Masterclass Profit Engine
Most makers fail here because they start cutting metal without a target. You must define the Target Completion Date to work backward from. If you miss your launch window, you hold inventory, and inventory kills cash flow.
Do not list what you paid for the steel three years ago. List what it costs to replace it today. If steel went from $1,200 to $2,100 a sheet, use the $2,100 figure. Otherwise, you won't have enough cash to buy the next round of materials.
Include shipping TO vendor
"Svc" = Services.Don't grind profiles by hand if you want to scale. Pay a vendor for Waterjet, Heat Treat, and Surface Grinding. This frees you up to do the high-value finish work. Pro Tip: Always add the shipping cost (to and from the vendor) into this per-unit price!
If you don't charge for your labor, you have a hobby, not a business. Calculate your Shop Rate (e.g., $45/hr or $60/hr). Be honest about cycle times—include setup and cleanup!
Aim for a Gross Profit Margin that sustains your shop overhead (rent, electricity, new machines). If this number is red, you are paying the customer to take your knife.
Generated by Hoback Customs Project Planner
Build. Measure. Profit.
