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I saved $500 on hookers last year by playing stink finger with myself. Wait. Whut?
And this is why we get in trouble...
I saved $500 on hookers last year by playing stink finger with myself. Wait. Whut?
And this is why we get in trouble...
If you are a sole proprietorship it doesn't matter. Business income is personal income. In this brewery's case it is only me running things. I have zero employees, hence no labor costs.
I just spent $75 of my time reading this thread. Unfortunately, nobody would pay me not to read it.
Raw wage or including benefits?
I know it's all for fun in the thread but if you're actually looking to do this as a nano/small business you always want to count labor cost in the CODB, even if you only pay yourself as a laborer. It's a safety net in case you have to hire someone to replace your labor if you're injured. Otherwise, not accounting for that expense could very well eat all profit and that's the game.
While I am the extreme, I have never actually met anyone that has saved money homebrewing. Wine- yes, beer - no.
I sat down with my wife last night and went over our yearly finances...
You can count labor all you want but that isn't how it works within a sole proprietorship. You can't take perceived labor costs from expenses. Sometimes you can pay yourself a hefty sum, sometimes you can't. There isn't a distinction between the individual and business. Personal labor doesn't affect the accounting.
In the case of injury hopefully an owner has insurance coverage or savings.
From a hobby standpoint I hate seeing people try to factor their time, and sometimes equipment into the overall cost. So when I went golfing last weekend how much money did I spend? I thought I spent $81. $54 for the greens fees, $20 for the cart, and $7 for the IPA. By some of your rationales I spent hundreds more than that for the round. After all I have to factor in the cost of my clubs, shoes, shirt, sleeve of balls, lessons I took back in the 90's, and labor. I like to pay myself about $20 bucks and hour to golf. After a little quick math it looks like I spend and average of $323 per round. I should find a different sport.
Hah my math is terrible! you know I was thinking of over 1000 saved before I threw in the ingredients figure this morning! I could say I spent 1000 less at the booze store thought.
I count clubs and balls! That's why I play with a $95 set of Tommy Armour 845s and old Frankenclubs my dad made and discarded, and Top Flites! Otherwise, if you buy a new set of irons every two years and a new current-year driver and play with ProVs and don't count that expense...you are rich.
........... S-Corp you do have to pay yourself a salary.
Jumping into the fray ...
The OP did said he spent 3K on his brewing set up, but it was from an inheritance. So I wouldn't count that as a cost. He probably would not have spent that on a set up without the inheritance, but most likely would have started out small and built up. (This is strictly conjecture on my part based on his first post.)
I have been brewing for almost 6 years, and the majority of my brewing and equipment money comes from birthday and Christmas gifts. My family and friends know I like to brew, so cash is and easy gift for most. I use it to buy most of my ingredients and equipment upgrades. Last year I finally got into kegging. I spent just over $1000 on a keezer set up, but only $400 of that was "my" money. The rest I had saved from gift dollars. So I would put my cost at the $400, not $1000. And since most of my ingredients also come from gift money, I consider each beer to be like a birthday or Christmas present!
Overall, I tend to buy more craft beer than before I brewed. So while I can't really say it saves me money, I certainly feel that I have made my brewing hobby relatively inexpensive compared to most other HBers, and certainly less costly than my wood working hobby.
Cheers!
Just curious, what type of keezer does 1k buy you. Pictures please.
$200 for new freezer, $240 for four Perlicks taps and shanks, $120 for four regulator from Tap right, $160 for four kegs. $70 for CO2 tanks with gas.. Not quite $1000 but closeJust curious, what type of keezer does 1k buy you. Pictures please.
At $11 per six pack your $25 would buy you 1.28 gallons of craft beer. I was curious.
Not as sure about other locales, but if you're in northern California, Sierra Nevada often goes for $7/sixer, $13/12-pack, and sub-$1/can in 24 packs. Between NorCal, Western Arizona, and Houston (my three stopovers on the annual summer break trip to the US), $9/sixer is a common price point for basic craft beers, though there's plenty of stuff on the shelves that dwarfs that number.
Since I didn't drink all that much beer (most of the year - lack of good, readily available, affordable options) before I started brewing, and because at least half of what I brew is given away, I definitely spend more on beer as a brewer than I did before. Even factoring in my ugly junk equipment, I've probably made a couple beers for every dollar I've spent on brewing, but comparing how much I spend on brewing against how much beer costs elsewhere is apples and oranges. I don't brew to save money, I brew to make beer, and also in the idle hope that maybe one day I'll be able to make a bit of money doing it.
I'm usually on HBT while at work. I get paid to post stoopid stuff.The way I look at it is that it's not much different than posting on this site.
Some people have over 3000 posts... at an average of 8 minutes to read and reply to a post thats over 400 hours. Thats not counting the hours of just reading time without posting. Would we spend this much time if we felt it was costing us money ? No we do this because it's a hobby that is rewarding. The fact that we can save some money along the way is a bonus.
Just my 2 cents.... well $8 if I had to bill for my time..
We should all just take a moment and recognize OP has actually achieved something noteworthy here. He has successfully convinced his WIFE, of all people, that he is saving money by brewing beer! Bravo!
Someone please make a meme: I don't always cook the books, but when I do it's to convince my wife that I'm saving money by homebrewing.
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I'm usually on HBT while at work. I get paid to post stoopid stuff.
While I am the extreme, I have never actually met anyone that has saved money homebrewing. Wine- yes, beer - no.
A sole prop would not be what you use for any manufacturing plant, especially one making alcohol. And labor cost is an expense against profit and is included in most business plan projection ratios. Your lender is going to look at you like a dog with a new pan if you explain you don't have labor costs.You can count labor all you want but that isn't how it works within a sole proprietorship. You can't take perceived labor costs from expenses. Sometimes you can pay yourself a hefty sum, sometimes you can't. There isn't a distinction between the individual and business. Personal labor doesn't affect the accounting.
In the case of injury hopefully an owner has insurance coverage or savings.
3000 is a lot?The way I look at it is that it's not much different than posting on this site.
Some people have over 3000 posts... at an average of 8 minutes to read and reply to a post thats over 400 hours. Thats not counting the hours of just reading time without posting. Would we spend this much time if we felt it was costing us money ? No we do this because it's a hobby that is rewarding. The fact that we can save some money along the way is a bonus.
Just my 2 cents.... well $8 if I had to bill for my time..
I'll pay it with tags from my McCafe drinks.I'm sending you all a bill for my time.
Just curious, what type of keezer does 1k buy you. Pictures please.
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