Joined

·
584 Posts

**a.) Cost Estimating Software**

**b.) Used Formulas and Excel to figure out the cost of running the business on a monthly basis**

c.) Downloaded/Created a Very Simple Amount, without figuring out expenses

c.) Downloaded/Created a Very Simple Amount, without figuring out expenses

d.) Just took one from someone else's website

d.) Just took one from someone else's website

I have been sitting in front of Excel trying to figure it out, so I was wondering if you could also let me know if I'm doing this right. Thanks!

=======================================

**Here's my formulas:**

Based on a 100 Shirt order, 1 color, 1 side

I Print 50 Shirts an Hour (Don't hate, I use a flash curer for drying!)

It Takes 6 Hours to set up the job, including retensioning, adding the stencil, adding the image, cleaning, etc (everything except printing)

The Cost of the shirt is $3.00

Let's say I only work 10 hours in the month, because let's say this is my only job.

Say I want to pay myself $10.00 an hour for labor

And say my total expenses for the month are $300.00 (including everything from a percantage of my house rent, electricity, 800 fee, inks, emulsion, etc)

and I want a markup of 50%.

**This Gives Me:**

**$100.00 a month for labor**(10 Hours X $10.00/hr)

**$400.00 a month for total expenses**($100[labor] + $300[expenses])

**($400[total expenses] divided by 10 hours a month that I work)**

$40.00 an hour to cover expenses

$40.00 an hour to cover expenses

**8 hours TOTAL Time to print**(2 hours for printing plus 6 hours for setup)

**$300.00 for shirts**(100 shirts times $3.00 a shirt)

**$320.00 for cost of expenses**($40[Total cost to cover expenses for the month) multiplied by 8 Total hours to print)

**$620.00 TOTAL Costs**($300.00[shirts] plus $320.00[Expenses])

Which is

**$6.20 a shirt to cover all expenses**

and

**$9.30 Price**(with the 50% markup)

========================================

As you can see, there's a lot of things I need to do to bring the cost of my shirts down, including printing quicker, doing the setup quicker, paying myself less labor, and working more a month.

I just want to make sure I'm doing this math correctly, and if it is correct, hopefully this will help others understand how to figure out their own costs, expenses, and the amount you should charge your customers.