What do you consider included in the cost of your TD/TTT?

[goldcoop]

Hey all!

If you wear a product cost accountant's hat they would:

Have a BOM (Bill Of Materials) including every piece of ply, trailer frame parts, paint, lights, nuts, bolts and screws, etc. etc. to build that product.

Have a process sheet or time card for every HOUR of operations going into the product (welding, sawing, sanding, finishing, wiring, plumbing, etc, etc.).

The above items would be DIRECT Costs going into the product.


They would then have some history of the operating costs of the facility (gas, electric, water, heat, machinery, mortgage, taxes, etc, etc.) OVERHEAD.

There would also be INDIRECT labor costs such as R&D, Sales, Administration, etc., etc.

SOOO final product costs would consist of:

ALL DIRECT costs and a % of OVERHEAD & INDIRECT costs (usually divide overhead & indirect totals/year by total output of products/year)

WOW, ok I probably forgot something but this is just a quick and dirty version!

Cheers,

Coop

[Gaston]

I only count the actual materials that go in to a project. I consider the tools stuff I should of had anyway so why charge them off to the tear?? I don't charge off the oven when I make dinner. My better half keeps track of every thing even the gas to the big box store! I'm surprised she does'nt count the cost of the beer consumed in the shop

[cracker39]

It looks like most are in general agreement as to what is considered the cost of the trailer. Coop, If we were project cost accountants, would we charge for the % of overhead by just the amount of time we spend working on the project, or 100% of the time since the project is on the property whether we're working on it or not? Hmmmmmmm.

[goldcoop]

Cracker-

Good point!

That's where you get into FIXED & VARIABLE costs...

Heavy subject! Makes bean counters squirm!

Your fixed costs are generally mortgage, machinery payments, insurance, etc. are being paid regardless of output.

Variable costs are raw materials, payroll, utilities, inventory (carrying costs), etc. these will vary with the season and sales.

So I guess to answer your question it would be a percentage of both of these
in total.

Your paying for the property 100% of the time and a % for utilities, payroll, etc. While product is being produced...

Does that help or hurt?!

It hurts when I think!

Cheers,

Coop

[cracker39]

Coop, I don't want to think about it either. Seriously, I did run into a little of that when I landed a gig with a small family owned business when I lived in MD. They weren't happy with the guy who made their display stands they put in stores. He didn't cut each one exactly the same and it was difficult to do the silk screening on them. I made a router guide template to cut them all exactly the same shape and got the job...but I digress. I manufactured those displays in my workshop, in my spare time and did compute % of mortgage and utilities for my taxes, which went under my (then) business name Summers Woodcraft. (I also did craft shows with my own stuff I made). So, I am somewhat familiar with the process and don't want to have to get into it again...lol. Those two part time endeavors paid for all of my initial workshop tools. I hope to get into something like that again now that I am retired.

[Joanne]

Hey Cracker,

I've had a number of financial surprises in this build. I've spent over $300 on epoxy resin & glass cloth. I don't remember how many spools of flux core MIG wire I went through, but it was at least 4 or 5. They are over $10 per spool. I've gone through a LOT of PL polyurethane construction adhesive at $4+ per tube. Recently I've found the aluminium trim pieces to add up fast. They are running me between $8 and $10 per length. The price for the hurricane hinge, door latches and handles, and the rubber gaskets add up too.

Obviously I was optimistic when I started thinking about the costs. I'm finding that there are a lot of "hidden" costs that I hadn't even considered. I think that there is a correlation between cost and final result. The nicer you want the fit and finish, the higher the total cost of materials.

That's my .02 worth.

Joanne

P.S. - I'm *not* keeping track of the cost because I don't want to be depressed on how much I spent.

What items do you include when you tally up the total cost of your trailer? Do you include the cost of tools you have to buy? Other extras that don't actually go into the trailer or tow vehicle itself?

I see some really high figures for a TD...like up to $5K. I hope to keep the cost of my TTT around $2K. I am keeping my TTT very basic though. I already have a tow vehicle set up with hitch and connector. I don't think of tools that I buy as part of the cost to build, since nearly any tool that I buy will be added to my workshop to use on a lot of other projects. I have spent quite a bit already for small hand tools (biscuit joiner, pocket hole jig, folding work stand, cordless drills (2), bench disk/belt sander, clamps, etc.), and plan to buy a 6" bench planer/jointer soon. These are tools that I need and want anyway. But so far I have bought nothing that will actually go into the TTT except the jack stand for the tongue, a float charger and some shrink wrap for wiring that was on sale.

