend);
  • decoration "clothespin" 5 rubles;
  • finished element of decor (a bouquet of flowers) 23.75 rubles.

Total: 147 rubles.

  • Depreciation:
    reciprocating paper cutter (cutting designer cardboard on both sides) 2x2.5 = 5 rubles;
  • scissors with a curly edge (cutting the element from 4 sides) 4x0.75 rubles = 3 rubles.

Total: 8 rubles.

The final calculation, taking into account remuneration for work:

Method 1 The appreciation factor is taken as 2 (that is, 100% of the cost of materials and depreciation). In this case:

(147 + 8) x 2 = 310 rubles.

Method 2 You plan to earn 20,000 rubles. per month, devoting 24 days to work, working 6-8 hours. With such data, on average, you estimate an hour of your work at 100 rubles. In this case, the calculation of the cost of the postcard is as follows:

147 + 8 + 150 (one and a half hours of work) = 305 rubles.

What's next?

A rigorous calculation of the price of a product is no guarantee that potential buyers will appreciate its fairness and reasonableness. Believe me, many masters sell their work at really high prices. They include in pricing calculations… name! That is, over time, when the quality of your work is appreciated by a large circle of people, the level of service (accepting an order, responding to letters and calls, delivery and packaging) will be polished to perfection, and the creative side of the process will develop into a new, higher level, your name will become brand! And the brand, as you know from the example of giants, is worth a lot!

At the same time, it makes no sense to significantly underestimate the price if you plan to make money on hand-made permanent basis. Yes, dumping competitors will help you attract a couple of customers. But "taking the price" all the time is unreasonable, and this is not required at all for a truly high-quality product. Remember that people, for the most part, buy with their hearts and impulses - this also applies to small decor for 100 rubles. a piece, and $500 flower vases, and $2,000 dresses, and shoes the price of a Boeing wing.

Your talent, work and burning heart will certainly be appreciated, but for this you yourself must appreciate your work. What we sincerely and wholeheartedly wish you!

Costing is understood as the process of calculating the cost of a service (or product) based on an approved methodology, as well as the document itself, which contains data on costs. The calculation is made in order to relatively accurately determine the cost of a particular service. A sample calculation and the rules for compiling this document are described in detail in the article.

You can download a sample calculation of the cost of services at the end of the article.

The cost of the service is determined using several approaches at once: the company cannot sell it cheaper than the cost and margin, but besides, you have to focus on pricing policy competitors and the effective demand of buyers.

At the same time, unlike the price per unit of production (material goods), it is more difficult to determine the exact cost of the service provided, since in the case of a service it is possible to determine only an estimate of projected costs, which may vary depending on the market situation. In addition, the concept of “typical, homogeneous service” does not exist as such. Any service can include a combination of different elements, so both the cost and the consumer price can vary significantly depending on the situation.

However, in any case, the types of costs will be constant - these are:

  • spending on materials and other material costs;
  • depreciation;
  • salary;
  • social contributions, taxes;
  • loan servicing;
  • rent payments, etc.

AT finished document according to the calculation, all these costs can be grouped both by articles and by types of costs.

Cost Calculation: Sample

The document itself is usually compiled in the form of a table that reflects direct costs (salary, taxes, social contributions) and indirect (everything else).

Costing articles can be specified in any wording - here is an example of calculating the cost of performing work on creating a regular manicure.

Also, calculations can be made in dynamics, analyzing the same indicators for different periods.

Instructions for compiling and video

Calculations are carried out in accordance with a previously developed methodology or instruction, which describes the calculation algorithm. For example, payment educational services depends on the number of hours, as well as the degree of qualification of the teacher, which is necessarily prescribed in the relevant methodological recommendations.

Essentially, calculation is detailed description costs associated with the provision of a “unit” of service, which can be measured in various ways:

  1. Hourly rate - this is how educational services are measured.
  2. By describing the result - for example, cosmetic repairs indicating the area of ​​\u200b\u200bthe room.
  3. With the help of other indicators - transportation of goods over a distance of 45 km.

The cost structure will directly depend on the type of work performed. Therefore, the calculation algorithm will have its own differences. On the example of calculations related to transport services, the instruction will look like this.

First, the cost of the service is estimated based on the cost of wages:

  • drivers;
  • auxiliary workers serving transport;
  • managers, employees and other professionals working in the enterprise.
  • repair current, capital;
  • fuels and lubricants;
  • depreciation of fixed assets;
  • seasonal expenses (oil, tires, etc.).

