Showing posts with label Costing. Show all posts
Showing posts with label Costing. Show all posts

Tuesday, 24 May 2022

Stained Glass Project Sheet

Why is a project record sheet useful?

 

A record of a project helps to set down the client and maker agreements, estimate quantities, determine prices, review past practices for successes and record possible changes for the future.  Even if you do not have clients, comparing the record sheets over a period can give you information on how quickly you work, the amount of glass you use in relation to size and complexity, information for costing, etc. It can give you confidence in stating - and sticking to - your prices.

 

What should be included? 

Desirable elements include the following.  You may have others to add according to your individual practices.   

Initial project information

  • ·        Project description - including dated sketch or photo or reference to cartoon
  • ·        Intended location – autonomous, primary glazing, encapsulated, attached, etc.
  • ·        Dimensions for both two- and three-dimensional projects.
  • ·        Delivery date. This may be an estimated or firm date.
  • ·        Price or estimate – indicate which. 

Materials

·        Number of pieces. Approximate the number, if a numbered cartoon is not available. You can add the actual number later.

·        Glass type and codes that you will (or have) used, in case additional glass is required.

·        Amount and cost of glass used during completion. This is not simply the amount used, but also the amount you would require to replace the glass stock.   

·        Joining materials: came, copper foil, lead light cement, patina, adhesives, wire, mountings, etc.  These should once again include what needs to be purchased with their costs, rather than just the amount used. The whole roll of copper foil, the whole tub of lead light cement, etc., need to be accounted for on the form to give an accurate idea of costs.

·        Solder manufacturer, type, composition, and quantity purchased, and costs, rather than what is used. 

Process methods

Cleaning, Polishing, etc. descriptions. 

Time

The time used to complete the project should be noted as you go along.  It can be divided into various process – such as cutting, fitting, foiling, soldering, cleaning – or as a simple cumulative amount of time on the whole project.

Description of project results

A critique of the project including what might be done differently, the successes, the discoveries, should be written up at the end of the project. 

 

What does all this record keeping provide me?

Recording this kind of information provides a record of how various projects went, how you met any difficulties, what the successes were.  This is useful to look back on when similar projects arise. 

This information is invaluable in assessing materials costs, and time required for various styles and complexity of projects are requested.  It enables a quick and assured way of estimating the costs of a project when a commission is requested.  It gives you assurance about your pricing and valuation of projects you have completed for craft fairs or friends. You don’t have to be apologetic about the price of items, because you know the costs. 

A possible form might look like this:

 

 

Project information 

Name of project:

Date:                           Clients:  

                           Contact details:

 

Due date:

Project title and description (photo?)

 

 

 

 

Dimensions  2D                                        3D

       Opening:                                   height:

       Glazing:                                     width:

       Sight:                                        depth:

 

Number of pieces:

 

Materials required

Glass descriptions,         codes              quantities       costs

 

 

 

 

 

 

Copper foil - maker:       size               rolls               costs

 

 

Came – maker        dimensions     lengths                  costs

 

 

Lead light cement – type, recipe, amount,                   costs

 

Solder – Maker        composition           length/rolls     costs

 

Adhesives – maker     amount                                  costs

 

Miscellaneous materials – description     quantity         costs 

 

 

Summary of Costs of Materials                      _______

Processes

The starting and finishing time, including any attention to equipment should be recorded for each working session.  The actual hours and minutes can be added up later.  You can simply record the times for each project regardless of process, e.g.:

__:__  to __:__;  __:__  to __:__;  __:__  to __:__;

__:__  to __:__;  __:__  to __:__;  __:__  to __:__;

__:__  to __:__;  __:__  to __:__;  __:__  to __:__;

 

Or you can record by process, e.g.

Cutting and fitting glass:   times , e.g.

__:__  to __:__;  __:__  to __:__;  __:__  to __:__; etc. 

 

Leading - times

__:__  to __:__;  __:__  to __:__;  __:__  to __:__; etc. 

 

Foiling -times

__:__  to __:__;  __:__  to __:__;  __:__  to __:__; etc. 

 

Finishing – times

__:__  to __:__;  __:__  to __:__;  __:__  to __:__; etc.  

 

Summary of time:                                   ___:__ 

 

You will, of course, develop your own form of recording your project materials, costs and time used for the project.  But it is important to keep some record of what amount of effort and cost has gone into each project.  Over time, things seem easier and less costly than they actually did.  A record of the project reminds you of the actual matters.

