* Working out Costings *

[Judecraw80]

Good Morning!!

Daft question but I am going to ask it anyway.
How on earth do you start trying to calculate costings for your work? To work out what to charge for products and profit margin?

How many temp crowns from your composite?
How many Study models from a bag of plaster?
How much does margin cost? How many crowns per bag of metal and porcelain?
You labour cost?

Any help would be most grateful received, good, bad or indifferent!!

Thank you in advance!! Jude [emoji6]



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[TheLabGuy]

Start keeping track, a log some would say. We use to put post-it notes and mark down every time we used a product. Factor in your labor, overhead of bldg., material cost and it goes pretty quick before you start to see some numbers and your specific product margin. You may be VERY surprised how much you make on some things and might even find it cost you to make a specific product when all done. Once your completed doing your cost analysis, I'd sit down with your current fee schedule and make the appropriate changes. At the end of the day, we run a business and the doors have to stay open!!!

 

[Judecraw80]

Start keeping track, a log some would say. We use to put post-it notes and mark down every time we used a product. Factor in your labor, overhead of bldg., material cost and it goes pretty quick before you start to see some numbers and your specific product margin. You may be VERY surprised how much you make on some things and might even find it cost you to make a specific product when all done. Once your completed doing your cost analysis, I'd sit down with your current fee schedule and make the appropriate changes. At the end of the day, we run a business and the doors have to stay open!!!

Thank you for taking time for me [emoji4]

I have started to do this as best I can!! It's hard as there is 5 of us in the lab I work in at the minute and this is for me to do some projections to go it alone. I trying though. Hospital lab as well. What do you think about taking average charges from other labs as well? I am sure once I start in production I can track things more closely specific to me.

Approaching potential clients?? Any ideas??

Thank you [emoji39]


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[TheLabGuy]

Thank you for taking time for me [emoji4]

I have started to do this as best I can!! It's hard as there is 5 of us in the lab I work in at the minute and this is for me to do some projections to go it alone. I trying though. Hospital lab as well. What do you think about taking average charges from other labs as well? I am sure once I start in production I can track things more closely specific to me.

Approaching potential clients?? Any ideas??

Thank you [emoji39]


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You need to get a baseline cost analysis before you start looking at labor cost analysis of specific employees. Right now, I'd pull a staff meeting together and tell your staff for the next two weeks (usually that's enough time on most stuff) we are going to do a cost analysis on materials. Have them write down times on the back of the scripts for every product made, material used, and the time involved. You add this up daily and keep a log for two weeks. Compare to sales each day and do the numbers per say. Yeah bud, it's a real pain in the keester...but it's crucial to know what you make on what. You have to do it!!! Most people just starting out (1 man labs) usually do this, much easier to control, but even with five techs you can do this!!!

 

[Judecraw80]

You need to get a baseline cost analysis before you start looking at labor cost analysis of specific employees. Right now, I'd pull a staff meeting together and tell your staff for the next two weeks (usually that's enough time on most stuff) we are going to do a cost analysis on materials. Have them write down times on the back of the scripts for every product made, material used, and the time involved. You add this up daily and keep a log for two weeks. Compare to sales each day and do the numbers per say. Yeah bud, it's a real pain in the keester...but it's crucial to know what you make on what. You have to do it!!! Most people just starting out (1 man labs) usually do this, much easier to control, but even with five techs you can do this!!!

I would only I am a junior as such (with plenty of experience)!!! No chance of promotion and feel I am being kept back so I am dipping my toe in the big pond!! My boss is unwilling to help so I gotta work it out myself...... So any help is very gratefully received along the way.

Thank you TheLabGuy very much, means a lot.

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[JMN]

Lets see,
Full arch model weight, per arch: About 150g if 'loose', about 300g if in a poured slot-base

Tripple tray U & L on Artimax, per set: About 150g (good bet it's an even split on sides by average)

Small arch U & L on Artimax, per set: About 250g

Plaster to mount two full arches: about 250-350g

UPS

Start a notebook and do just what TheLabGuy suggests. If the boss wonders what you're doing, be honest. Tell him you're looking at being more efficient, keeping costs down, and watching your work to find your averages as you want a rise in pay. All true.

 

[JMN]

I would only I am a junior as such (with plenty of experience)!!! No chance of promotion and feel I am being kept back so I am dipping my toe in the big pond!! My boss is unwilling to help so I gotta work it out myself...... So any help is very gratefully received along the way.

