01
List your fixed monthly costs
Include rent or space cost, electricity and power, machine maintenance, staff wages where relevant and the tools the studio runs on.
Most studios know the material cost of an order and have never added up the true monthly cost of being open. That is how a studio can feel busy and still not know whether it is making money.
The method, plainly
02
Add variable costs per order
Materials, thread, fastenings and outsourced work belong to the order, because they scale with the work.
03
Work out your monthly total
Fixed costs plus expected variable costs gives you the number the studio must earn before it makes profit.
04
Compare the number with realistic output
A studio can only produce so many quality bespoke pieces a month. If the break even point needs more pieces than you can make, the problem is pricing.
The reason this stays fuzzy is that the numbers live in different places, with rent in one app, materials in a notebook and order values in memory.
TexoIQ keeps costing and orders together, so a studio can see whether it is actually making money, not just whether it is busy.
Common questions
What costs should a tailoring studio count
Count fixed monthly costs and variable order costs, then compare both with realistic monthly sales.
What is break even for a studio
It is the point where the studio has covered the cost of being open and the cost of producing the work.
Why can a busy studio still lose money
If the price of each order does not cover overheads as well as materials and labour, volume can hide the loss.