Wednesday, 8 December 2021

Quoting for Fused Glass Commissions


When quoting on a fused glass commission, what are all the factors to consider?

Commission for Glasgow University

Quote the same way as for leaded or copper foil.  But if you don’t work in those forms, that statement will not be much help.

The elements to consider are:
·        Design time and value (making sure you retain the copyright of the design).
·        Amount of time to assemble. You need to think clearly about how long it really takes.  You need to be charging a reasonable amount for your time. Think about skilled trades people’s charges and that you have additional artistic skills.
·        Amount of glass to be purchased (rather than used) to make the piece, even if much is from stock – you must replace it after all.
·        Number and cost of kiln firings.  Be clear about how many firings might be required, if something does not work out first time.  Be clear about how much each firing costs including depreciation on the kiln.
·        Incidental supplies.  All the little things that are necessary to supply your practice, such as art materials, kiln supplies, etc.
·        Overheads. This is the cost to run your practice.  If the studio is part of the home premises, add a proportion of the running expenses of the house to the cost.  The cost of business - advertising, promotion, printing, etc., all need to be included.
·        Profit. You do need to make a profit to stay in business. Decide what that is and add that percentage to the cost.
·        Allowance for contingencies (20% of the price already determined is usual).
·        Delivery/installation costs (normally in addition to the cost of design and making).

It is advisable to find out what the client’s budget for the commission is before starting any designing.  If it is too small for their specification, decline the commission.  Otherwise, you can design to the budget.  A large budget allows expansive or highly detailed works.  A small budget restricts the size or detail possible.

Some people charge more for a commission. Some, like me charge less, as I am getting most of the money up front, rather than maybe sometime in the future.  Cash is important.

Some artists take 1/3 to make the design, 1/3 on approval of design, and final 1/3 on completion. This is widely used in the interior design field. You may want to consider requiring a non-refundable deposit of one third to make a start and the remaining two thirds on completion as an alternative. 

A contract of some sort is essential.  It needs to cover the expectations of both parties.  Cost, of course.  When is it to be completed? Requests for colours, shapes, location, style, etc.  If the client wants approval at various stages, you need to either state what these stages are, or more sensibly, decline the commission. 

The contract does not have to be legalistic.  It can be a letter stating the terms of the commission that is sent by you to the client and acknowledged by them.


Determining the price for a commission requires consideration of the costs of time and materials, and the values of what you do.  A contract of some sort is required. It can be a simple letter with a statement of the agreed conditions.





Wednesday, 2 December 2020

Consignment Rates


The most common comments about the rates for consignment of pieces to a gallery or gift shop are that they are not fair. They are too high. The gallery is greedy. And so on. How do you judge whether the commission rates are fair?  What are the factors that should be considered?




Time
How much is your time worth?  

Think about the amount of time used to prepare, promote and attend craft fairs, pop up shops, or prepare for and administer online selling. Could you be using that time to make more things, or be with your family?  How much would it improve your quality of life to have to do less selling?



Costs

What are the costs of attending craft fairs?  

    You have to acquire display materials, whether you make or buy them.  You must travel to the event.  You have to be prepared to accept breakage risks from repeated movement of the pieces.  You must pay for the space at the craft fair.



Customer base
Is the shop’s market different than yours at craft fairs or online marketplaces?  
    Shops have a different clientele than craft fairs or online shops.  They spend effort in attracting customers.  They know their clientele and what kind of things will sell to them.  They are aware of the pricing levels needed for their visitors.

Decision
Answering these questions about time, costs and customer base will give you an assessment of whether consignment commission rates being offered are fair. 

Sunday, 9 February 2020

Pricing, 1 - Establishing the Cost

Pricing your work is necessary to get a fair return for your effort and to make an income.

Establishing the Cost


The first step is to calculate the amount it costs to run your business. Prepare a summary of annual outgoings including:

  • Studio/workspace (or as a proportion of the house that you use for a home studio)
  • Administration costs
  • Equipment & loans
  • Packaging
  • Marketing materials
  • Advertising
  • Incidental expenses
  • Income tax & social security payments
  • Insurance for public liability, materials, equipment, and employment
  • Depreciation (cost to replace things you are reliant on). The amount or proportion varies according to jurisdiction.
You will need to make some guesses about the amounts and that is OK. The value you put on some of the things above may be “zero”, but still need to be considered. All these are considered to be the overheads of your activity.


