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Out of context: Reply #6

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  • Corvo20

    Of course, if you have recently bought some software/hardware for your work you should add a few extra bucks on every gig, estimating how many gigs you'll have in that specific software/hardware maximum amortization period (there are IRS tables for this). To get that extra number you divide the value of that product by the numbers of clients you expect in that given period.

    For example, you recently bought a spiffy, new A3 printer. It costed you (say) 400. Printers can have (say) 2 years of amortization period max in IRS - usually relates to product life-span. In 2 years you estimate you'll pull a given number of gigs (say 50). You then divide 400/50 and add 8 in every gig within that period.

    You can do this with pencils, ink-cartridges, etc. Your hourly rate should reflect your investment or otherwise charge a flat rate and have a "production" fee that encompasses all this on the side.

    Corvo2 0Permalink
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    • You can do ratios even, charging more in the first year, thinking about what assets degrade most rapidly.Corvo2
    • But if you go this way get an accountant. For a small fee you can have a balanced amortization plan.Corvo2
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