How much

[tom 748]

rip of,

 

[Kent]

Of course you're not going to sell 30 a week.
You'd make 30 a year, then use the production facilities to make other products.
Either way, the production costs aren't going to be as high as you stated, and thus the profit margin is going to be much higher.

I'm lucky, I don't have to earn a living - I sold my business and retired early.

I'm studying for my MBA now, so this is just like homework.

Disagree, do you know about my past work in pure buisness ? Trust me I do know what I am talking about
There are other facets to "other products" and marking at 10% won't get you far so your better staying focused and minimising stock type Imo.

People it's a guess off the top of my head not a buisness plan. Even the most costed buisness plan is usually more to convince the bank you have thought it through not an exact operators manual.

Buisness plans equate to military sop. The enemy knows your sop so you improvise, adapt and overcome constantly..

 

[cumbriasteve]

I was asked by a couple of local garden centres about supplying gates, hanging brackets and the like, they expected a 100% mark up when selling on sale or return, or 200% if buying in.

At first I was annoyed and considered them greedy but with a bit of thought about wages, rates, insurance, electric and probably many more costs I was not aware of the 100% did not seem a lot to expect.

Then of course there is the basic rule of business, charge as much as the market will stand, just because an item costs 50p does not mean you have to sell for £1 when the public are happy to pay £20.

 

[Kent]

There’s a lot of arm chair hero’s on this thread stating how easy it would be and how much net profit they’d making knocking out the same stuff.

There’s also guys on here that do this sort of stuff for a living telling you it’s not that simple.

I’ve been working on getting a new business off the ground manufacturing retail product for the last 2.5 years. It’s turning over strong money and our product has a lot more profit margin % than those tables.

Two of us are working 70 hours a week and haven’t taken a penny out of the business. In fact our directors loan accounts owe us plenty.

Soon we will turn a corner and the business will start paying out well. At that point should I be knocked for making a decent profit? Yes you could make something similar to what we sell in your spare time for less money.
Try making 100000 per year and earn a living from it, I dare you!

All big number sales scare me today if the margins ain't massive. Things certainly change way faster now.
Perhaps I am just chicken now?
Very best success our nation needs more businesses that succeed and prosper

 

[Kent]

I was asked by a couple of local garden centres about supplying gates, hanging brackets and the like, they expected a 100% mark up when selling on sale or return, or 200% if buying in.

At first I was annoyed and considered them greedy but with a bit of thought about wages, rates, insurance, electric and probably many more costs I was not aware of the 100% did not seem a lot to expect.

Then of course there is the basic rule of business, charge as much as the market will stand, just because an item costs 50p does not mean you have to sell for £1 when the public are happy to pay £20.

I think the step change today is if your making money others will soon notice and you have so long to diversify or sell up at what you see as the peak.
Not sure if it's globalisation or the Internet but it's certainly different from small companies to mega firms the story is similar

 

[cumbriasteve]

I think the step change today is if your making money others will soon notice and you have so long to diversify or sell up at what you see as the peak.

I had a perfect example of that, I made a small item and put it on ebay, there were others but my design was right and they sold great, about 20 a week, so for a hobby it was good going.

Within 6 months there were five others selling the exact same design and cutting each others throats, I had made a killing and was not interested in working for nothing so left them to it, there is probably a dozen doing it now and none of them are making any real money.

 

[bigegg]

Disagree, do you know about my past work in pure buisness ? Trust me I do know what I am talking about
There are other facets to "other products" and marking at 10% won't get you far so your better staying focused and minimising stock type Imo.

People it's a guess off the top of my head not a buisness plan.

@Kent :
Sorry, I didn't mean to imply that you don't know what you're talking about.
I'm sure you do.

But...
Your figures in your example just don't add up.
It was you that said 10% marketing.
It was you that said "30 per week"

You say it was a "guess, not a business plan" - Im just pointing out where your "guess" could *possibly* be wrong.

I mean think about it: by your figures, six hours labour per table. £60 premises cost.
Nobody with more than half a brain is going to pay £60 to rent a shed for half a day.
I ran the figures for a 50% "marketing cost" and my figures for everything else. (Based on a 40man-hr week, so £36 per table premises cost)
Gives a loss of £6 per table BUT (assuming 50% of employee costs ends up in employees pocket) there's a wage of £40 per table.

