Thread: Silky Oak

1) work out what you want to charge for your labour - eg : $40 / h

2) go to a timber supplier and get them to quote prices for silky oak (so you have a yardstick to measure what your stock is really worth)

3) make an item you intend to produce, keep a log book for each sub process you perform in time and material (eg ripped boards for top, dont include time such as glueing wait time unless your production stops due to lack of clamps for example...) include tasks such as sharpening and cleaning out dust extractor. count out the processes in minutes. add the time together at the end.

this should give you a accurate summary of your time and materials.

Dont forget storage, transport and marketing costs (eg stand at local markets) include your markup for GST & "asethetic value" and there you have it.

Keep log books. keep receipts. dont forget to declare at tax time.

cheers

Originally Posted by Zed

1) work out what you want to charge for your labour - eg : $40 / h

2) go to a timber supplier and get them to quote prices for silky oak (so you have a yardstick to measure what your stock is really worth)

3) make an item you intend to produce, keep a log book for each sub process you perform in time and material (eg ripped boards for top, dont include time such as glueing wait time unless your production stops due to lack of clamps for example...) include tasks such as sharpening and cleaning out dust extractor. count out the processes in minutes. add the time together at the end.

this should give you a accurate summary of your time and materials.

Dont forget storage, transport and marketing costs (eg stand at local markets) include your markup for GST & "asethetic value" and there you have it.

Keep log books. keep receipts. dont forget to declare at tax time.

cheers

Thank you, I'll give it a go.I think it might be best to try a few smaller items around the $200 to $400 mark first and see how I go.

Chook - hiya ... I too love silky oak though have always felt it too highly decorative to make large pieces from ..... I feel it lends itself beautifully to smaller pieces like walla hung cabinetry and frames. This isn't always the case, and certainly only my opinion - but whenever I have seen bigger items like bookcases and robes from silky, I feel overwhelmed by its figure. I have used it successfully as a detail trim on a very large bookcase (3M x 3M) with Aust. Cedar as the main material. I will dig through my archives here and post what I feel it would lend itself best to ..... once again, only my opinion on this beautiful timber.

Cheers

Granted none of these are made from S.O. I feel they really lend themselves to the timber.

Hope it is a little helpful

Would love to see some of your work!

>

> BTW The reason they are in multiple posts is due to a 5 file limit on each post

apologies but many of the images are full size in their thumbnail form ..... hope they give some idea anyway

Originally Posted by Zed

Keep log books. keep receipts. dont forget to declare at tax time.

cheers

You funny monkey.

Al

Originally Posted by Zed

Keep log books. keep receipts. dont forget to declare at tax time.

But when you do declare at tax time don't forget to deduct ALL your expenses. There are a myriad of deductions Zed did not mention. To give you some idea of what you could claim :

Prorata share of rates for your workshop,

Cost of electricity for running your workshop,

Prorata share of the cost of your telephone and calls made.

Depreciation on your tools,

Prorata share of insurance with your workshop,

Prorata share of the cost of your internet ( Access to this board is searching for ideas for things to make),

Cost involved in running your bank account,

Stationary,

Protective clothing and boots,

Cost of running a motor vehicle for business purposes,

That is just without thinking, go and visit a good bean counter and you will get a reasonable income from your hobby and get the taxman to pay you as well.


Peter.

Originally Posted by Sturdee

and get the taxman to pay you as well.


Peter.

Peter, thats unthinkable. :eek:
Cheating on the nice taxman.

Al

Originally Posted by ozwinner

Peter, thats unthinkable. :eek:
Cheating on the nice taxman.

Al

Tax evasion is wrong and should never be considered by anyone, but paying too much tax is plainly stupid and should not be done either.

Tax avoidance is the noble art of bean counters :eek: , of which I used to be one, based on the famous 1935 judgement in the English house of Lords which is binding on our courts. This case decided that it is legal to organize your financial affairs in such a way that you pay the least amount of tax. Therefore he should claim all these deductions when declaring his income.

BTW Don't you claim these deductions seeing you are actually making things to sell.


Peter.

Chook, if you want to do business, start by NOT calling yourself useless. There is nothing wrong with being a good businessman.

So, you want to know how to work out your prices?

You can follow some of the advice above, an you may get it right.
Otherwise use the following fool proof system that I used for the many years I owned a small furniture factory.

Add up all your materials to make your table and remember the timber is at timber yard price. So timber, screws, glue, laker, you name it you list it.

Add all up and suppose it all comes to $100.
If the job is a simple one, without too much fiddling, multiply by 3.
If it is really complicated with carving or intarsia or turned parts, and time consuming multiply by 4.

The logic behind this formula is that the cost of materials and labour tend to be similar, and you need a third component in your price for the business itself, so you have 100 in materials, 100 for labour and 100 for the business. If all of the above happens to be the same person and you found the timber on a tree, the price should be the same regardless.

Good hunting and remember that you are what you think, so start thinking about yourself as a good businessman.

Originally Posted by Sturdee

BTW Don't you claim these deductions seeing you are actually making things to sell.


Peter.

But of course mon ami.

Al

Originally Posted by Sturdee

BTW Don't you claim these deductions seeing you are actually making things to sell.

Nicely put re tax evasion,but Peter, as I understand it (and I'm wading WAAAAAAY into your turf here! ), you must make them to sell and INTEND to make a profit.

If you are a poor business person, and don't actually make a profit, (OK you make a loss), you should be able to write off that loss against other income.... at worst your pension would be safe!

I suspect that depreciation on machinery could add up to a considerable portion of income in a cottage industry?

Cheers,
P (Who loves paying his share of tax, 'cause it means he's making his share of income!!)