What is your free time worth?

[widebody911]

As some of you may know, I've been making and selling fiberglass and carbon fiber Porsche parts. This is something that I do in my spare time, and while it's fun, I got to wondering if I was making or losing money.

My materials costs are easy to calculate, and I know how long it takes to perform the various tasks necessary, but the big wildcard is labor cost. In essence, what (if anything) should I pay myself for doing this stuff? For the past couple of months, I've spent all of my free time on these various projects; over the past year, I estimate I've spent 50% of my free time in this manne. Can I put a price on my free time? The irony is that my rationale is to earn a little extra cash to support my track habit, yet I now have no free time to go to the track!

Just imagine how awkward it will be asking for payment when a girl rings me up for a booty call.

Should my labor rate be akin to 'overtime' from my normal job? Or should it be similar to the shop rate of similar businesses?

[id10t]

When I do side jobs I charge 3.5-4x what my employer pays me. Works out to $60/hr

[Joeaksa]

My time is the most valuable thing in the world. I can make money all day long but the minute I just wasted with some idiot is a minute that I will never see again in my life.

I do not donate to many causes but do donate my time to various causes. Makes me feel good and helps them as well.

As you get older in life you realize what you enjoy and what you could care less about. As well you realize that time is the only thing in this world that cannot be replaced. About this moment you realize that its time to not waste it as you possibly had been doing at sometimes in the past...

[ZOA NOM]

I think the only way you can equate your free time to your salary is if you could have actually been working at your normal job at that time. If it isn't likely for you to have been on the job, then the work you perform in your free time should bear market rates compared to comparable work, warranty, etc. If I purchase something from a guy working in his back yard, I would expect to pay less than I would to a shop that performed the work and guaranteed their product.

[911teo]

Thom

this is why I asked you if you were breaking even on the reflectors.

It is a difficult question to answer because for me it depends on your disposable income...

Or you can look at what a professional in that field.

Regarding the reflectors you can look at it as Thom Fitz Ltd. where u employ Thom (a skilled worker that charge you $65-100 depending on what part of the country he is are from). Say you spent 10-12h for preparing the molds plus 0.5h per reflector I'd say your break even at $100 per relfector is around 13-15. Then you'd start making profit for Thom Fitz LTd.

Or you can look it as Thom the guy that would just get home, have a beer and relax after a long day at work... Well if he put 2h a day he'd have the molds done in 1w plus the weekend. Then it just depends on meeting demand and you can make a batch every 2-3 days...

After 2 weeks Thom the guy can buy himself a nice set of Hoosiers.

To me it looks like you should keep doing this stuff as Thom the guy. No wife, no kids, you are a free man... But it'll change soon...

Then welcome Thom Fitz LTd

[Mr_Wizard]

My free time is a valuable commodity. If you are a friend, probably gonna cost you some cold beer. If you are not a friend, you probably think I am a dick anyways and would not ask me for a favor.

[pbs911]

My normal hourly rate, $250. Reviewing and responding to this post took .2 hours. Please forward payment in the amount of $50.

[livi]

If you have the time and the means to do what you like - do it.

If you can make a few dollars in the process its a bonus.

If you don´t like it, not matter if you make money, - don´t do it. At least not if you don´t have to.

There.. simple!

[mudman]

For me, I've had an experience this winter that has changed the way I look at things. I own a landscape design/construction company, and that keeps me pretty busy during the melted months. In my little free time I do a lot of vegetable growing, not really back yard plot style, closer to small farm. I gave all of my excess away last year because I love having people eat my delicious produce. Over the winter I was offered a job as a lighting designer for the largest lighting company working at NAIAS, and on the Ford Global display none the less. I took the job, mainly because of the pay but also because I love learning new stuff and working 120 hours in a week and not eating (really crazy environment). So I got to thinking; how is it that a company can charge $200 an hour for my non experience, and ask me to direct $1500 an hour worth of labor and equipment? Well, I did a good job, my company and their client loved the work I did, and I got paid. During the summer I get paid half as much, and I'm the boss! I've decided that this year I am only taking jobs that I want to do, and I'm charging as much as I think I should get (based on comparable work/services). For the garden- no more free zucchini for my neighbors. I put in a LOT of sweat and hard work, not to mention the years of experience and experimentation/research that produce fine produce.
But in the end it is your time, your values. What is more important, making a few bucks while playing in your garage, or going to the track albeit underfunded? Let one feed the other, as long as that one is actually producing profits!
-Jeremy

[singpilot]

When it comes to booty calls Thom, I figure everything is done in inches.

