Why? I know exactly what my costs are.
The point is labour (an hourly rate) is a cost.
From a non-conscientious employee's POV hourly wages are great. I
don't see how taking the time to figure out how much I make per
hour or per millisecond matters.
This is how most businesses functions, they know how much per hour
to charge. They can also estimate how long it’s going to take them
etc. etc etc.
With your example of 12 rings at once, lunch break, cooling time,
you’d use a bench mark. You make one ring, and that’s a ball park
bench mark. You know how long it will take you, and you can charge
this to a customer. If you have 12 rings to do and you can work
faster by doing 12 that’s extra money in your pocket… a bonus for
finishing faster. Time equals money, that time you save is yours to
either do more work or take the afternoon off.
I’m sure you do work faster than me as I’m only a first year
jeweller, but it’s a good question.
As I am a first year jeweller, and I work at a slower rate, it’s
only fair to other jewellers and the customers if my hourly rate is
less. As my skills increase, and my speed improves I could increase
my hourly wage.
As a professional person running a jewellery business you should
have worked out an annual figure (a yearly wage), and work backwards
from there to get your hourly rate. A lot of business fail as they
work the other way around and are confused why they don’t have money
to pay the bills.
An hourly rate is good for the customer and the jeweller. The
conscientious worker gets rewarded when an hourly rate is known. The
non-conscientious worker that you mentioned would lose out. I don’t
know any jeweller that charges after the work is done, it’s usually
an agreement of price before work starts. The customer gets a quote
and decides whether to let the jeweller proceed.
When I buy stuff from Stuller or whomever, I mark it up, therefore
This is where the rub comes in. A mark up doesn’t necessarily mean
you’ll make a profit. If there’s more work involved, advertising
costs, gas, utilities etc. etc.etc., these can eat into your profit.
Heck, it's your life! Of course its valuable. Good thing you love
Another saying my Dad said “My time is worth nothing”.
I really don’t like that saying, he could have earned more without
that ball and chain. He was always complaining that he didn’t have
You’re quite right I do love my job/s, but I’m going to do this
right, so that I can cover all my costs, and be able to charge the
No, my method helps me to adjust to the market.
So your method is reactive, not proactive… interesting.
Regards Charles A.