OUGD502 - Taking Care of Business - Updated Costings & Hourly Rates

Amelia and myself decided to re-assess the costings for Screeeeen whilst putting together the presentation slides. Our original costings were a good start, however we felt we needed to look at them again and be a little more thorough. There were a few important things that we didn't account for originally such as studio furniture and a light box for the studio. Here are the updated costings.

Startup Costs:

Studio Deposit: £100

First Year Studio Rent: £3,000

5 x Mac Mini’s: £4645

5 x Monitors: £600

5 x Adobe CC: £3912

A3 Printer/Scanner £200

Lightbox: £40

Studio Stationary: £400

Office Furniture: £600 

WeTransfer Plus: £90

Marketing: £1000

Insurance: £400

Domain Name: £20

Total: £15,007

Operating Costs:

Monthly Costs:

Studio Rent: £250

Internet & Phone: £50

Electricity: £200

Total: £500

Yearly Costs:

12 Months Studio Rent: 

WeTransfer Plus: £90

Insurance: £400

Domain Name: £20

5 x Adobe CC: £3912

Total: £4,422

Total running costs: £13,422

We then calculated the total money we would be paying out each month and yearly. We looked into how many business days there are in a year and how many business hours we would be operating withint throughout the year based on our self devised studio hours. 

252 Business Days a Year

2,268 Business Hours a Year

HOURLY RATES 

We would need to charge £100 per studio hour per person in order to maintain the studio, undertake briefs and pay fair wages. At its peak, Screeeeen would have the potential to make £4,500 a day, providing that we work full days and have a steady flow of briefs actually coming into the studio. 

We believe this is reasonable hourly rate to charge our clientèle in today's current climate and in relation to ourselves as young professionals. This would also allow us to sustain the business in the first two years without going under. 

In theory, Screeeeen would have the potential to be making an estimated £1,134,000 a year if we were operating at our fullest capacity. I can't imagine that we would be making that much money in our first couple of years, but based on the calculations made, that target amount could definitely be achieved if Screeeeen became successful and competitive enough with dedication and perseverance from all the team members.