If I charged by the inch, I'd never get a second call.

I figure the booty call time is not really free time, except that it takes away from my projects. Last night was a choice of adjusting the valves on a small twin, or adjusting the attitude of a set of twins after a 1 hour bike ride.

The sunrise ride back this morning was spectacular. The valve adjust just got finished. I smiled all the way thru the job.

Priceless.

[AFJuvat]

As was stated earlier, for a friend, probably just some beer, maybe a bottle of good stuff for a large investment in time.

For business, my time is $84.00\hour.

AFJ

[cashflyer]

If you treat it like a job and really keep up with your time and figure a reasonable wage, you are probably losing money. (DOL Wage rate in Sacramento area for auto body fiberglass worker = $22.29/hr minimum.)

I know some will probably not agree with my perspective on this, but here it is...

It's a hobby. When you hang a sign out front, call yourself a professional, and this becomes your job - then you can worry about making or losing money. But for now, you don't have the infrastructure, overhead, and liabilities associated with calling this a job.

I, too, was building molds and parts for Fiats last year. I never really made any money at the projects, but it was fun. And when it quit being fun, I quit doing the projects. It was a hobby, and it was how I chose to spend my free time.

If you're having fun, keep doing it. If you aren't, then tell the people who are pestering you for parts to get bent.

Or start charging enough that it's fun again...

[VaSteve]

It's pretty much been covered. If you are taking days off you actual job to do this, if you're not making the same pay you're losing money. If you are taking away from sitting on the couch watching American Idol, you're just doing a hobby.

Now....for tax pursposes...there are other rules involved. But since I'm a CPA, I can't tell you for free

[widebody911]

I'm still having fun with this, particularly with developing new stuff and trying to find ways to make the parts lighter and turning them out faster. There's a couple of other pieces I'd like to try to make, but I'm concerned about the overall workload. I've thought about selling the mold for a given part once I get 'bored' with it.

I think I'll round up to $25/hr and call it good.

[RickM]

So, it pretty much sounds like it's a self sustaining hobby...

[island911]

The way I see it; After a project stop being interesting to me, it's work. Once it's work, it had better pay off somehow.

[RallyJon]

I'm really glad my wife's out of consulting.

"Honey, would you do the dishes?"

"Yeah, for $350 an hour."

"Nevermind."

[widebody911]

Originally posted by RickM
So, it pretty much sounds like it's a self sustaining hobby...

Somewhat more self-sustaining than being a track whore...

[M.D. Holloway]

Well, on the average I have been able to save companys recognizable $$$ of $50,000 per year for about a week and a half worth of work so it comes out to around $700 and hour if I was commssioned on my success according to how I much I save the client - but I am not, instead the company pays me a pretty nice salery and affords me some serious freedom.

I get between $2 and $4 per word for any free lance. I can write about 500 to 1000 words in an hour (with edits).

I get $400 per class session I teach = $5600 per class.

So I guess if I was ot do something that was in line with the above mentioned, I should get paid $400 to $700 and hour. That is money I could make if I didn't have to do some other work.

[widebody911]

Well, for S&G, I worked up what it costs me to make the fiberglass panel, both with and without labor @ $25/hr

http://rennlight.com/reflector/cost-fg.html

One wrinkle that's not reflected (har har) in the numbers is I'm picking up the postage for the first batch, which is averaging $8.50

I guess it's a little too soon to quit my day job...