Tag Archives: estimate

The Most August Links

I am in North Carolina for a few more days, but return to New York City next week, so I will have more time (and a real computer) to spend on writing. Until then, here are some useful sites to satisfy your prop-reading needs:

PDN’s Photo of the Day has some wonderful photographs of Pamplona’s San Fermin festival, where giant puppets run around beating children.

Speaking of puppets, Project Puppet has a great tutorial on adding facial features to your puppet characters. It covers everything from cutting the shapes out of soft foam, to patterning and covering them with fleece.

Rich Dionne continues his series on budget estimates in theatre with one of the hardest variables to estimate: the cost of labor to complete a project.

Some brief, but interesting, prop facts about the upcoming Fright Night remake. I also found another article which has some additional fun facts.

Labor is a cost, not a profit

What does it mean to do a project “at cost”? Simply put, when a client orders a project, you deliver it and charge only enough to compensate what you spent. It differs from a project where you add a markup to the costs or add a profit margin. So the price is the cost plus the markup plus the profit. Sometimes you might not mark up the costs, and other times you do not add in a profit, but in either case, you are charging more than what you spent.

The confusion comes from the “costs”. There’s the cash you spend – materials, shipping, gas money to drive to the store, overhead and maintenance of your shop – and then there is your labor cost. Some may argue that you should not charge for your labor when you are doing a project “at cost”. This is not only erroneous, but it is damaging to our industry, as I shall explain in a bit.

I’ve even heard the suggestion that the cost of your labor should be considered “profit.” This is absolutely absurd! If you get overwhelmed with other jobs and have to hire someone to do the project, you do not get to keep that money; it becomes a labor cost. When a company sends out it’s weekly payroll checks, it does not get that cash back, nor can it count it as profit. Why then should you count your own labor as profit?

The cost of labor is already factored into all the materials and tools you use. The cost of a gallon of silicone rubber includes the cost of the scientists who invented it, the people who manufactured it, the people who packaged it, the drivers who transported it, and the salespeople who sold it. You can’t count any of their labor as a profit; it’s all part of the cost. Why would your labor not also be a cost?

If you make something “at cost” you include the price of your labor. If you don’t know how much that is, you should charge the same amount for your labor as it would take to hire someone else to do that work. You can charge an hourly, daily, or weekly rate, or just set a flat fee for the project as a whole. If you are trying to control the costs of the project, you certainly have some leeway in how much you charge for your labor, but you should never charge too little for it; if your price is still too high for a client and you are trying to do them a favor, you can always add a “discount” to your final price, so you maintain the integrity of your own labor costs.

Prop masters and artisans with experience know that labor is often the most expensive part of a prop. A foam sculpture may only use about $15 in materials, but it can take fifty hours to complete. Even at a very modest $15 an hour, that is still $750 in labor.

Imagine than, a market where some prop makers are saying $15 is “at cost” while others are saying $765 is “at cost”. That kind of disparity drives down the price of props and devalues the labor which goes into it. It is very skilled labor as well, the kind that is frequently at a shortage, even in a large market like New York City. It takes a lot of training, skill and practice to be able to make props. Clients who want the “costs” of a project kept to a minimum will point to the $15 examples, thinking that the $765 estimate is somehow inflating the price or using more expensive materials. Even if you are just an amateur prop maker, your pricing can have ripple effects throughout the industry.

If you want to charge someone just for the materials you use and throw your labor in for free (because it is for a friend, or because you really love the work and would never get paid for it otherwise), that is certainly your right. Everyone does it at some point. But make sure you are saying you are only charging “for materials”, not that you are doing the project “at cost”. It’s a world of difference.

I did not Desert you

I am currently in the desert of Arizona. It’s time for another S*P*A*M conference, and this year, our hosts are Childsplay Theatre. I will report on all things of interest sometime later next week. For now, enjoy these sites of interest from the comfort of your own home.

Rich Dionne tackles the many methods for making a budget estimate in theatre. I discovered I use a mix of these methods when I deal with the fuzzy world of estimating the costs of props for a show.

In an earlier issue of their magazine, Make published a primer on working with carbon fiber (aka graphite fiber). They have now posted the entire article for free on their website.

This is interesting: why are there no guns in MoMA? It’s a podcast looking at the role of design in guns. What I found fascinating is how the manufacturing of guns is what really began the standardization of parts and machines in the industrial age. Despite their role and importance in modern life, museums of design like MoMA do not display any guns.

The Monster Mummies of Japan is a strange diversion into the history of imaginary taxidermy in Japanese temples.

Finally, who can resist color photographs of Manhattan in the 1940s?

 

How much should you charge for your work?

If you are a prop artisan, and you find yourself freelancing (or wishing to freelance), you may wonder how to make money, or more appropriately, how much to charge for your work. In my experience, it has been most helpful to calculate the costs of the project as accurately as possible beforehand, including a set rate you charge for your own labor. My favorite tool for this is the computer spreadsheet, whether it’s through Microsoft Office, OpenOffice, or Google Docs (or whatever Macs use).