Thank you TheLabGuy very much, means a lot.

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A word of caution. Sometimes we feel we're being held back in malice when we are being held back in protection or uncertainty. I have NO idea if that is anything close to likely for you. But it was for me for a time. I wanted to ride the big 2 wheeler out of the yard and over the hills, but kept being put on the little three wheeler to make circles on the car park. And it was proper for me at that time. I could have done more, but with less throughput and more failures than I did when I was finally given the 2 wheeler.

Before going too far, make a business plan. Talk with others in the UK (a fair few are on here) about the realities of opening there.
Converse with a solicitor on your desires and what options can provide the best opportunities, get advice on which accountancy firm is reliable.

Plans are for what you can reach.
If you dream, dream big. If you can reach it easily, it isn't a dream.

[edit: oh and Greetings Earthling! Welcome!]

Just had to add this:

 

[Judecraw80]

A word of caution. Sometimes we feel we're being held back in malice when we are being held back in protection or uncertainty. I have NO idea if that is anything close to likely for you. But it was for me for a time. I wanted to ride the big 2 wheeler out of the yard and over the hills, but kept being put on the little three wheeler to make circles on the car park. And it was proper for me at that time. I could have done more, but with less throughput and more failures than I did when I was finally given the 2 wheeler.

Before going too far, make a business plan. Talk with others in the UK (a fair few are on here) about the realities of opening there.
Converse with a solicitor on your desires and what options can provide the best opportunities, get advice on which accountancy firm is reliable.

Plans are for what you can reach.
If you dream, dream big. If you can reach it easily, it isn't a dream.

[edit: oh and Greetings Earthling! Welcome!]

Thanks JMN I had been told that I was going to go further, completed a post graduate diploma for this but I had a child and now have to work part time and that is now not suitable situation for an upgrade I am told unfortunately. I also have moved quite far away from my place of work so I have to see about making things work on my own in order to be at home but keep working part time until I get (hopefully) established incase things don't work out. I am working with an enterprise agency to guide me along the way and have an accountant in mind. I just really, really want to get my figures bang on so I know what I am letting myself in to. I also need customers lol, I will get there I just want to get it right!!! Thanks [emoji111][emoji106]

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[TheLabGuy]

Thanks JMN I had been told that I was going to go further, completed a post graduate diploma for this but I had a child and now have to work part time and that is now not suitable situation for an upgrade I am told unfortunately. I also have moved quite far away from my place of work so I have to see about making things work on my own in order to be at home but keep working part time until I get (hopefully) established incase things don't work out. I am working with an enterprise agency to guide me along the way and have an accountant in mind. I just really, really want to get my figures bang on so I know what I am letting myself in to. I also need customers lol, I will get there I just want to get it right!!! Thanks [emoji111][emoji106]

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Sounds like you are just starting out...Please read the many threads, as many here on this forum that are members, we were all in the same position you are at right now. We have documented our path along the way. Also, don't hesitate to use one of us or all of us a mentor as well. Believe it or not, I do usually answer my phone/messages. I know many members here have helped me big time throughout the years, especially just starting out. It can seem a little overwhelming at first, and maybe it is. But as JMN said....Dream Big and go for it.

 

[rkm rdt]

 

[CoolHandLuke]

your first is always memorable.

 

[rkm rdt]

your first is always memorable.

...like it was yesterday?

 

[CoolHandLuke]

indeed. i remember everything like it was yesterday, even this morning, and the day i was born.

 

[AnAppleaDay]

The importance of grammar. A missing hyphen can make a huge difference!
There's a pun in there somewhere...

 

[CoolHandLuke]

you might say in this case the absence of a hyphen is quite...

handy.

 

[rkm rdt]

The gloves are off

 

[CoolHandLuke]

gross. use protection man. you want to catch the clap ?

 

[rkm rdt]

yes

 

[JMN]

The Import Ants of Proofreading.

I sent that line to my city newspaper near daily before not bothering to read it anymore when they couldn't keep straight whether a alleged theif's last name was Cook or Crook.

 

[JMN]

Well, @Judecraw80 , after six years you finally got a full initiation. Total and complete derailment of your thread.

Congratulations on achieving this distinction. Wear it with pride.