Business Question - Concerning Hours Of Work

I have been pondering this thread for a little while.

Are we talking about a core business, i.e. a main source of income to keep body and soul together, or a sideline?

If a hobby/sideline, maybe one could ponder the "opportunity cost" of the activity, meaning "How much could I be earning if I wasn't doing this?."  One could be "constructively" watching television, for instance, in which case time spent may not be a large factor in working out a reasonable return.

If a main source of income, then one would need to be competitive compared to other model makers in the area.

Okay, a question for the economists out there, but just a thought.

I have nothing constructive to add to this discussion, but I can't resist passing on a sad tale I heard from a friend who volunteered his time in the "modeler's booth" at his local maritime museum.  He said he got thoroughly sick of hearing two questions from visitors:  "How long?" and "How much?"  He said he'd started to wonder whether he was a ship modeler or a prostitute.

these guys are right think about it (idle time) if youdrop off your car with the mechanic and he says the part will be in in 3 days (that is idle time) he don't charge you right

oh btw Gino i wonder  on the models you built for other people are showing them off and saying OH look what I did  

When doing custom 1:1 auto's we couldn't charge for the drying time. So what we did was forget about enamels and sprayed lacquers so we could keep on working. All man hours related to getting the job done was calculated in along with all supplies and materials used. Plus running for parts and supplies, UPS shipping cost and Fridays lunch of beer and pizza. 

Thanks for the replys they have really helped me out alot.

Just on the subject of modeling hours, more just to see how long my projects take. What is considered in the time to build a model ? Drying time for paint and getting supplies, or just the actual building of the model.

The standard rate for competition quality models (that's models that stand a more than fair chance of winning at a judged Regional or National level contest) is 10 times the retail cost of the major materials (this does not include paint or glue). Upgrade costs such as basestyle and displaycase are usually priced at cost plus a very small amount to cover ordering and picking up custom made parts), fancy paint schemes, amount of fine detail, etc.

Most semi-professional and professional builders do have some standard prices such as a base of $2000 for a 1/350 aircraft carrier, regardless of whether it's plastic or resin. Upgrades to that would be the size of the airwing, open a detailed hangar bay, internal lighting, canouflage applied if any, etc.

Mage, I've done my share of free lance type work on the side in a few job markets.

A few things to concider first -
Is it a job which will be supporting you or a hobby making a few extra bucks on the side?
Is there anyone else in your area offering the same type of service or goods?
How much of a market is there in your area for what you are offering?
What takes you 3 hours, can someone else do in 2 hours?

If there is a market and you don't have much competiton and it's just a hobby, then concider making a "few" extra bucks a good starting point. Everyone likes to charge $20.00 (or more) an hour for their time but sometimes that just can't happen. You can always test the market with a higher price, if no takers, lower the price. But set a minimum price for yourself above and beyond your cost. Maybe add $5.00 an hour to the cost of supplies and materials used as your minimum.

If you had other people offering such a service or items in your area, you could get an idea what the market is used to and maybe start your price just slightly lower to get your customer base started. Then as business picks up and people like the quality of your work, slowly start raising your prices.

 

I agree with Neptune68.

I build models on commission all the time.  If you try to charge by the hour, you will quickly be charging way too high and price yourself out of business. 

The rule of thumb I use is twice the price of the model for an out of the box build.  I add on another 1/4 the price for any resin upgrades (plus the price of the resin set if I buy one) or scratch building for simple details and gear.  I charge $10 per plastic figure and another $25 for a simple wooden base.  I will do an average model on a base for about $100.  Much more, and people won't pay for it.  If I am doing an elaborate, special project, I will work out a price that works for me and the buyer.  By the hour though is always too high. 

I have seen people want $800 to $1000 for a 1/48 airplane because they are looking at an hourly rate.  Crazy if you ask me.  It is only plastic with some glue and paint on it.  It isn't gold plated.  I don't model for a living, it is a hobby.  It is nice to get a little extra money on the side to support my hobby on as well.

 

Good luck.

Mage,

I wouldn't count time the work is set aside for materials to dry or cure.  However,  you might want to track what manufacturers call "cycle time" (duration from start to finish by date, regardless of the actual hours worked) so you can estimate completion dates.  The hours you put in working on the model are a separate issue.

A manufacturing company would factor in drying/curing time as the cost of floor space to store the product, environmental equipment or controls (for temp, humidity, contaminants, etc.) and the amount of time the work stays in storage.  For an individual model builder, factoring in the cost of your hobby area floor space would be impractical.

You probably couldn't get a decent rate per hour without pricing your models out of affordability, assuming you're not a professional museum-quality or movie model builder.  I usually calculate the price as twice the cost of the materials, have fun building the piece, and consider anything I can get selling it as a subsidy rather than a profit.  And I keep my day job.

Regards...