The items that I consider a part of the trailer costs will include all materials for chassis and body, and interior equipment like AC unit and any appliances I might buy (e.g., a Microwave...I aleady have a propane camp stove). In other words, it if doesn't go camping with me, and a tool that I buy can be used for other projects, I don't consider it part of the cost to build and equip my TTT. I like woodworking and tools are an investment in my hobby, not the trailer.

That's how I see it. What's your take on the cost to build?

[madjack]

Joanne...all that "cost" depression will disapear on your first succesful campout and you get the "look" when you tell 'em you built it yourself
madjack

[Joanne]

Joanne...all that "cost" depression will disapear on your first succesful campout and you get the "look" when you tell 'em you built it yourself
madjack

Jack,

There is a lot of truth in that statement! I put off the decision to build a tear for three years because I believed that it was beyond my capibilities. I still feel "over my head", but I just take things one step at a time. It's slowly coming together, much to my surprise.

I've already started to get some of the neighbors stopping by to see how it's going. A lot of slow "drive by's" too. The only negative comment that I've heard so far is the next door neighbor who referrs to it as "that piece of sh*t". You can guess that I don't get along with her very well.

My goal is to make this years Redwood Gathering. It doesn't have to be absolutely complete for that, just far enough along that I can shut the doors and hatch!

Take care,
Joanne

[Arne]

Someone once said the price you paid will soon be forgotten, but the quality will be there long after. It had more to do with buying quality items, but I suspect it applies here too.

If you skimp and spend a thousand dollars less because you cheap out, you will live with the results for years down the road (in this case, literally).

I did leave things out to save initial money, but not things I could not add later (like nice reading light, a/c, etc.)... I had a pretty good mental image of the final product I wanted and tried to build the basic tear so that I could achieve that end.

[mikeschn]

Someone once said the price you paid will soon be forgotten, but the quality will be there long after. It had more to do with buying quality items, but I suspect it applies here too.

Agreed Arne... see my sig...

Mike...

[Steve_Cox]

Dale,
I've kept every recipt for materials and tools, but I am waiting until I finish to add them up. Lucky for me business has been steady and grown kids haven't been asking for money the last few months... So the teardrop work has flowed pretty smoothly... I really am beginning to wonder what the final cost will be....

Steve

[cracker39]

Steve, I am the opposite. I like to have a good idea of the cost before I start. I know I'm going to spend it anyway, and like to compate the final cost with my up front estimate. The final cost is always more.

[Steve_Cox]

Steve, I am the opposite. I like to have a good idea of the cost before I start. I know I'm going to spend it anyway, and like to compate the final cost with my up front estimate. The final cost is always more.

Dale, I have this quirky ability to guess how much stuff costs.... example my wife can go to the grocery store and I usually guess within a dollar of how much she spent as soon as I see the grocery bags.... same with when I was working for others... project expenses were always pretty close to what I thought they would be... not necessarily within budget, or what the boss wanted to hear, but I could tell......... no real reason for it that I know of.... just happens..... I have a number I put on the teardrop, but all I'll really say is, it is going to be about $762.50 moore than I told my wife it would cost....

Steve

[cracker39]

Steve, that's hilarious. It is because it sounds SO familiar. When asked what it will cost, I just start into talking about the construction details and what I'll need to buy and before I get around to the cost, she is tired of hearing about it and drops the subject. That's my story and I'm sticking to it.

[doug hodder]

I think the real thing that drives costs up are all the ideas that you come up with half way through the build, thank you everyone on this forum!!!....For me....I come up with all sorts of ideas that weren't originally planned....I figured I would do a basic tear...but then pictured in my mind how I wanted it to look in the end...far cry from where I started....but I think you're a lot better off to build it the way you want and not to necessarily stay within a planned budget...hindsight is 20/20....and it's a lot easier to do it now rather than re-do it later..so if you need a budget...make it high and come in low....I'm in a different situation however...the dog never complains when I buy an outboard, car or build a tear...,but then she can't cook either....Doug