Why does a kilt cost what it does? (re-hash for new folks)

[RockyR]

What about the following ones you missed:

1. Customs Duties (if you're a US or Canadian maker who orders material from the UK) which generally don't get charged to the customer
2. SHIPPING charges on the material (if you're a US or Canadian maker who orders material from the UK)
3. Electric, phones, international phone bills, internet
4. Insurance - health insurance, business insurance
5. Advertising - print, online ads, business cards, local ads, yellow pages
6. Accountant (for those of us who are accounting retarded or hate doing taxes)
7. Taxes (federal, state and local)
8. Cost of creating a website - paying a programmer and buying a shopping cart program
9. HOSTING for the website, security certificate, etc
10. 'Gateway' fees and other online credit card accepting fees for taking cards through your website.
11. Exchange rate (when it's bad, do the companies raise their prices or just suck up the lower marjins)
12. Risk of getting fraudulent orders (when you ship out an order to a fraudulent addres and the cardholder challenges it, the business loses the merchandise and can not collect it). We just got hit with a $420 chargeback from a fraudulent order that went to Russia (cardholder was in Japan). That money is all lost with no hope of retreival.
13. Bounced checks
14. buying store fixtures (you have to have some way to display your goods)
15. Free shipping - does your kiltmaker offer free shipping? We offer it for orders over $200
16. Miscilaneous: Printer Ink, Computer, Printer, paper, packaging labels (stickers), boxes (free for Priority mail customers ), postage scale, sticky notes, pens, paper clips, staplers, and various office supplies
17. Coffee... Steve and I may spend more on Coffee than chain smokers do supporting their habbit. But it helps us get our kilts done quicker!

and so on... these are the fun parts of owning your own business!

[Bugbear]

Several members of my family run small businesses of one sort or another, and I have seen first hand what Rocky is talking about with the overhead eating up most and sometimes all of the profit for the owners. I don't begrudge the kiltmakers' prices, they actually seem reasonable, I do have to afford what I can afford, on the other hand. It's not always so clear cut and black and white in the grand kabuki dance of buying a kilt, but such is life.

[RockyR]

When I was a teen, I told my dad (an attorney who owned his own firm) that I didn't want to be an attorney b/c he worked 80 hours a week.

Now that I own my own business (along with Kelly) and work just as hard, he laughs at me. 'I thought you didn't want to work that hard to earn a living?'

Owning a business takes a 'certain kind' of person who loves to work and has an understanding wife / S.O. / Family.

[rodandy]

Thanks Rocky, for weighing in on this. I wondered if you would take the time to comment.

Not that I'm encouraging you to raise your prices, but given that laundry list of expenses it's a wonder you can make a living.

I know from firsthand experience that you frequently answer email at 10:00 p.m. or later, just to get done what needs to be done.

I tried on the new kilt last night and it fits great. Pictures to follow soon.

[RockyR]

As has been stated here, you have to really love it to want to 'give it a go'. I can't speak for Robert and Steve and Matt, but I'm pretty sure they feel the same way about it that I do.

I'm not trying to make this thread 'all about me', so I'll let others weigh in as well.

[bricelythgoe]

I agree with what has been said. You probably deserve more for what you do. I sure wish I could afford one of those hand made kilts....

[Alan H]

A couple of years ago when I wasn't working, I made a couple of kilts. I enjoyed it. I thought to myself..."maybe I could be a kiltmaker". Then I sat down and started crunching numbers, much like what I just wrote out, here.

Upshot was, I kept looking for IT work.

[Kilt_Em_All]

This is excellent information. Thanks! :thumbsup:

-Elliott

[wyldathart]

Not me Boyo. I've tried running my own business before. Back then I had stars in my eye's and was driving around looking at million dollar homes. PFFFFFTTT yeah right. I swear the world operates to make it hard or impossible to have your own business. You really have to love what you do. My hats off to you kilt makers. I may moan and groan about the jones but I'll never aim it at you guys. YOU GUYS ROCK !!!

[ardchoille]

I absolutely love articles like this.. it puts the whole thing into perspective. Thank you Alan H!