Then take into account tax payments and define other indicators:

  1. Profit according to plan.
  2. Tariff with and without VAT.

Usually written with a description specific service: for example, transporting bricks can be more expensive than transporting lighter items (hay, pillows, etc.).

The simpler the service looks in terms of its implementation, the simpler the cost estimate itself will be. For example, if we are talking about the performance of artists, dance or singing groups, expenses are associated with the payment of salaries, social contributions, as well as the provision of rent of the appropriate premises.

In the production of goods, it is almost always necessary to take into account not only the cost of manufacturing a unit of output, but also possible losses at different stages of the cycle.

The calculation is made for repair work. Typically, the volume of such services is measured by the area of ​​​​the room and other indicators (for example, slope length, ceiling area). The estimate includes costs per unit of work, indicates a specific type of activity (for example, leveling walls, painting, installing a stretch ceiling, and much more), and then gives the cost for each work and the final value.

Thus, the calculation algorithm looks like this:

  1. The service unit is determined - what kind of work is supposed to be implemented in this case (repair of 1 apartment, transportation of 5 tons of cargo over a distance of 100 km, provision of a tutor service for 10 teaching hours, etc.).
  2. Clarify a detailed list of all expenses at their cost.
  3. Determine the tariff with and without VAT.
  4. Specify the planned profit.

Video instruction for compilation

The document is usually signed Chief Accountant, the company seal is put on it. Management is under no obligation to disclose such information to its clients. There is also no indication in the legislation as to whether costing should be applied to contracts with counterparties, so the decision can be made at your own discretion.

For many needlewomen there is a problem - how to calculate the cost of a handmade product. That is the price for which you can and should sell. In my video, I will show a plate for calculating not only products, but also trainings or courses, master classes.

Even if you have never worked in this program, you can easily calculate both the cost and the final price of your product.

This article is a transcript of a video about the calculator.

Before you is a tablet, on two pages. The first page is a calculator for calculating the cost of the finished product.

How to work with the calculator

Let's go through the columns.

  • The first column is the name of consumables. Here you will need to bring all the consumables. For example, fabric, buttons, thread, etc.
    The bottom line of the column is YOUR labor.
  • Column two - Purchase price of materials. That is, how much you spent on the product in terms of money.
  • The third column is the QUANTITY of materials spent. Meters, pieces, kg, your working hours, etc.

Nothing complicated.

Difficulties may arise with the calculation of the cost of your working hour. To determine it, I recommend referring to the minimum wage for your area or city and recalculating the cost of one hour. In our region, the minimum wage is not high, about 70-75 rubles an hour.

An example of calculating the cost of a handmade product

For example, for knitting a sweater, you used 3 skeins of yarn for 180 rubles. And also a button 5 pieces for 10 rubles. Write it all down on the board.

Total net time for knitting spent 8 hours. Basically one business day. As I already wrote, the minimum hourly wage is 75 rubles.

Enter this data in the plate and in the third column you will get the final figure for the cost of the product. Selling below this figure does not make sense - at a loss. In total, my salary for knitting this blouse will be 600 rubles.
Let me remind you once again that the cost price must include your wages.

In my case, it turns out 1190 rubles.

Next, determine how much profit you want to receive from the sale of the product. Enter in the appropriate box and get the same price for which you can sell. And you have a range of prices - from the cost to the price with your net profit.

For example, I want a profit of 300 rubles. Then the final price of my product is 1490 rubles, almost one and a half thousand.

If the profit is 500 rubles, then the price will rise and become 1690 rubles.
So you can play with a profit, knowing for sure that you will not offend yourself, because the minimum wage is already in the cost price.

How to calculate the cost of a training or master class

Let's move on to the table for determining the price of a digital product.

The table is compiled by analogy with the above.

I have already filled it out approximately, including the costs of telephone, Internet, electricity, etc.

There are additions to this table, taking into account the fact that DIGITAL goods can be sold many times WITHOUT making additional investments.

IN THE SECOND PART of the table in the sales section, you add the number of versions sold and the price, which can be SIGNIFICANTLY below cost. You see that with a SMALL number of sales, you can go into the red.

HOWEVER, it is thanks to MULTIPLE sales that you will not only cover your expenses, but also be able to make a profit again, again and again.
Please pay attention to this fact and TRY yourself as the leading master classes, trainings. In general, create YOUR OWN SCHOOL ONLINE.

