28/06/2024
Understanding this will make a entrepreneurs job easier sometimes, but some need to explain a little further to educate. 😉
A customer asked me how much it cost to do this job....
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 welder, grinder, chop saw, drill press, welding hood, gloves etc...
- But I don't have all these equipment and I can't buy all of these for one job.
- Well then for another $300 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 and be on time
- At 6??? Nope! Too early for me! I used to getting up later...
- You know, I've been thinking. Y ' all better get the job done. I'd rather pay you the $1500. If I had to, it wouldn't be perfect and it would cost me a lot more.
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
Critiquing the work of others based on pricing is not fair. The fees I would charge for a similar task are considerably higher than what is indicated here, but the emphasis lies in the principle rather than the specific amount.
Only by knowing all the elements necessary for the production of a certain work can you estimate the actual cost.