I can rent a 20ft portacabin workshop here in s. Leeds for £40 a week including bills.
Double that to pay for a van.
Break even then becomes just over two tables a week, and a wage of c.£80 for a day's work.
Find another product with same markup and costs, and that's £160 for two days work (not including "management") but £72 profit.

 

[ukracer]

I had a perfect example of that, I made a small item and put it on ebay, there were others but my design was right and they sold great, about 20 a week, so for a hobby it was good going.

Within 6 months there were five others selling the exact same design and cutting each others throats, I had made a killing and was not interested in working for nothing so left them to it, there is probably a dozen doing it now and none of them are making any real money.

I am intrigued now .......what were they.

 

[ukracer]

@Kent :
Sorry, I didn't mean to imply that you don't know what you're talking about.
I'm sure you do.

But...
Your figures in your example just don't add up.
It was you that said 10% marketing.
It was you that said "30 per week"

You say it was a "guess, not a business plan" - Im just pointing out where your "guess" could *possibly* be wrong.

I mean think about it: by your figures, six hours labour per table. £60 premises cost.
Nobody with more than half a brain is going to pay £60 to rent a shed for half a day.
I ran the figures for a 50% "marketing cost" and my figures for everything else. (Based on a 40man-hr week, so £36 per table premises cost)
Gives a loss of £6 per table BUT (assuming 50% of employee costs ends up in employees pocket) there's a wage of £40 per table.

I can rent a 20ft portacabin workshop here in s. Leeds for £40 a week including bills.
Double that to pay for a van.
Break even then becomes just over two tables a week, and a wage of c.£80 for a day's work.
Find another product with same markup and costs, and that's £160 for two days work (not including "management") but £72 profit.

Still got to sell them.....

 

[vwmark]

Did you try selling direct, or is that a tough market to break into ?

We did. Company was biggest disc pad manufacture in UK but this is the standard kind of mark - up.

We sold v brake pads to tesco for 40p a pair and they sold for £2.

 

[cumbriasteve]

I am intrigued now .......what were they.

I actually had several lines that all sold well but the one's I mentioned were fat ball hangers for garden bird feeding.

You would be amazed how many people spend a lot of money feeding wild birds, I must have shifted over 500 in 6 months, could make 20 a day easily so it was an easy earner but soon stops being an enjoyable hobby when you become a production line

I found the fun was designing an item that became a success and beating others, after that the fun sort of went and I lost interest.

 

[ukracer]

I actually had several lines that all sold well but the one's I mentioned were fat ball hangers for garden bird feeding.

You would be amazed how many people spend a lot of money feeding wild birds, I must have shifted over 500 in 6 months, could make 20 a day easily so it was an easy earner but soon stops being an enjoyable hobby when you become a production line

I found the fun was designing an item that became a success and beating others, after that the fun sort of went and I lost interest.

View attachment 134644

Cool....a guy in town has an outside table shop that sells just biscuits for dogs.....and i mean the type of thing you would see in a real cake shop for humans......rakes it in apparently.

So yeah i can imagine it sold well...but can also imagine how a hobby turned business soon becomes labourious.

 

[bigegg]

Still got to sell them.....

Hence the 50% "marketing cost"

 

[Keith 66]

It has taken me 40 years to realise that making stuff & selling it is very often a mugs game,The majority of the public are accustomed to paying chinese prices for everything. But they still want British quality. I have run two buisinesses both boat repair & building. Unless you are lucky & own your premises you will have to rent. Down here it got to the point where rents are so high the average joe will mostly be working for the man.
So you have a good idea for a good product, Roughly in order of who wants their money it goes something like this, Rent to Landlord, Rates, Accountant, Taxman(if you earn enough) Employee/s wages & pension (If you have got far enough to need them) Insurance, Marketing, profit??? Retailers or sellers mark up, Transport, Leccy, heating, , IT, Bosses wages starting to look a bit thin by now?
I take my hat off to anyone who makes a go of it. You have to have real drive to win out.
As for me i have a part time job that keeps me afloat & a small workshop at home, in there i can play with nice projects & make stuff. Occasionally i might even sell summat!

 

[Kent]

@Kent :
Sorry, I didn't mean to imply that you don't know what you're talking about.
I'm sure you do.

But...
Your figures in your example just don't add up.
It was you that said 10% marketing.
It was you that said "30 per week"

You say it was a "guess, not a business plan" - Im just pointing out where your "guess" could *possibly* be wrong.

