Absolutely solid advice, and hugely appreciated. Just starting out on my smithing journey, complete greenhorn beginner, and your channel, videos, and these casts have become integral to my learning. Can't praise you enough my friend, I'll be following your content for years to come. Thanks again for bleeding and burning yourself and learning the hard way to bring us these essential lessons.
Thanks for the reminder. I often pass my good fortune to my customers but I make it clear that the price and product are limited to what I have on offer there and then
I've been at this long enough and am known enough that I do get donated metal all the time, but I always make sure the donator knows not to expect anything in return. Since I am mostly an artist, I will usually make something for them and give it to them, but when I sell my work I always factor in the replacement value if I made it from donated material. Great advice, Mr. Trenton.
A lot of small businesses also do not realise the actual cost of doing business. Cost of equipment, maintenance, marketing, compliance (like doing tax returns if you live where there is some form of value added tax, requiring regular reporting), your fuel costs, building rent, and much more - all have to be included in your cost calculations. It is no good thinking it took me 2 hours to make that axe, I want to pay myself $30 an hour, therefore the price is 60 bucks plus material costs, that is a very fast way of going broke! Before I retired I used to run laboratories, we paid our staff probably 40 to $50 an hour depending on their skill levels, we charged customers $160 an hour for their time, which had about $20 profit in it.
I find this with tools also. a hobbyist comes to my shop and see's purchased tongs or such and scoffs at me for not making them. they say they make their own to save money. not realizing they are not taking into account their time. again, big difference from hobbyist and a professional.
Lots of people us this as a gimic to add value to their products. Depending on your market some folks will pay more for items used with recycled materials. Price accordingly!!
And that’s not even accounting for the mark up on the material because no one gets cost on anything out of me unless I owe you a blood debt of something lol
Braiding hippy underarm hair 🤣 You made me choke on my tequila on that one. I couldn't agree more, the only way I give anyone a discount is only for friends and only if they supply the mats. I also let them know if they want any more of X it will cost more unless they once again supply the mats.
I don't even figure steel into the price unless it's damascus or a supersteel. Knife steel is so cheap, trying to figure $3 of steel I to a $300 knife, when the handle materials are $50+, is pointless. If you can't afford a $25 bar of 1084, which will make 4-8 knives, you have way bigger problems than saving a few cents trying to sell a knife you made out of a file.
I think his point is that truly successful businesses count ALL expenses into the equation, even if they are small. Over time those small amounts (assuming you are a business and not a hobby) will total up to large amounts of money. Sure a single knife will cost you say $50 total in non-steel material, you sell it for 300... well if you don't count the $3 then you are acting like $247 of profit is 250. Sell 100 knives and that's $300 lost in the equation. He discussed this in a prior talk where he said he didn't like thinking of the money and over time it made things harder for him once he had to start relying on blacksmithing for income. He started crunching numbers and realized how much money he was losing due to failing to account for those costs.
Is there a summary of this video? Seems to me like there's a bunch of BS that doesn't matter in this video. I've skipped half way through this 17 minute video and I'm getting no info. I only get Internet at work on my break. GET TO THE POINT BUDDY!
I've heard this basic concept before, but never this clear and direct! Thank you so much!
Glad you have you back. Thanks for sharing your experience. Miss seeing you and your shop. Hope that come back to even when your not blacksmithing.
Absolutely solid advice, and hugely appreciated. Just starting out on my smithing journey, complete greenhorn beginner, and your channel, videos, and these casts have become integral to my learning. Can't praise you enough my friend, I'll be following your content for years to come. Thanks again for bleeding and burning yourself and learning the hard way to bring us these essential lessons.
Thanks for the reminder. I often pass my good fortune to my customers but I make it clear that the price and product are limited to what I have on offer there and then
I've been at this long enough and am known enough that I do get donated metal all the time, but I always make sure the donator knows not to expect anything in return. Since I am mostly an artist, I will usually make something for them and give it to them, but when I sell my work I always factor in the replacement value if I made it from donated material. Great advice, Mr. Trenton.
I ran into this with some 1/2 round rod that I acquired for $3 per full length stick. I decided to charge an amount as if I paid regular price.
Thank you for the advice.
Thanks for all the advice. Getting ready to get out there and start turning my hobby into something more. Blacksmith/artist. Uncle Jon's Forge
“Because we all want to avoid the damn chicken suit” 😂💯
A lot of small businesses also do not realise the actual cost of doing business. Cost of equipment, maintenance, marketing, compliance (like doing tax returns if you live where there is some form of value added tax, requiring regular reporting), your fuel costs, building rent, and much more - all have to be included in your cost calculations. It is no good thinking it took me 2 hours to make that axe, I want to pay myself $30 an hour, therefore the price is 60 bucks plus material costs, that is a very fast way of going broke!
Before I retired I used to run laboratories, we paid our staff probably 40 to $50 an hour depending on their skill levels, we charged customers $160 an hour for their time, which had about $20 profit in it.
FWIW, "agreed value" insurance is pretty much a standard thing in the collector car world.
I find this with tools also. a hobbyist comes to my shop and see's purchased tongs or such and scoffs at me for not making them. they say they make their own to save money. not realizing they are not taking into account their time. again, big difference from hobbyist and a professional.
Lots of people us this as a gimic to add value to their products. Depending on your market some folks will pay more for items used with recycled materials. Price accordingly!!
And that’s not even accounting for the mark up on the material because no one gets cost on anything out of me unless I owe you a blood debt of something lol
Braiding hippy underarm hair 🤣
You made me choke on my tequila on that one.
I couldn't agree more, the only way I give anyone a discount is only for friends and only if they supply the mats. I also let them know if they want any more of X it will cost more unless they once again supply the mats.
I don't even figure steel into the price unless it's damascus or a supersteel. Knife steel is so cheap, trying to figure $3 of steel I to a $300 knife, when the handle materials are $50+, is pointless. If you can't afford a $25 bar of 1084, which will make 4-8 knives, you have way bigger problems than saving a few cents trying to sell a knife you made out of a file.
I think his point is that truly successful businesses count ALL expenses into the equation, even if they are small. Over time those small amounts (assuming you are a business and not a hobby) will total up to large amounts of money. Sure a single knife will cost you say $50 total in non-steel material, you sell it for 300... well if you don't count the $3 then you are acting like $247 of profit is 250. Sell 100 knives and that's $300 lost in the equation.
He discussed this in a prior talk where he said he didn't like thinking of the money and over time it made things harder for him once he had to start relying on blacksmithing for income. He started crunching numbers and realized how much money he was losing due to failing to account for those costs.
Is there a summary of this video? Seems to me like there's a bunch of BS that doesn't matter in this video. I've skipped half way through this 17 minute video and I'm getting no info.
I only get Internet at work on my break.
GET TO THE POINT BUDDY!
Man, have I missed you! I mean, damn, do you ever run out of hijacked accounts?