Using the Take-home Income Calculator
Course

Using the Take-Home Income Calculator

This course will show you how to use a simple model to answer important questions: How many items must I sell to cover my costs? For the amount of time I can commit to my business, how might I achieve my financial goals? How might my investment in personal productivity impact my take-home income? We designed this course for craft makers and artisanal manufacturers in particular. Throughout the course, we follow the example of a maker of hand knit, wool hats. In the second module, we use a simple Excel spreadsheet model in a fairly sophisticated way. Although prior experience with Excel or Google Sheets is helpful, it's not necessary.

8 Lessons

About this Course

It’s tough to make predictions, especially about the future.
–Yogi Berra

The purpose of this course is not to give you some kind of magical formula for setting product prices. Instead, I’ll attempt to persuade you of the value of “little models” that allow you to ask useful “What if?” and “Under what circumstances?” kinds of questions. These kinds of questions will help you better recognize and test possibilities:

  • How many items must I sell to cover my costs?
  • For the amount of time I can commit to my business, how might I achieve my financial goals?
  • How might my investment in personal productivity impact my take-home income?

Be sure to watch the course introduction video, “Why We Use Models.”

Recommended Background

We designed this course for craft makers and artisanal manufacturers in particular. Throughout the course, we follow the example of a maker of hand knit, wool hats. In the second module, we use a simple Excel spreadsheet model in a fairly sophisticated way. Although prior experience with Excel or Google Sheets is helpful, it’s not necessary.

Join the Conversation

We invite you to engage us, your peers, and others in conversations about your business. If you have a question, please ask it – others will appreciate your curiosity and courage. If you have suggestions about how to improve this course, please let us know. We strive to do our best work, but we can always improve.

Course Structure

This is a self-paced course punctuated by two live conversations. Feel free to pick and choose among the lessons according to your interests, needs, and background. Lessons consist of a 1 to 8 minute video and supplementary material, including downloadable Excel models.

Pricing for Profit

In the first module, you will learn how to apply some basic concepts about product pricing:

  • The Real Purpose of Profit
  • Cost Plus Pricing
  • Conducting a Comp Check

Exploring Possibilities

The lessons in the second module show how to use a simple model to estimate take-home income based on price and cost inputs:

  • How to Download and Install Microsoft Excel 2016
  • Overview of the Model
  • How to Find Your Break Even Sales Rate
  • Meeting Your Financial Goals with Constrained Time
  • How to Value Efficiency

More importantly, it shows you how to ask questions about how changes to your business can yield more desirable outcomes.