Simple Pen Pricing Model

YoYoSpin · 02-19-2007, 03:27 PM

If you have Excel, dial in here and use your own numbers to play with the model: http://yoyospin.com/pricing_model_pens.xls

Note that page one of this file has a similar model for bottle stopper pricing.

And, if you don't have Excel, here are the same files in pdf:
http://yoyospin.com/pricing_model_pens.pdf
http://yoyospin.com/pricing_model_stoppers.pdf

thewishman · 02-19-2007, 03:49 PM

Thanks, Ed. I have been trying to figure out pricing - pretty much guesswork and local conditions up to now. I wish I could turn 5 pens/hour.

Chris

Stevej72 · 02-19-2007, 03:58 PM

Ed, thanks, that is very helpful. Also, I bought your closed end pen DVD from AS and it came the other day. Lots of information, I learned a lot. Great value for the price.

Marc Phillips · 02-19-2007, 05:03 PM

Thanks Ed.... that's excellent... get it?... excel lent? ... geez, I crack myself up [:D]

All kidding aside, that spreadsheet is great... thanks again [:)]

wicook · 02-19-2007, 06:28 PM

Thanks for sharing, Ed.

Marc...you'd better be careful with that sense of humour...it's getting close to being as sharp as a skew!! [:D]

Rudy Vey · 02-19-2007, 07:24 PM

Ed,
this is great!! I tried it for a number of my pen types I make and sell a lot (Barons, FT's and Slimline) and I was amazed how close the different pricing calculations came to mine. I worked very well for standard wood pens, but then I used it for my Titanium pens and here the difference between the program and what I can get for them was quite large. The problem was that Titanium prices went up like hell and it is very labor intensive.
But nevertheless, I like this approach and keep a copy on my computer.
Thanks!

woodpens · 02-19-2007, 08:08 PM

Nice job, Ed. That is a very intelligent pricing model. I am due to update my prices and will use this with a great deal of weight in the final decision. Thanks for sharing it!

JohnLifer · 02-19-2007, 09:22 PM

Thanks for the spreadsheet. One thing though, you show $30 per hour for your labor, unless you are paying someone else, or are incorporated, this is profit also and is taxable. If you are a self proprietor, your labor expense it taxable.

YoYoSpin · 02-19-2007, 09:40 PM

There are lots of ways to slice and dice the tax code, and that’s not really what this model is trying to address.

Everyone should feel free to change the model to accommodate their particular situation. If you’re just a hobbyist for example, with no business entity, then the direct labor rate and profit figures could be merged into one item.

For me, the model is set up so that there are two taxable entities...Davidson LatheCraft LLC pays tax on the 8% profit and I would have personal taxable income based on the $30 per hour rate that the LLC pays me.

Hiram33 · 02-19-2007, 10:17 PM

very nice spread sheet will come in handy

02-19-2007, 03:27 PM	#1 (permalink)
YoYoSpin Join Date: Feb 2004 Location: Colorado Springs, Colorado, USA Posts: 1,335 Photos: 559	Simple Pen Pricing Model If you have Excel, dial in here and use your own numbers to play with the model: http://yoyospin.com/pricing_model_pens.xls Note that page one of this file has a similar model for bottle stopper pricing. And, if you don't have Excel, here are the same files in pdf: http://yoyospin.com/pricing_model_pens.pdf http://yoyospin.com/pricing_model_stoppers.pdf __________________ Best regards, Ed Davidson Colorado Springs, CO http://yoyospin.com

02-19-2007, 03:49 PM	#2 (permalink)
thewishman Join Date: Mar 2006 Location: Reynoldsburg, Ohio, USA. Posts: 5,103 Photos: 0	Thanks, Ed. I have been trying to figure out pricing - pretty much guesswork and local conditions up to now. I wish I could turn 5 pens/hour. Chris __________________ Chris Non Impedite Raditioni Cogitationis. (Unencumbered by the thought process.) Tom and Ray Magliozzi

02-19-2007, 03:58 PM	#3 (permalink)
Stevej72 Join Date: Apr 2006 Location: Billings, MT, USA. Posts: 1,502 Photos: 0	Ed, thanks, that is very helpful. Also, I bought your closed end pen DVD from AS and it came the other day. Lots of information, I learned a lot. Great value for the price. __________________ Steve Billings, MT http://www.etsy.com/shop/JansPens

02-19-2007, 05:03 PM	#4 (permalink)
Marc Phillips Join Date: Jun 2004 Location: Columbus, GA, USA. Posts: 900 Photos: 0	Thanks Ed.... that's excellent... get it?... excel lent? ... geez, I crack myself up [:D] All kidding aside, that spreadsheet is great... thanks again [:)] __________________ Marc Phillips Columbus, GA www.woodhelp.com

02-19-2007, 06:28 PM	#5 (permalink)
wicook Join Date: Jan 2005 Location: Sherwood Park, AB, Canada. Posts: 403 Photos: 0	Thanks for sharing, Ed. Marc...you'd better be careful with that sense of humour...it's getting close to being as sharp as a skew!! [:D] __________________ Bill in Sherwood Park, Alberta ------ Making lots of shavings is easy...leaving something pretty behind is harder.

02-19-2007, 07:24 PM	#6 (permalink)
Rudy Vey Join Date: Jan 2004 Location: South Plainfield, NJ, USA. Posts: 2,011 Photos: 14	Ed, this is great!! I tried it for a number of my pen types I make and sell a lot (Barons, FT's and Slimline) and I was amazed how close the different pricing calculations came to mine. I worked very well for standard wood pens, but then I used it for my Titanium pens and here the difference between the program and what I can get for them was quite large. The problem was that Titanium prices went up like hell and it is very labor intensive. But nevertheless, I like this approach and keep a copy on my computer. Thanks! __________________ Rudy Central New Jersey 'If you lend someone $20 and never see that person again, it was probably worth it.' www.ultimatependesigns.com

02-19-2007, 08:08 PM	#7 (permalink)
woodpens Join Date: Feb 2004 Location: Webb, AL, USA. Posts: 896 Photos: 0	Nice job, Ed. That is a very intelligent pricing model. I am due to update my prices and will use this with a great deal of weight in the final decision. Thanks for sharing it! __________________ Jim Lambert (Webb, AL) Woodpens.com IAP Shirts & Bethlehem Olivewood http://www.woodpens.com/pen_turners.htm

02-19-2007, 09:22 PM	#8 (permalink)
JohnLifer Join Date: Feb 2007 Location: Clinton, MS, USA. Posts: 53 Photos: 0	Thanks for the spreadsheet. One thing though, you show $30 per hour for your labor, unless you are paying someone else, or are incorporated, this is profit also and is taxable. If you are a self proprietor, your labor expense it taxable.

02-19-2007, 09:40 PM	#9 (permalink)
YoYoSpin Join Date: Feb 2004 Location: Colorado Springs, Colorado, USA Posts: 1,335 Photos: 559	There are lots of ways to slice and dice the tax code, and that’s not really what this model is trying to address. Everyone should feel free to change the model to accommodate their particular situation. If you’re just a hobbyist for example, with no business entity, then the direct labor rate and profit figures could be merged into one item. For me, the model is set up so that there are two taxable entities...Davidson LatheCraft LLC pays tax on the 8% profit and I would have personal taxable income based on the $30 per hour rate that the LLC pays me. __________________ Best regards, Ed Davidson Colorado Springs, CO http://yoyospin.com

02-19-2007, 10:17 PM	#10 (permalink)
Hiram33 Join Date: Apr 2006 Location: Plantsville, CT, USA. Posts: 180 Photos: 2	very nice spread sheet will come in handy

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