economics lesson


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Posted by Jerry in Idaho [24.223.94.244] on Thursday, September 19, 2013 at 13:18:43 :

In Reply to: WM300 Update posted by Sterling Luttrell [99.58.180.94] on Thursday, September 19, 2013 at 11:01:26 :

Yes, a "thank you" always feels good. But there is a lot to the picture that is unseen here. I build custom homes for people with way too much money. At least up until the recession (depression, whatever). Sometimes second or third homes. I was usually involved in a project for a year or more. I usually added 10% to the total cost of the house. If the house cost a million dollars that looked to the owners like I made $100,000. They didn't allow for the fact that out of that 10% I had to pay my business insurance for the year, pay my daughter (book keeper/accountant) for the year, buy fuel for myself and my sons for the year, pay for saw blades, tool repair or tool replacement for the year, and numerous other items I haven't listed. All of a sudden the $8000/month shrinks down pretty fast. When the owner commented about how much I made, it was not always easy for me not to say something like: "Well you are the one who is going to live in this million dollar home on the lake, when you are not living in your multi million dollar home on the beach in Calif., or....? Given the fact that VPW has the same type of overhead, I doubt that the owners kept a whole lot of that $6000 you spent in that month.



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