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Patrick -> RE: Blackshear/Reyes style (Dec. 6 2010 17:40:05)
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The most prolific builder I know of is Robert Ruck. He builds between 30 to 35 a year. I once asked him how it was possible to make that many in a year. He said when he steps into the shop; his mind set is as though he is running a small manufacturing plant. The only help he has is wife doing more mundane task. He builds all his own rosettes and bindings. He does use lacquer, but a lot are French polished.
He told me he is in the shop an average of forty hours per week or less. He takes a quite a bit of time off as well. So if we figure 50 weeks maximum at 40 hours we have 2,000 hours per year. His wife is in the shop full time so let’s add in another 1,000 for her. So 3,000 hours per year equates to 100 hours per guitar with 30 built per year. 100 hours divided by 40 hours per week equals 2 ½ weeks per guitar.
So can you build one in three weeks or less? It can be done, but only by a machine like Ruck. DeVoe does something like 24 a year, so he’s very prolific as well.
So let’s now look at the economics in building. Using Ruck as our example, let’s assume he builds 30 per year. I believe he gets around $5,000 on average (which is high for most builders). So $5,000 times 30 equals $150,000 per year. A lot of dough right? Well not necessarily. He probably has at least $500 per guitar in material cost. So $500 times 30 equals $15,000. You then need to take into account overhead of tool cost and shop expenses. (glue, electricity, etc.). I’m not a builder, but I would estimate at least $100 in overhead per guitar, so that’s another $3,000 (minimum). He works from his home, so let’s not add rent.
So we now take $18,000 off of $150,000 which leaves $132,000. Still a pretty good pile of cash, but remember that’s for both he and his wife. So a pretty descent income but he is not getting rich. Let’s put this into perspective. In the area Ruck lives in, Registered Nurses make $60,000 to $80,000 per year. A mid level executive would make at least $100,000 per year. So if he and his wife were in the main stream workforce they could easily bring in $150,000 or more.
Also keep in mind, most implorers in the US pay for all or a major share of health insurance cost, which for a family like Ruck can easily run $20,000 per year that he has to pay for out of his pocket. He also has to pay the full Social Security taxes on his income being self employed, where an employer pays half in the US. And then take into account most employers have some type of retirement plan that they contribute to, that Ruck has to do out of his pocket.
Doesn’t sound so glamorous now does it? And remember, Ruck is at the very top of the building world as for income. Most would be lucky to be at a third to half his income.
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