Paul Lewing on wed 27 jul 05
on 7/27/05 12:53 PM, Jeanette Harris at monkeymind@COMCAST.NET wrote:
> that's $19,200 net income.
>
> But wait, you must pay taxes on that net income, so
> subtract 25% for taxes: $ 4,800.
> $ 19,200 - $ 4,800 = $ 14,400 Real net income
>
> Divide 12 months into $ 14,400 = $ 1200 per month true income.
But wait! It's not 25% in taxes. It's just over 40% in federal taxes (28%
income tax, 12.3% Social Security and Medicare tax, if you're
self-employed).
So subtract $7680. That's $11520 = $960 per month.
Paul Lewing, Seattle
Jeanette Harris on wed 27 jul 05
Here's an exercise that was presented during a demo some years ago at
the Oregon Potter's Association Portland Showcase. I jotted it down
at the time and found my notes this morning:
Clay income calculation
Say you want an income of about $75,000 per year. Sounds good.
But won't sell everything you make, but through good marketing, you
sell, say at least, 85% of your inventory:
$75,000 x .85 = $ 63,750. Still sounds pretty good. But wait.........
If you pay 50% gallery commission*, that's $ 31,875
Let's round it up to $32,000. So this is the net you would get from sales.
But you must calculate your overhead into this equasion.
Take 40% off for overhead: $ 32,000 x .4 = $12,800,
so that's $19,200 net income.
But wait, you must pay taxes on that net income, so
subtract 25% for taxes: $ 4,800.
$ 19,200 - $ 4,800 = $ 14,400 Real net income
Divide 12 months into $ 14,400 = $ 1200 per month true income.
__________
*Show fees not included in this calculation, but you could figure out
what shows you did last year, what the cost was for the jurying,
booth, transportation, food & lodging and come up with an idea of
what percent of your 'commission' for a show would be.
If you've just cleared expenses, You've Paid 100% Commission to the
show managers!
--
Jeanette Harris
Poulsbo WA
Potter's Council member
URL Krueger on thu 28 jul 05
About the only two things I remember from Econ 101 are:
1. Overall, keeping 10% of gross sales is pretty good.
If you want 100 grand for youself you better plan on selling
a million.
2. You should always be looking at what the next best
alternative is. It might actually be better.
--
Earl K...
Bothell WA, USA
claybair on thu 28 jul 05
Oye...... Do you want fries with that???
Gayle Bair
Bainbridge Island, WA
Tucson, AZ
http://claybair.com
-----Original Message-----
From:Paul Lewing
on 7/27/05 12:53 PM, Jeanette Harris at monkeymind@COMCAST.NET wrote:
> that's $19,200 net income.
>
> But wait, you must pay taxes on that net income, so
> subtract 25% for taxes: $ 4,800.
> $ 19,200 - $ 4,800 = $ 14,400 Real net income
>
> Divide 12 months into $ 14,400 = $ 1200 per month true income.
But wait! It's not 25% in taxes. It's just over 40% in federal taxes (28%
income tax, 12.3% Social Security and Medicare tax, if you're
self-employed).
So subtract $7680. That's $11520 = $960 per month.
Paul Lewing, Seattle
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bonnie staffel on fri 29 jul 05
income tax, 12.3% Social Security and Medicare tax, if you're
self-employed).
So subtract $7680. That's $11520 = $960 per month.
Paul Lewing, Seattle
No wonder the faster I work, the behinder I get!!!
A touch of reality today.
Bonnie Staffel
http://webpages.charter.net/bstaffel/
http://vasefinder.com/bstaffelgallery1.html
Charter Member Potters Council
Gary Navarre on sat 30 jul 05
On Fri, 29 Jul 2005 08:54:43 -0400, bonnie staffel
wrote:
>(28%
>income tax, 12.3% Social Security and Medicare tax, if you're
>self-employed).
>So subtract $7680. That's $11520 = $960 per month.
>Paul Lewing, Seattle
>
>No wonder the faster I work, the behinder I get!!!
>
>A touch of reality today.
>
>Bonnie Staffel
>http://webpages.charter.net/bstaffel/
>http://vasefinder.com/bstaffelgallery1.html
>Charter Member Potters Council
Holy Wuhu Bonnie,
I'll gross more than that when I go full time at WalMart next month and I
only have to drive 7 miles to work.
G in da UP
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