Jump to content
Universal Psychic Guild Forum

# Should I buy it?

## Recommended Posts

I work from home working with glass. I want to offer new products but in order to do this, I need to invest in a kiln, but I'm unsure if I should or not. I found one at a good price. Should I buy it?

Thank you so much for the help. I'm really unsure :(

#### Share this post

##### Share on other sites

Basic accounting will get you farther than a psychic will! :lol:

Start with a fundamental break even analysis (i.e., how much stuff do I need to sell to recover my cost for the kiln):

Profit = Price - Cost of Goods

Profit X Items Sold = Kiln Price

(that's a simple breakeven; when we look at really large capital investments for large companies we have many other things to consider like tax incentives, variable cost, depreciation, etc, but no need for all of that. This will get you in the ball park.}

So, here is an example. You'll need to use your real numbers. Lets say you materials to make a glass product cost \$20 and that you can sell the finished product for \$30, so, you profit per item is \$10. Lets say that the kiln cost \$300. So, at \$10 profit, you would need to sell 30 items to break even. (when you build your budget, you, of course, have to allow for continuing to buy supplies (cost of goods) and any maintenance costs that may need to be made to the kiln through use).

Using our above formula:

\$10 = \$30 - 20

\$10 X 30 items sold = \$300 Kiln Cost

That's the simple formula based on fixed costs and fixed sales price and profit.

The next issue that I address after knowing this quantity to breakeven is the TIME to breakeven. That is, how long does it take me to sell the number of items that it takes me to get to breakeven.

And, does this kiln help me do things faster and cheaper than my previous method. (So, assumed in this is that my costs of goods sold (with time being a costs in most businesses in the form of labor costs) did not go up as a result of buying, in this case, the kiln.

#### Share this post

##### Share on other sites

You also want to take into account other costs associated with the kiln. Electricity usage or other fuel costs. And they seemingly take a lot of maintenance and can be finicky.

If this is a new product and you need to test out the success, perhaps you want to try renting kiln space at a pottery place or university's art department if that's an option. All of the schools I've been to have that option for people who don't attend the college and it's more reasonable than the shops that let you fire for a fee.

I think yes..

#### Share this post

##### Share on other sites

Yeah I'll have to look into using a kiln somewhere else as I found out this specific kiln I was going to purchase second hand for cheap is not good for what I wanted to do :(

Thanks everyone :)

#### Share this post

##### Share on other sites

Yeah I'll have to look into using a kiln somewhere else as I found out this specific kiln I was going to purchase second hand for cheap is not good for what I wanted to do :(

Thanks everyone :)

what are you wanting to do and what does this one do?

#### Share this post

##### Share on other sites

I wish that my wife would have asked me to do the math of the first (and, subsequent) kilns that she bought!

#### Share this post

##### Share on other sites

I want to use it to melt bottles but this one is a manual kiln and i was told it's better to use a digital one.

#### Share this post

##### Share on other sites

I work from home working with glass. I want to offer new products but in order to do this, I need to invest in a kiln, but I'm unsure if I should or not. I found one at a good price. Should I buy it?

Thank you so much for the help. I'm really unsure :(

PG is right, somethings are best answered with simple accounting. You have free will.

#### Share this post

##### Share on other sites

I'll come up with new products that won't kill the bank. Have a few I want to try :)

## Create an account or sign in to comment

You need to be a member in order to leave a comment

## Create an account

Sign up for a new account in our community. It's easy!

Register a new account

## Sign in

Already have an account? Sign in here.

Sign In Now

×

• Leaderboard