need help on an appraisal

Kdivad@aol.com Kdivad@aol.com
Wed, 9 Oct 2002 18:06:46 EDT


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In a message dated 10/9/02 3:58:30 PM Central Daylight Time, Wimblees@aol.com 
writes:


> The supplies are $4000. Now, subtract from the $11,000 the cost of your 
> shop, electricity, insurance, etc., for the year it takes you to work on 
> the piano and to sell it. Also subtract the cost of miscellaneous supplies, 
> telephone, moving, and other miscellaneous expenses, and what do you get? 
> Yes, you're making money, but not as much as you think you do. 
> 
> 

Wim, I have just been speaking in round figures, of course we never make as 
much as we think.  If you break it down, the supplies, moving and most 
miscellanious expenses will be the same for my piano or a customers.  The 
only difference is the amount of time the piano is in the shop.   If you 
divide the floor space and the cost of overhead between the number of pianos 
I have in my shop it is not a very high number perhaps a few hundred dollars. 
Extra expenses such as advertising, phone and potential customer time still 
only add minimally.  To be on the high side lets say it costs me an extra 
$1000, that still means I made an extra $6k speculating.  Certainly worth it 
to me! 

David Koelzer
Vintage Pianos
DFW

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