Building Equip. for LHBS!

[Anubis]

First I want to say thank you. If it weren't for the questions you have answered and the confidence you've given me I would not be where I am.

So I'm at work today and a man walks up to the counter and asks for fittings for his pump. I look down at the pump and instantly recognise it. I look up and ask, "you brew?" The customer explains that he owns the LHBS that I buy all my stuff from and within minutes we are talking about some of what I've built. Working in plumbing I have the skill and material to quickly build something like a immersion chiller at cost in little time. So now I am going to design, build and sell Chillers, MLT's and other stuff through the LHBS. He was excited about it so now I am REALLY excited. Just one step closer to getting paid for doing what I love!!

 

[JebCkr]

Congrats, it seems fate is smiling on you. If you're willing to call getting paid for a hobby fate.

 

[Anubis]

Thanks. At this point I think I'm calling it luck.

 

[Anubis]

Problem:

I don't know how muchto charge. Labor aside I can make a chillerfor 25-30 but he will mark it to sell.Howmuch do I mark up to still make a little money and still keep it reasonable for people to buy. Should I just ask him?

 

[Sithdad]

Typically it's around 20% mark-up for parts.

 

[Bobby_M]

Warning.. you may be on the verge of doing a lot more building and fridge-brewing-related labor and a lot less brewing. Ask how I know.

 

[chapa]

Warning.. you may be on the verge of doing a lot more building and fridge-brewing-related labor and a lot less brewing. Ask how I know.

I suppose we should be careful what we wish for...but there's nothing like getting paid for expanding on something you're already good at and have the resources at your disposal....as long as you can make it worth your time. That's the only issue I can see with building chillers...copper is expensive! I'm sure you'll find some better sources for buying it in bulk though, to make it even more cost effective. Good luck!

 

[Anubis]

For the most part I will be building them at during down time and at lunch. So it won't cut into my brew/personal time. I was thinking about marking them up x1.25. I love building things, brewing and money so I feel likethis might work out for me.

Bobby, I gotta ask.... How? =D

 

[JonW]

Start writing off your brewing expenses as R&D! If you're going to do this as a hobby to make money, you need to show your expenses as well. If your expenses add up to your sales - guess what - no tax!

 

[samc]

Consider your early work to be a learning experience. You can always charge more later on or as you build more you can buy the materials in bulk and save that way. I doubt you will be rich from this sideline anyway, but it may lead you to become the next Blichmann.

 

[Anubis]

Start writing off your brewing expenses as R&D! If you're going to do this as a hobby to make money, you need to show your expenses as well. If your expenses add up to your sales - guess what - no tax!

Hmmm I didn't think about that! Brings up another question though, should I be getting an LLC or something similar? For taxes and whatnot, I am newb when it comes to that sort of thing.

 

[JonW]

You don't need an LLC. You can do it as a sole proprietorship and just add a Schedule-C to your 1040. Use H&R Block online or Quicken to do your taxes and it will walk you through the schedule. Go to IRS.gov and lookup Sched C and just review it to be familiar with it.

 

[Anubis]

Wow, yeah I'll have to start doing a lot of reading. Thanks for the info!