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## it is about the money

### Paul Lewing on wed 27 jul 05

on 7/27/05 12:53 PM, Jeanette Harris at monkeymind@COMCAST.NET wrote:

> that's \$19,200 net income.
>
> But wait, you must pay taxes on that net income, so
> subtract 25% for taxes: \$ 4,800.
> \$ 19,200 - \$ 4,800 = \$ 14,400 Real net income
>
> Divide 12 months into \$ 14,400 = \$ 1200 per month true income.

But wait! It's not 25% in taxes. It's just over 40% in federal taxes (28%
income tax, 12.3% Social Security and Medicare tax, if you're
self-employed).
So subtract \$7680. That's \$11520 = \$960 per month.
Paul Lewing, Seattle

### Jeanette Harris on wed 27 jul 05

Here's an exercise that was presented during a demo some years ago at
the Oregon Potter's Association Portland Showcase. I jotted it down
at the time and found my notes this morning:

Clay income calculation

Say you want an income of about \$75,000 per year. Sounds good.

But won't sell everything you make, but through good marketing, you
sell, say at least, 85% of your inventory:
\$75,000 x .85 = \$ 63,750. Still sounds pretty good. But wait.........

If you pay 50% gallery commission*, that's \$ 31,875
Let's round it up to \$32,000. So this is the net you would get from sales.

Take 40% off for overhead: \$ 32,000 x .4 = \$12,800,
so that's \$19,200 net income.

But wait, you must pay taxes on that net income, so
subtract 25% for taxes: \$ 4,800.
\$ 19,200 - \$ 4,800 = \$ 14,400 Real net income

Divide 12 months into \$ 14,400 = \$ 1200 per month true income.

__________

*Show fees not included in this calculation, but you could figure out
what shows you did last year, what the cost was for the jurying,
booth, transportation, food & lodging and come up with an idea of
what percent of your 'commission' for a show would be.

If you've just cleared expenses, You've Paid 100% Commission to the
show managers!

--
Jeanette Harris
Poulsbo WA

Potter's Council member

### URL Krueger on thu 28 jul 05

About the only two things I remember from Econ 101 are:

1. Overall, keeping 10% of gross sales is pretty good.
If you want 100 grand for youself you better plan on selling
a million.

2. You should always be looking at what the next best
alternative is. It might actually be better.

--
Earl K...
Bothell WA, USA

### claybair on thu 28 jul 05

Oye...... Do you want fries with that???

Gayle Bair
Bainbridge Island, WA
Tucson, AZ
http://claybair.com

-----Original Message-----
From:Paul Lewing

on 7/27/05 12:53 PM, Jeanette Harris at monkeymind@COMCAST.NET wrote:

> that's \$19,200 net income.
>
> But wait, you must pay taxes on that net income, so
> subtract 25% for taxes: \$ 4,800.
> \$ 19,200 - \$ 4,800 = \$ 14,400 Real net income
>
> Divide 12 months into \$ 14,400 = \$ 1200 per month true income.

But wait! It's not 25% in taxes. It's just over 40% in federal taxes (28%
income tax, 12.3% Social Security and Medicare tax, if you're
self-employed).
So subtract \$7680. That's \$11520 = \$960 per month.
Paul Lewing, Seattle
--
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### bonnie staffel on fri 29 jul 05

income tax, 12.3% Social Security and Medicare tax, if you're
self-employed).
So subtract \$7680. That's \$11520 = \$960 per month.
Paul Lewing, Seattle

No wonder the faster I work, the behinder I get!!!

A touch of reality today.

Bonnie Staffel
http://webpages.charter.net/bstaffel/
http://vasefinder.com/bstaffelgallery1.html
Charter Member Potters Council

### Gary Navarre on sat 30 jul 05

On Fri, 29 Jul 2005 08:54:43 -0400, bonnie staffel
wrote:

>(28%
>income tax, 12.3% Social Security and Medicare tax, if you're
>self-employed).
>So subtract \$7680. That's \$11520 = \$960 per month.
>Paul Lewing, Seattle
>
>No wonder the faster I work, the behinder I get!!!
>
>A touch of reality today.
>
>Bonnie Staffel
>http://webpages.charter.net/bstaffel/
>http://vasefinder.com/bstaffelgallery1.html
>Charter Member Potters Council

Holy Wuhu Bonnie,
I'll gross more than that when I go full time at WalMart next month and I
only have to drive 7 miles to work.

G in da UP