I mean think about it: by your figures, six hours labour per table. £60 premises cost.
Nobody with more than half a brain is going to pay £60 to rent a shed for half a day.
I ran the figures for a 50% "marketing cost" and my figures for everything else. (Based on a 40man-hr week, so £36 per table premises cost)
Gives a loss of £6 per table BUT (assuming 50% of employee costs ends up in employees pocket) there's a wage of £40 per table.

I can rent a 20ft portacabin workshop here in s. Leeds for £40 a week including bills.
Double that to pay for a van.
Break even then becomes just over two tables a week, and a wage of c.£80 for a day's work.
Find another product with same markup and costs, and that's £160 for two days work (not including "management") but £72 profit.

How the heck do you make 30 tables in a Porto?
Being straight now premises suitable for making the product mentioned and don't forget all the bits like commercial waste collections, insureance on the premises, power, upkeep heck again its off the top of my head not a buisness plan but you seem to be aptly making a great example about how a lot of businesses turn in a net loss with what looks on the face of it as a great idea with sales and turnover that looks ideal..

I own my premises, the land its built on and the road in outright - it still has a cost, its just I don't have to fork it out the bank at the end of the month

 

[Kent]

I actually had several lines that all sold well but the one's I mentioned were fat ball hangers for garden bird feeding.

You would be amazed how many people spend a lot of money feeding wild birds, I must have shifted over 500 in 6 months, could make 20 a day easily so it was an easy earner but soon stops being an enjoyable hobby when you become a production line

I found the fun was designing an item that became a success and beating others, after that the fun sort of went and I lost interest.

View attachment 134644

Frankly once I had proven such a thing and how well it sold, it would be placed in the hands of a buying agent and sent abroad for manufacture by the shipping container load.
Because if you don't someone else will, this is it with ebay people can see your product and the numbers sold. Even doing repeated listing saying three in stock two sold can be reckoned up if its a type of product your into.

There ain't much money in making any std measurement item here In the UK in quantity

 

[8ob]

Frankly once I had proven such a thing and how well it sold, it would be placed in the hands of a buying agent and sent abroad for manufacture by the shipping container load.
Because if you don't someone else will, this is it with ebay people can see your product and the numbers sold. Even doing repeated listing saying three in stock two sold can be reckoned up if its a type of product your into.

There ain't much money in making any std measurement item here In the UK in quantity

Very true unfortunately , in this country we are top of the tree for brains, design and development but fall down badly bringing things to market due to high production costs. The yellow peril can copy , put into production and market just anything within weeks.

Bob

 

[Kent]

Of course there is always the Starbucks principle..
They all said you can't sell a cup of coffee for that much fools!
However ................
And now they are all at it

Its about a quid at mcdonalds, comes in the same type of cup and actually its good stuff and way better than any of thier food items. Oooo those marketeers are vewy, vewy clever!

You see that's what you call branding.

 

[bigegg]

How the heck do you make 30 tables in a Porto?
Being straight now premises suitable for making the product mentioned and don't forget all the bits like commercial waste collections, insureance on the premises, power, upkeep heck again its off the top of my head not a buisness plan but you seem to be aptly making a great example about how a lot of businesses turn in a net loss with what looks on the face of it as a great idea with sales and turnover that looks ideal..

I own my premises, the land its built on and the road in outright - it still has a cost, its just I don't have to fork it out the bank at the end of the month

Premises big enough to make 2 tables a week (a Porto) is £40 a week.
Premises to make 30 a week - and double that - is 200 a week. INCLUDING all bills + upkeep + buildings insurance.
Transport would be reasonable at £120 a week.
And a skip a month is £160 - so another £40 a week.
STILL not close to the 1800 a week that you implied in your original post.

I'm NOT saying that it would be a viable business - not without other products.
BUT : not as bad you said it would be.

Certainly, I don't think that a table such as that could be produced for much less. In this country, at least.

 

[Kent]

Premises big enough to make 2 tables a week (a Porto) is £40 a week.
Premises to make 30 a week - and double that - is 200 a week. INCLUDING all bills + upkeep + buildings insurance.
Transport would be reasonable at £120 a week.
And a skip a month is £160 - so another £40 a week.
STILL not close to the 1800 a week that you implied in your original post.

I'm NOT saying that it would be a viable business - not without other products.
BUT : not as bad you said it would be.

Certainly, I don't think that a table such as that could be produced for much less. In this country, at least.

Let's just put it this way and leave it there , I won't be trying it but your welcome to