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cost of doing business

updated fri 31 jan 97


Dan Taylor on sat 4 jan 97

Having just rejoined Clayart after a break for the busy Christmas season, I
noticed a thread regarding the cost of potting...always of interest to me.
Not sure when it started and hope my contribution is not redundant. Also
noticed your post Sam re the cost of making a mug. Hope your list of what
is involved is tongue-in-cheek. If not, I'd sure look seriously at
simplifying your process or make sure you're getting at least $40.00 for a
mug. ;-)
A look at my last years records shows that the expenses on my income
statement amounted to 63%. However, this included a "non-expense" of 7% for
depreciation of equipment. So, the actual out-of-pocket expenses came to
about 55%. Of this, studio material costs for clay, glaze materials, etc.,
came to 15%. The next highest expense was wages at 12%. (I have a full-time
assistant who works 25 hrs./wk. If anyone wants some discussion on the
economies of having an assistant, e-mail me privately. No need to bore
Clayarters not interested) The only other major expenses were Utilities 5%,
Advertising and promotion 4%, and Shipping 3%. If anyone wants more detailed
info, I'll gladly share whatever I have.
Dan Taylor Ph: (403) 527-1002
1340 - 10th Ave. NE Fax:(403) 527-1032
Medicine Hat, Alberta e-mail:
Canada T1A 6G3

Dan Taylor on mon 6 jan 97

Wendy from Bainbridge Island WA wrote...

"I have recently had a wholesale customer that is out of state request that I
give them NET 30. (They want to pay within 30 days after receipt of goods).
This is the second time I have sold to them. The last time was a year ago
and was COD.
What are your feelings on this? I am having mixed feeling and would like to
know others opinions."

When approached by a new outlet my policy is to first ask for the names of
other potters whose work they carry and check with them re payment history.
If the store passes this test, then I ask for a substantial opening order,
usually around $1000 min, although I don't place a dollar figure on that,
and I request COD for the first shipment with 30 day net thereafter. This
establishes two things. It means the store will be carrying a good
representation of your work, and it means they are serious about wanting you
in their store. However, if you are having mixed feelings about this store,
you should ask yourself why and satisfy that concern before doing business
with them.

Wendy from Bainbridge Island WA
Dan Taylor Ph: (403) 527-1002
1340 - 10th Ave. NE Fax:(403) 527-1032
Medicine Hat, Alberta e-mail:
Canada T1A 6G3