15/04/2023
Every now and then, you get a client that says: “you’re too expensive”.
Firstly, by the time a farrier is 50 his career is mostly over, the body is worn out, making a full time income is no longer feasible.
Secondly, Farriers get no holiday pay, or sick leave, and; injury insurance is ridiculously expensive!!!
Now that we’ve got that out of the way, the average farrier charges $150 for a new set of shoes, with the more expensive farriers charging around the $200+ mark.
So let’s break these costs down so that we can dispel the myth that farriers “make a fortune”!
$150 Shoeing price
Direct Cost of goods sold — Expenses:
Shoes — $34
Nails — $3.50
Rasp — $3.50
Total direct cost of goods = $41
Profit less direct costs $150 - $41 = $109
That’s the direct costs, but there are also operating expenses also…
Operating expenses (car costs, insurances, accounting, gas for forge etc). Operating expenses are best looked at as a percentage as they’re averaged across the whole year.
Operating expenses average around 17%
17% = $18.53 of $109
$109 - $18.53 = $90.47
But what about Super and TAX!!!!!
GST = 10%
SUPER = 12%
INCOME TAX = 32.5%
$90.47 less GST = $81.42
$81.42 less super = $71.65
$71.65 less Income tax = $48.36
FROM $150 THE NET PROFIT THAT THE AVERAGE FARRIER GETS TO KEEP ”IN HIS POCKET” IS:
$48.36
Hardly the millionaire in the making!
Oh and let’s not forget a lot of clients expect their lost shoes fixed for free, reducing this final profit price even lower!!!
P.s most farriers don’t pay super because they can barely afford to live as it is.
Most farriers do it because they love it, love being around the horses, love seeing a horse walk away better than they walked in.
Do you still believe a farrier over charges?
Let me know your thoughts in the comments.