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Editorials
 
 

   
Get Serious about Profit
Know your real costs

 
 
 
Download excel Job Timing Data Sheet
 

Once files are downloaded save them to your computer.
You will need Excel for the Job Timing Data Sheet and CorelDraw 9 or above for the Job Timing Form.

How long does it take to make 1 glass Trophy. How does it take to make 20 glass trophies? How long does it take to assemble 10 marble trophies, how long to assemble 10 resin trophies? How long does it take to engrave trophy plates, how many Cats in New York City?

If you don’t physically time jobs you’ll never know the real answers to these questions. Job timing is crucial to ensure correct pricing so get get across the board healthy profits. It not hard to do and doesn’t take up much time at all. You need to have 3 things to put a system in place. 1. A job timing sheet similar to my sample here. I just wacked it up in CorelDraw and staple it to the top of every job I want to time. I use yellow copy paper so it stands out and my staff know that if it’s a yellow form its got to be timed according to the job timing procedure. 2. A system in place so everyone knows exactly how to time a job. This simply means making sure that a job is timed from the moment you pick up the order and start reading it to the moment it is put on the finished shelf for pick up. 3. An excel spread sheet that you record the data on. I have posted my excel job costing sheet on our website in Advocate\editorials. You can download this for free and use it as a guide. It may not suit you or you may have a better way of setting up the spread sheet but this will get you started. I also left some historical data on there so you can see how long things take to produce and perhaps use this as a guide. The spread sheet has formulas etc on it so when you add time info it calculates costing. You may want to change the formulas to produce your own rate per hour etc. At least this will get you started. I hope you find it worthwhile. I find it invaluable for accurate monitoring and adjustment of sell prices.

What’s important here is that you start re3cording the time taken to do jobs. After 6 months you’ll have a good source of reference for future costing. After 12 months you’ll have a great data base to draw from and you’ll have all you regular customers timings recorded so you can charge the correct amount next year. When you have costed a regular job and find that you aren’t charging enough put a note in their file so that next time they come in you are ready with a new, more profitable price.

I suggest that you enter the data once a week at least and discipline yourself to do it every week. Once the data begins to build up you’ll get excited about it and you’ll get addicted to recording job times to increase your profits.
You’ll find that some data will vary. One week 10 glass tankards will take 5.8 minutes each and the next week the same job wi;; take 9 minutes each. This is were you can analyze the discrepancy. Ask your staff about it without harassing them and refine systems so that all jobs become more consistent.