Wednesday, 26 February 2014

Why its cheaper to build a boat kit yourself

Building our boat kits by others.

R.O.E is R18.00 to the GBP and R10.90 to the U$.

We were asked for a building price for one of our dinghy kits recently.

This is fine but it will escalate the price on the end product and by some margin.

Lets say the dinghy kit cost R8800, a simple rule would be to say twice the cost of the kit
To cover a trades persons time, so another R17600, this is unpainted and unfinished.

So we now ask R26,400 plus Vat on the kit which will be R1232 extra, the cost is now R27,632 total, or in Pounds 1535.11 which sort of looks a whole lot better?

As it turns out, a local boat builder asked just R12,000, so a large saving over my estimate, he tells me he expected to take eight days which is some sixty four hours (64)
So he is asking just R187.50 per hour for his labour and no Vat, which is 14% locally.

As a local mechanic charges R350 an hour, the plumber and last years rate R480 an hour and last year a large VW service garage in the city was at R560 an hour, I think our local boat builder is far too cheap, what do you think?

The issue is and always will be, if we do the work ourselves the savings can be huge, just look at the numbers above and you can see the savings using your own labour is well worth the personal effort, plus of course you get that personal satisfaction of having built a boat yourself, that’s worth lots I guess?

This is just a thought but I do believe we should all be reasonably paid if not well paid for such a task as building a boat.