Hello everyone. Got a 100 years question! I’ám from Lithuania, so this question can be different "‘amount’’ answer for me. How do you calculate money for jobs? I welding furniture frames, like table legs, comodes, ilands frame, so on… So for example, we got 20x20mm sq pipe, 1 meter is like 1.5e, making for example 1000x600x400mm coffee table, so how you guys calculate money for this one for costumer? Thanks for answers and sorry for EN.
I do material cost with 20% on top and forgive out a reasonable hourly rate that I’d be happy with but doesn’t seem too excessive for the customer
First off…,
If you are in business for yourself…
You need to have a shop rate… These are all the expenses needed to keep the shop doors open… Rent or lease, electric, utilities, water, etc, etc. shop insurance, liability insurance, etc.
Then you need to figure out what you need to live per day, week, month, year… basics, and if you want health insurance and/or life insurance,
Then figure out things like if you want vacation and associated perks…
Once you have this compiled break it down into how many hours per week you will work…
Remember most of your working day will be on daily, day to day operations, setting up and meeting with customers… Ordering materials and the like…
I figure on a good day about 35-40% of the shop time I’m actually in the shop working on the project.
If you are doing welding and fabrication work…
You can establish a running $$$ for every inch of weld…
This varies per Tig, stick, Mig…
If the design is supplied with no changes… Then it’s strictly "materials, welding consumables, and Misc (welding prep, grinders, sanders, plasma, saws etc,etc and the items used while preparing the materials for welding).
If the customer does not supply a drawing with materials pick sheet…
Then I get a design fee and this is billed at shop rate… I’ll sometimes throw in the materials pick sheet as I have to order the stuff anyhow…
On larger jobs the “Materials list” can be time consuming so this can be billed at shop rate and part of the design phase.
Keep in mind:
Business is business… There are people out there making large amounts of money for lack luster work…
Keep your quality where it should be…
I won’t work for people that won’t pay me a fair wage…
Some of my customers are Dr’s, Lawyers, Car dealers, companies who can’t make the items in shop…
All these people make a very good hourly rate… yet, they only see value where value is to them…
So, keep a tidy shop as looks are important until you establish a quality client list.
Once you are well established you will start to know the jobs to take on and the jobs you will pass on.
I’ve been in business now for myself for over 40 years…
If you get to a point where work exceeds your ability to work a 40hr week… Raise your prices…
Anyhow, rather detailed and like any business there are people who will pass along their own thoughts on the subject.
I took many business courses back a long time ago and what they shared with me, is what I shared with you…
It doesn’t really answer your question…
But figuring what you need to make per hour is a great place to start…
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Thanks for reply, trying to get up in garage, eelding furniture, so all my work begin after 8h in work, so there is about 20h in week after normal work, idk what is good hourly rate in our ciuntry , just know between 20 -30e and profs making in construction site with stick 40h, most works i do is mig/tig, but cant count 2cm, so for that furniture frames most time i take from mind, no calculation, so tryin to make scheme for that issue