Farrier Price Worksheet
Determining a fair to charge for your skill and experience of shoeing horses can be daunting. You want to be fair to your clients AND to yourself and your family.
Some farriers start out by establishing their price based on other farriers in the area. This is probably the best way to go out of business. You might be taking in the same amount per horse as someone else, but most likely you have different business costs. Another farrier might now be setting their price based on sound business practices.
Some farriers set their price based on what 4 horseshoes and 28-32 nails cost. This is also a poor way to determine the price you must charge to shoe one horse. In order to set a fair price you need to include all of the costs of the operation. Vehicle costs, insurance costs, tool costs, retirement and vacation benefits, telephone, accounting, etc. etc.
Successful farriers establish their prices based on sound business and bookkeeping guidelines.
Several years ago I created a spreadsheet that would help farriers determine the price the must charge to meet all of their business expenses. You can download the spreadsheet Price Calculation if you want to use it (link is shown below). Although I have had an accountant review the spreadsheet for accuracy, I recommend that you share it with your accountant and get their input.
This spreadsheet will take some time and effort, but in the end it will calculate how much you need to charge for each horse you shoe. The price is based on your numbers for 1). How any horses you wish to shoe each month. 2). All of your business monthly expenses. 3). Covering any seasonal slow down in your work.
There are sample numbers to show you how it works. Most cells have "pop" up notes that explain how to enter data in that cell. Green cells are free and you can enter your business data in them. Yellow cells contain the formulas used in calculations. Those cells are locked, so don't worry about messing up the calculations.
If you have any comments or questions, feel free to email me at: email@example.com