2. Step two is to calculate the time available to make your work over a year. If you are full time, start with 365 days and then subtract the weekends (104), holidays (say 10), administration time, and allow a contingency for sickness, etc.(say 10). That leaves you 241 days, less the administration time.  When you first start in business you are likely to spend 40% of your time on administration, but you should get more efficient and this time will reduce to around 30%.  So, even when fully up and running you will have about 169 days out of the 365 to spend on producing work - at best.  This means that you will have about 46% of the available time spent on production.


If you are working part time you need to do the calculations on the basis of the number of days you have available and do the subtractions and calculations as for a full time basis.  You may find your overheads are proportionally higher than fulll time, as these costs continue accrue whether you are in the studio or not.

Then do the calculation:


Overheads & personal salary (you do want to pay yourself - I insist!) divided by days available to work.


This enables you to fix a price for your time and gives you a daily rate from which you can calculate an hourly rate.



3. Step three is to estimate how long it takes you to do anything - preparation time, research, selling, marketing, packaging etc.


Add together the cost of materials and charge for the time it takes to make the item at the hourly rate you have calculated. This enables you to calculate a price for the item. Then look at how much the market will pay for your type of work.


Even if you know the market will not stand the full price, you should still do the calculations to find out the price that you should be trying to achieve.  If the price is unrealistic, you need to look at simplifying the item, or to consider different items.


All these calculations need regular reviewing.



More information is available 
Establishing the costs
Creating a pricing structure
Terms and conditions of sales
Customer relations


Payment

Wednesday, 10 July 2019

Stand Alone Online E-Stores


Perhaps none of the existing online marketplaces fit enough of you needs to join them.  You can set up your own and make it your only online store, or you can do it in addition to other ecommerce sites that have some of the features you want.


Advantages

The advantages of your own online store relate to control and adaptability to your design needs.

You retain control of the design, layout, branding, etc., of your site.  This helps maintain your identity or brand and aligns it with your product range.

You have control of when the store is live and when it is updated. You, of course make the rules for what can be listed and how it is displayed.

You don’t have to acquire a lot of knowledge about setting up websites and online stores. Website builders offer templates and store services. You can also use professional website builders to get complete control.

You can link to Etsy or other market places from your own store.  You can funnel the traffic from these sites to own site.

Your own site will enable you to build closer relationships with your buyers. You can communicate directly rather than through intermediaries.

Disadvantages

Nothing comes free of course.  There are some disadvantages to establishing and running your own site.

An especially important element of a store is visits – akin to footfall in real life stores.  You must get people to visit.  You get the visits by making the links with people using a variety of communications.  You need to combine social media with the creation of newsletters, direct mail, blogging, etc.  These relationship building efforts are vital to get people to your website and store.

There are costs relating to hosting fees and one-off fees for the building of the website.  The online stores also charge fees in different ways, so a careful comparison of the best-looking services is important.

There will be additional administration in comparison to an online marketplace.

Questions for E-commerce Site Building
       
What are the facilities for integration of Etsy offerings into your own store? Will separate loading be required?

Is drag and drop site building supported? Is there user support or a user group to support you?

Is an integrated shopping cart available?  What are the order fulfilment assistance options?

Will the site support expanded functions as your business grows?  How adaptable it the site to changes in business?

Is the e-commerce site a market place?  How will exposure of the site to potential buyers be managed?

What is the cost for the features you want?

       
The Balance

You must decide whether the advantages of having your own e-commerce site outweighs the disadvantages in terms of traffic, time spent developing relationships, administration and cost

Wednesday, 3 July 2019

Websites for Selling Craft




This is not a discussion of which site to choose, but a range of things you need to think about when considering which site to use for selling your craft items.  This includes whether to have your own e-commerce site instead of, or in addition to, a market place site.


Evaluating website offerings requires you to think about a multiplicity of things.  Many of these are listed here, although there may be a few additional things you need to think about for your products.

Recognition/Visits/Traffic

You need to think about the amount of recognition the marketplace has.  Is it the place your potential buyers know about?  Are there a lot of visits to the site?

