How do you know what you clear as a potter?

[A Studio Potter]

Here is a question for those who wonder about making a living as a potter. This is a good time of year, when a lot of us are thinking about totalling our books for 2011, to ask this simple question: do you know what your 2011 total gross sales were and do you know what your total overhead was? (When I say “total overheadâ€, I mean a total that includes everything that you had to honestly spend in order to produce your work: studio rent or mortgage and taxes, insurance, clay, glaze, kiln, utilities, show and booth fees, tent, travel, commissions, advertising, etc., etc.).

 

Once you know your total gross income and total overhead, then you can figure out what percentage your overhead was for every dollar you took in. My overhead is typically 50% of my income. I would be interested in hearing what that percentage is for other potters. From my own percentage, I can get a “ballpark†idea of what is made clear per hour, or I can use it as a general tool to compare how profitable different shows were. These figures can also force a hard look at what real money is actually cleared, after which I can take a serious look at how to increase sales or lower overhead, which becomes a topic for another discussion.

 

[Chris Campbell]

I suggest you look down through this area of the forum to seven articles about hourly earnings for a potter ... I think you will find it very helpful.

[GEP]

Thanks Chris, for mentioning my hourly earnings project again. In response to A Studio Potter's question I'd also add that anyone who wants to keep good track of their pottery business should work with an accountant, and keep records with Quickbooks or a similar accounting software. The first thing my accountant taught me years ago was how to use Quickbooks. Recordkeeping for a small business is really not very hard, but it does pay to have someone show you how to do it. At year's end you can quickly run a report that answers all of the questions in the original post.

 

My 2011 expenses were 32% of my gross income, not including a few more expenses that my accountant will calculate for me (vehicle use, health insurance premiums, etc). My studio is located in my house, so even counting the percentage of housing expenses that count as business expenses, this makes for a very low overhead business. It's something I would recommend for anyone thinking about a professional pottery studio ... if possible combine it with your home.

 

Mea

[trina]

Thanks Chris, for mentioning my hourly earnings project again. In response to A Studio Potter's question I'd also add that anyone who wants to keep good track of their pottery business should work with an accountant, and keep records with Quickbooks or a similar accounting software. The first thing my accountant taught me years ago was how to use Quickbooks. Recordkeeping for a small business is really not very hard, but it does pay to have someone show you how to do it. At year's end you can quickly run a report that answers all of the questions in the original post.

 

My 2011 expenses were 32% of my gross income, not including a few more expenses that my accountant will calculate for me (vehicle use, health insurance premiums, etc). My studio is located in my house, so even counting the percentage of housing expenses that count as business expenses, this makes for a very low overhead business. It's something I would recommend for anyone thinking about a professional pottery studio ... if possible combine it with your home.

 

Mea

 

 

 

I just did my year end and it is at the accountants now....I rent premises but think that I am close to your %. I will let you know:) Trina

[Mark C.]

Pottery full time is high overhead as noted

I never have in 38 years tried to figure out an hourly wage

First its almost never worth that much number crunching

second i love pottery and still amassed people pay me to do what i want

how do i figure my hourly in 3 tons of kingman feldspar an other lifetime materials i bought 25-35 years ago

I pay taxes on income and always to have cash around-so for me its all up

it took my wife 18 years to finally get it that as long as i'm ahead with money then i'm fine

sorry about no caps-its one handed typing for awhile

if you love working with clay and are making more $ than spending who cares-cash seems pile up at times-and thats the biggest clear problem-if you get what i'm saying

also bartering is a solid part of my potter life

Mark