Re: [Harp-L] B-rads

[Joseph Leone <3n037@xxxxxxxxxxx>]

I don't know if people understand that IF Brad were to pay his employees (5..I think?) 1.5X min. wage (or $10.88 per hour), his cost for labor ALONE would run almost 10K PER month. One would have to sell at least 100 harps PER month JUST to make payroll.  That's 1200 per year, btw. That says nothing of leasing a space,  risk insurance, light, heat, storage, shipping, packaging, postage, transportation, taxes, licensing fees, accident insurance, an emergency eye wash station, fire extinguishers, or a salt tablet dispenser. I'm not so sure that they were making that many harps. 

Now if one were to sit down at their kitchen table and make a harp completely by hand, I extrapolated that the cost would be $808.70 per harp. And that's with none of the above other than Coolie wages for the builder, AT his own home, with none of the ancillary expenses. 
Now IF  one could buy the reeds from a source (at, say $2.oo per reed), one could reduce the labor costs of making the reeds and bring the price down to $239.61. BUT, this could also be a problem in and of itself. Why would you want to buy a harp with marginal reeds while paying for PREMIUM reeds. AND, what supplier would sell you reeds...unLESS your price point was going to be in an area which would NOT cause them competition? 
If one could sub out some of the parts and add some machinery, maybe get the price down to $70.99.

BUT, a company that has been in business for a long time and has already amortized their machinery and buildings and spread the costs out among thousands and thousands of harps, the cost could be $21.03. And THAT dear friends, is exactly what is being done.  Because the labor costs for a harp are: (and this includes pension plan & health insurance for the workers) $6.23 for labor & a 'whopping' $1.84 for materials. Everything else are what I like to call lost money costs. 

I am really bummed out over the whole thing. As the entire bunch involved in this endeavor are super people. 

sadly....... smokey joe  

On Aug 5, 2011, at 11:15 AM, mik jagger wrote: