This fictional example is a five-day mixed visual-art camp for up to twenty-four participants. It uses ordinary approved studio materials and a small final display. It does not include meals, transport, specialist firing, or overnight care.
Fixed costs for the week
| Item | Fictional cost |
|---|---|
| Teaching and care team, including preparation and cleanup | $4,300 |
| Studio hire | $1,350 |
| Rights review and display setup allowance | $250 |
| Allocated insurance cost | $300 |
| Administration and booking work | $600 |
| Total fixed costs | $6,800 |
Cost for each participant
| Item | Fictional cost |
|---|---|
| Materials | $55 |
| Equipment wear allowance | $12 |
| Display and take-home packaging | $12 |
| Payment and individual booking costs | $16 |
| Total variable cost | $95 |
At a $465 fee, each booking contributes $370: $465 − $95 = $370.
Break-even is $6,800 ÷ $370 = 18.38, so the model needs nineteen paid places.
| Paid places | Revenue | Total modeled cost | Operating result |
|---|---|---|---|
| 16 | $7,440 | $8,320 | −$880 |
| 20 | $9,300 | $8,700 | $600 |
| 24 | $11,160 | $9,080 | $2,080 |
A large project can erase the small surplus. At twenty participants, an unplanned $35 material upgrade per person costs $700, turning the $600 result into a $100 loss.
Price the project from a tested sample. Include failed attempts, offcuts, cleaning, packaging, and teacher time. If an item is donated, show both the cash cost and its replacement value for future planning. Do not build next year's price on an uncertain gift.
Your task: Cost your most expensive project and your slowest project before setting the fee.