Costing of a production boat? Help?

Originally Posted by TollyWally

Sadly building's the easy part. Sales are the engines from which all else flows.

You nailed it!

Building is just the basement of the business (and outsourcing the mortar).

Marketing is ALL the rest.

I cannot, and will not comment on the figures given above, too many factors are part of a proper calculation (and I am not familiar with US wages and associated employer outlay). Though the figure of 5KG per manhour given by TAD is in the ballpark (of course).

Jim
Imagine you would be able to produce a S-class Mercedes at 20.000, where Daimler Benz needs 60.000. Who would buy your car? Nobody!
Who believes it is the same quality?
Where is your distributors net?
Where is your service?
Who feels sure you do´nt get bancrupt before guarantee is over?

No, it is not easy, and you need a deeep wallet for such a startup.

Sorry to rain on your parade, but good ideas are just the spice in the soup, the right ingredients have to be there first!

Regards
Richard

[Steve Clark]

EPS2 BOM-1.xls
Attached is a worksheet like I used to use. In this case for a small doublehanded skiff.

The hard part is actually knowing your labor hours and overheads.If this doesn't scare you off the first time through, then you don't know your numbers.
SHC

[jim lee]

Originally Posted by apex1

Sorry to rain on your parade, but good ideas are just the spice in the soup, the right ingredients have to be there first!

Rain all you want, its only the internet.

Sorry steve I can't make heads or tails from your BOM. I think something was lost in translation when I imported it into my system.

We've gone back and forth. Some people are saying this and some say that. (Mostly other boat builders around here that I've been talking to) We have all this info in the computer. So we can play "what-ifs" with the materials and labor hours. I find that, depending on how we tweak the numbers, we can be all the way from gravy train to not in business.

Things like

Break even = 2 x parts cost
Break even = 2 x parts + $50 x hours
Break even = 1.5 x parts + $20 x hours..
Break even = 1.5 x parts + $20 x hours + $500 x weeks in shop

On and on...

So anyhow, thats how it sits. I'm going to get my hat and pull a number out of it.



Thanks everyone!

-jim lee

[Tad]

Jim,

This is why averages are hopeless when trying to apply them to your particular undertaking. As Steve mentions above, the trick is to know your costs and time. Two organized and highly motivated guys can accomplish twice that of four guys working for an absentee owner and just putting in time.

Good luck......