Let me remind you that we are talking about the minimum cost of products. You can always quote a higher price. For the quality, speed of work, its promoted brand.

Mythbusting

First, I would like to touch on the myth that low prices make the product faster to sell. This is not always the case, especially when it comes to handmade items. As a result, many craftsmen deceive themselves into making reasonable profits. This is easy to do because you want the money to start rolling in as quickly as possible. It is tempting to believe that the lower the price, the faster the jewelry will sell. However, sometimes ultra-low prices can make customers suspicious. Why so cheap? Is there something wrong with this? But if someone really wants to get a handmade product (if the price is not super high), they will pay what you ask.

Accounting for overheads


When pricing, consider your overheads. This is any value that is not directly related to your product. For example, when making jewelry, beads are not an overhead because they are part of the item you are selling.

Here are some examples of overheads:

Travel (for example, visiting a store to buy supplies)
- Your stationery (business cards, paper, pens, etc.)
- Your tools (pliers, wire cutters, etc.)

Of course, if you think about everything aside from the supplies you need for your jewelry making business, you end up with a long list of overheads.

They are also critical to pricing because they cost you money and if you don't include them in your jewelry price then you are wasting money. Calculate your approximate overhead costs that you can apply to each item you sell.

Labor costs


How much do you make per hour at your current job? How much money do you need to make per hour to live the lifestyle you currently live? It's really important questions. Too many jewelry manufacturers make the mistake of working for free or below the minimum wage. But how justified is this if you really want to make jewelry making your full-time or part-time business?

Even if this activity is what you love to do and brings you pleasure, you also need to eat. So be realistic about how much you want to earn per hour of work. Once you get your hourly rate, the next step is to figure out how long it takes you to make your costume jewelry. You don't need to accurately time how much you make each individual piece, but you do need to have an idea of ​​how long it takes to make the jewelry. This will help you later when you are trying to determine the final price of your items.

Wholesale and retail trade


Now we need to decide how to sell - wholesale or retail. If you want to have sales, then you need to think about it. Many craftsmen believe that they are used by wholesalers, but the rules for wholesale trade already installed. So, you must play by these rules. Of course, you can make twice as many sales with your retail, but how much effort do you need for this? You can sell your jewelry at the exhibition, but you will have to spend 1 to 2 days for the show, and also spend money on food, drinks, etc. Whereas a store can sell your products for just a few hours spent selling.

Handmade Jewelry Pricing Formulas


There are several different formulas you can use when evaluating your jewelry. One piece of advice is to think about how to calculate the wholesale and retail price early in your business development, because it can be too difficult to do it later.

You need wholesale prices in case you decide to sell to a store one day, and you need retail prices if you decide to sell at trade shows yourself. Obviously, your retail price must match the retail price of the stores you sell to.


The rationale for pricing for wholesale is to add up your costs (including labor, overhead, and consumables) and multiply by 2.

It turns out the formula: 2x(expense + labor + overhead) = your total cost.

For retail, do the same but multiply by 2.5-3 (often referred to as a factor).

Below is an example of how this formula works and of course it may vary depending on the cost of supplies, your hourly pay and your overhead, but will give you an idea of ​​how to apply the formula:

You make a pair of earrings, the cost of materials is 200 rubles; it took you 10 minutes. You want to determine your salary in the amount of 600 rubles / hour. That is, in 10 minutes the cost of your labor will be 100 rubles. and overhead costs that you estimate, for example, at 100 rubles. That is, it turns out:

Wholesale price for earrings: 2 x (200+100+100) = 800 rubles.

Retail price for earrings: 2.5 x 400 = 1000 rubles.

Variable prices


Variable prices may vary depending on where you live, for example, and they may also affect the overall cost of your jewelry. This falls under "how much can I realistically get for my jewelry?". Factors such as where you sell your items can affect the price you should receive. You need to know your audience. Selling your jewelry in a small town market will not be the same as selling it in a high end gallery. You should think about this before calculating your final prices.

Final prices


In general, most costume jewelery manufacturers and craftsmen do not ask enough for their pieces, perhaps one of the reasons for this has to do with self-esteem. Many feel intimidated large stores who import ready-made jewelry, but if you stop and think about it, nine times out of ten, your work will be much better in quality.

Also, if you want to make your business a serious, viable pursuit and not just a hobby, you need to be a serious business person, and that means you value your products seriously, paying yourself a reasonable salary covering all your expenses, and, in ultimately make a profit.