Materials

The first, and easiest, cost to estimate is the materials you will use. I include every single bit and piece, even if I already have the materials in stock; if I use what I already have, I will still want to replenish my supply. I literally check the website of where I want to order my material, or visit the store, and use those prices to make my calculation. Make sure you include every single piece of material, no matter how minor you think it is. I was recently estimating a chandelier for a Broadway show. I knew I would need electrical cords to run from the light bulbs to the plug, but I figured it would only be a couple of bucks. Luckily, I decided to play it safe and actually estimate it for real. It turned out I would need nearly 700 feet of cord, which came out to $350. That’s not the kind of cost you want to miss in your estimate. Count up all the screws, nuts, bolts and washers. Don’t forget about taxes and delivery charges. The idea here is that you want to present your client with a realistic estimate of what the project will cost. If the project actually comes under budget, that’s great; people love hearing that they will pay less than they thought. If you don’t want to tell them you saved money, that’s great too, because you can pocket the difference. What you want to avoid is a project that costs more than what you are getting paid for. You don’t want to beg the client for another $350 because you forgot to figure in the electrical cord; that is desperate, and the client is in no way obligated to pay you it, because it was part of the original bid and it’s just your own dumb mistake in overlooking it. You can pretty much count on having to eat any costs you neglect to include in your original bid.

If the client changes something about the project, that’s a different story. Feel free to charge extra for changes.

After you add everything up, you want to make sure and add a contingency. Though you may be absolutely sure you have considered every possible material expense, there is sure to be something extra that you need, or the price of something may inexplicably rise between the time you check it out and the time you actually purchase it. For whatever reason, I like to take the total cost of the materials and add 20% to it. This is usually enough to cover the unforeseen costs.

In the commercial world, especially when it is a business rather than a single person making a prop, it is common to also charge a mark-up on materials. If the prop you are building includes a light bulb, you don’t just charge for the cost of the light bulb, you charge them for the light bulb plus a bit of profit. In other words, it is like you are a store that is making money by reselling the light bulb. This is not to be confused with the contingency cost, which should always be factored in. Adding a markup to your materials is entirely up to you; as for myself, if I am doing a job for a non-profit theatre, or a friend, or any sort of client that I already have a relationship with, I do not add a markup. I’m telling you about it just so you are aware that such a thing exists and is utilized by prop-making companies.

Labor

The second half of your equation is figuring out how much time you need to work on the project. This can be very difficult to estimate, as most of us are very bad at predicting how long a task will take. Again, your biggest ally is breaking down the tasks as much as possible to their most basic components and estimating the time those will take.  While estimating the time it takes to “build a fake dead goat” can lead to wildly inaccurate guesses, predicting how long it will take to “tighten four bolts” is far simpler.

Just like materials, you want to add a contingency to your labor. It is much more likely you will be off in your predictions with labor than materials, as the cost of materials can be researched online or by calling stores. I always err on the side of pessimism when it comes to how long a task will take.  Though I am not necessarily thinking about absolute worst-case scenarios (if all the power goes out and my tools break, and my car breaks down on the way to the store, and a volcano starts erupting while my wife goes into labor), you do want to consider that not everything goes according to plan. Think back to the last project you undertook, and remember how it took you twenty minutes just to get your workbench cleaned off before you can begin.

Turnaround Time

When you finally figure out how many labor hours it will take you to finish your project, that doesn’t mean you know how long it will take. If you calculate it will take 23 hours to work on the job, that does not mean it will be done tomorrow. First, you have to figure that you do not have every single hour of the day to dedicate to the task. Maybe you have a full-time job, or family obligations. Even if you are single and otherwise unemployed, you still need to leave time for meal breaks and sleep. Further, you need to calculate the time it will take for paint and glue to dry, or other chemicals to cure. If you need to order parts or materials, you need to factor in the time it will take to ship them.

When a project becomes particularly complex, or if you still don’t know how to calculate the time it will take to complete a prop, you may wish to learn about Gantt Charts.

An example Gantt Chart
An example Gantt Chart

I’ve never used them for single-person projects, but you may find them handy. Essentially, you break a project into every possible task. If you are building a table, you want to list buying the wood, drawing the table, developing the cut list, measuring the pieces out, cutting all the pieces, gluing the top together, gluing the apron together, attaching the apron to the top, attaching the legs to the table, sanding the table, staining the wood, and sealing the table. Obviously this is a highly-simplified example, but the point is that you need to break apart your project into various tasks and subtasks until it cannot be broken apart any more.

With a Gantt chart, you then put the tasks into order. Some tasks need to wait for other tasks to be completed before they are begun. Others can be started in the middle of other tasks. The Gantt chart sets up the overall timeline of the project, showing which tasks are dependent on others as well as which tasks can be completed independently.