Is it a market place offering where the website promotes the whole site and the shops within it?  Or is it a site where your own efforts to drive traffic are required? This latter element is like having your own site.

What is the competition within the site? Are there many other sellers of your kind of product? How easy will it be to distinguish your things from others?  Are there mass production sellers on the site?
       
How selective is the site in approving sellers?  This also relates to reputation.


Reputation and Products for sale

Is the site restricted to craft made items? How are mass production manufacturers eliminated?

What range of products are allowed? Is it possible to sell services, and digital products as well as physical goods?

Is the site focused on general products or arts and crafts?  What pricing levels are exhibited on the site?  Is the focus on arts-based items, or does it include bargain basement and cheap deals?

What is the level of security of transaction information offered to you and your customers?  It is vital that the site offers good security for transactions to give customers confidence in buying from the site.


Your identity

Whatever site you join, there will be many other sellers or shops.

Do you get your own shop? Or are all similar products grouped? Is there support or templates to set up your shop?

If you have your own shop what degree of control do you have?  How are images formatted?  What amount of text can be included?  What range of formats are allowed?  Does the site brand dominate, or can you have yours as the prime visual?  What number of themes are available to you?

What level of flexibility in store arrangement and titles do you get?  What number of pages do you get at the various plan levels? How much flexibility and customisation is allowed? What number of items per page are allowed? And what descriptions are allowed either in length or number of terms?

What are the restrictions on the number of products you can sell? Are you allowed discount codes?  Is there inventory control with the site? What is the assistance for order fulfilment?  How much and what features? Is there a system set up for returns? How much support is available?

Are searches restricted to your shop or for all shops on the site?  How are the meta tags used by the site? Are hyperlinks within site only or allowed to outside sites too? Are social media buttons available and with what flexibility?  Can you use your own domain name?


Connections with other e-commerce sites

Are connections allowed?  How easy is the linking? Can you link to multiple sites? Are links to social media – Facebook, etc. – allowed? And how are they managed? Can you link the potential customer to mobile phone sales?


Costs

Of course, there are always payments to be made. You need to look at the various options offered, and the charges involved in them.  If you are new to online selling or have low volume sales, it may be that higher selling fees rather than regular payments with lower transaction fees is better for you at the start.

Listing costs are normally linked to number of items you are offering in your shop. There may be refreshing fees – you must pay a fee to keep the product in the shop after a set period.

There will be continuing fees.  These may be in relation to each item – commission - either as you sell or related to the plan level you choose. Are the commission fees in addition to the listing fees?  Are there additional credit card fees?

Plan level costs are ongoing fees that may be monthly or annual. They are often linked to the length of contract between you and the site provider.  They will give different levels of item fees, and levels of features.  What are the costs of the plan levels? What benefits to they give, and do you need them?  What level of functionality do you get in relation to plan level costs?  How are the plan levels related to the volume or value of sales?

What is the ability to expand and grow through graded plans?  How and when can you move from one plan to another?





Administration

The costs of doing business online may be significant. They may also be related to your familiarity with online offerings.

The creation of an entry should be easy and flexible. You should find it easy to move around the listing form, and it should contain a significant amount of flexibility.  You should be able to make bulk changes.  It should be easy to move items and entries around your shop. 

How much control do you wish to have?  With less experience, you may want to have a lot of the listing, editing of pages, especially contact information done for you, or highly guided.   The kind of support is important. Does the site have a maker support community?

An often-unrecognised level of administration is inventory management. Does the site support that?  If the site does not have inventory control you will have to do it yourself. If you don’t have the stock to satisfy the order, you probably will lose the sale. 


Is the site easy to use?
An important general question is the ease of use for you and for customer. Test the sites out for how easy it is to find and buy an item.  Look at how easy it is for you to use the tools to list your products.


Reviews of e-commerce sites

There are sites that review the offerings of various sites to help you answer some of the questions listed above.  One I have found to be helpful is Ecommerce Guide.

The answers to the relevant questions listed here will assist you toward choosing a website that suits your needs.  It may also lead you toward considering a stand-alone ecommerce site if there are not enough positives in your review of market place sites. It may lead you to consider both.  But the more sites you have the more important it is to be able to link between them and move entries between sites.

A discussion of various things that need consideration on whether to sell on line at all is here.