Single-person projects tend to be much more linear, and simpler projects rarely need such analytical breakdown, but the important lesson to take from this is that you want to do as much planning and thought beforehand to ensure you are not promising a complete prop without adequate time to pull it off.

Charging for your labor

I did not mean to get ahead of myself talking about the time it takes to complete a project, but I want to make sure I touch on how much to charge for your labor. Generally, you charge for the time you actually work on a project, as opposed to the time you are waiting for materials to be shipped or for paint to dry. First, let me say something very important:

Your labor as a skilled artisan is very valuable and you should never ever ever ever feel guilty charging for it.

In my experience, labor is well over half the cost of any project. In many cases, it can be the largest cost on a project. This makes sense. If you could get a custom prop that perfectly fulfills all the needs of a client from Wal Mart, than they would have gone to Wal Mart. If, however, they want someone’s face carved into a chair that fits within a specific area of a stage, and is strong enough to support a tap dancer, you should charge them accordingly.

At this point, it seems simple. You’ve already figured out how much time you need to work on the project. You just need to take your hourly rate, multiply it by however many hours you need to work, and that’s the cost of the labor.

But what do you charge for your labor? That’s the rub.

Unfortunately, I can’t even give you an answer. It varies widely with where you are, how skilled you are, what the project is, and even who you are. Obviously you can charge more to a Broadway show in New York City than you can to a children’s theatre in North Carolina. It is incumbent upon yourself to research your circumstances as much as possible. Ask other artisans how much they charge. Find companies in your area that offer similar services and find out how much they pay their artisans. As a freelancer, I’ve worked at a number of theatres, operas, and display companies across the company, so that gives me a baseline idea of what I can make as an artisan.

Mike Lawler conducted a survey of technical theatre earnings in 2006. It’s very informal and fairly incomplete, but it’s the most inclusive survey we have in this area. If we are to assume full-time employment for props people (40 hours a week for 50 weeks a year), the median hourly rate is $10-17.50.  Obviously, a freelancer can never hope to work full-time, so these numbers serve more as a “you should never charge less than this, ever.” Unfortunately, the best way to determine how much to charge for your work is to see how much work you get each year for several years, figure out how much your living expenses are each year, then charge enough to keep up with your expenses. Obviously, you cannot set your rates based on hindsight; you pretty much have to wing it. Again, I’d like to reiterate that your best bet is to find out how much similar artisans in your area are charging. Your second option is to throw a price out and see if it sticks; if not, you can always lower it if you can afford it.

At this point, I want to mention that you do not need the same rate for every project. I have one rate I charge for “friends”, one for non-profit theatres whose work I find exciting or who have projects I really want to do, and one for commercial people. It’s not for purely selfish reasons; there are actual differences between working for someone you already have a relationship with versus working for someone new where there is a learning curve in the communications.

How much is too much? I’ve seen people who can charge up to $45 an hour for non-union theater work. You have to imagine that film and corporate work can command even higher prices. In my experience, whenever you feel you are charging too much, there is someone out there charging even more.

Putting it Together

At this point, you have your materials cost and your labor cost, as well as contingencies for each one. In addition, you have the turnaround time for how long it will take you to complete your project. If you added a markup to your materials, be sure to include that as well.

If you wish to operate as a business, rather than just as a person making props, you should think about adding a profit margin. In other words, take the total cost of your materials (with markup) and labor (both with contingencies), and multiply it by some profit margin. You may wish to get one and a half times what it costs to complete the project, though it is not unheard of to charge four times what it will actually cost.

Now that you’ve come this far, do not forget to include the cost of moving the prop from your shop to the theatre (or wherever it is going). It would really suck to come up with a sudden $85 charge for UPS to deliver your prop.

As an example, I was recently bidding out a project. I added up the price of all the materials. I used the best materials in order to minimize my own labor time, so it was fairly pricey. I included a contingency for all my materials. I calculated how long it would take me to complete all the tasks. I made sure I was being very pessimistic. I factored in my contingency. I added a markup to all my materials. I decided I would add a profit margin to the whole project. They asked how much more it would cost to get it completed by an earlier time. I called the various vendors to see if I could rush ship the materials and how much more that would cost. I recalculated my labor to include “overtime” and “over night” labor in order to get the project done. In short, it ended up sounding like an extremely expensive endeavor on their part.

At the end of the day, they went with a professional scene shop. Not  because they were cheaper; in fact, I was cheaper. But my price was close enough to theirs, and they were already building the rest of the scenery, so the producers decided to pay a higher price with the assumption there would be greater consistency in the final product.

In other words, even when I felt I was being my most expensive, the client still went with a shop that was even more expensive.

Keep that in mind when you think you’re skilled labor isn’t worth that much.