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Thread: Shop rates

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  1. #1
    Join Date
    Jan 2012
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    789

    Shop rates

    I've used my 1100 exclusively for products our company sells. Recently I've picked up some business which, when you boil it down, is mechanical engineering combined with machine time. I'm trying to get a feel for what are typical rates people charge per hour for running the machine. All the engineering is charged separately on this job. I know the rate is highly dependent on the value of the work I'm displacing off the machine, etc. If you don't want to publish the rate, could you PM me? Just trying to get a ballpark.

    Thanks!
    Tom

  2. #2
    Join Date
    Aug 2009
    Posts
    986
    I ask for $60 and hour, and will be "talked down" to $50.

    The high price discourages anyone who isn't serious, which saves me no end of trouble.

    Frederic

  3. #3
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    Jan 2012
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    Thanks. Is that for your CAM work and machine time? Or just machine time?

  4. #4
    Join Date
    Aug 2009
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    986
    Both. I'll design, CAM, and manufacture all for that rate.

    Heck, for that rate, I'll mow lawns!

    Frederic

  5. #5
    Join Date
    Mar 2009
    Posts
    1863
    My shop rate is $60.00 per hour. If someone offers less, I tell them that's the price. If they are unhappy with my price, I politely tell them they are welcome to take their work elsewhere.

    I will not negotiate price or quality.
    You can buy GOOD PARTS or you can buy CHEAP PARTS, but you can't buy GOOD CHEAP PARTS.

  6. #6
    Join Date
    May 2007
    Posts
    428
    $60 seems pretty par with most of what we hear. It's certainly fair, that's for sure.
    Dolphin CAD/CAM Support

  7. #7
    Join Date
    May 2012
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    0
    A very wise and sucessful friend once gave me some good advice for how to determine worth. His philosophy was to start at the top rate wise and work your way down. You can always come down on price rapidly and drastically and it will be well accepted by customers but changing your rate in the other direction takes years once customers become accustomed to it. So start where you want to be and work down until you get work.

    Another great tidbit from him was that if you don't like doing something, double your price. Eventually you either won't have to do it anymore, or you will enjoy doing it.

  8. #8
    Join Date
    Nov 2005
    Posts
    201
    Quote Originally Posted by jrm850 View Post
    Another great tidbit from him was that if you don't like doing something, double your price. Eventually you either won't have to do it anymore, or you will enjoy doing it.

    LOL i like that one

  9. #9
    Join Date
    Mar 2009
    Posts
    1863
    I met a man at an auction once and after some conversation, he asked me what kind of shop I had. I told him I had 2 CNC mills and some support equipment.

    He called me a couple of days later and brought over some work to look at. He asked what my shop rate was and I told him $55.00 per hour. That's when I got the shock of my life. He told me to bid his work at $90.00 per hour.

    That turned out to be a really good customer.
    You can buy GOOD PARTS or you can buy CHEAP PARTS, but you can't buy GOOD CHEAP PARTS.

  10. #10
    Join Date
    May 2007
    Posts
    428
    Never know what you may run into... That's great!
    Dolphin CAD/CAM Support

  11. #11
    Join Date
    Jan 2012
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    789
    Thanks guys. That's all good advice.
    I had this image in my head of two different rates. My skilled time designing fixtures, programming the tool paths, etc, and a second rate for the machine running with an less-skilled employee changing tools and material.
    After listening to you, I'm not sure that makes any sense. I still need to monitor to production run, and it seems to be standard to roll the different phases into one rate?

  12. #12
    Join Date
    Mar 2009
    Posts
    1863
    It shouldn't make any difference whether you're doing design work or machining. Your shop rate is your shop rate.

    If you're sitting at the computer doing design work, you're not making chips. If you're at the machine making chips, you're not getting any design work done.

    A can of soda costs the same regardless of what you're doing.
    You can buy GOOD PARTS or you can buy CHEAP PARTS, but you can't buy GOOD CHEAP PARTS.

  13. #13
    Join Date
    Nov 2010
    Posts
    360
    $60 here too, though I can improve that by running the feedrate at 50% (just joking):rainfro:

  14. #14
    Join Date
    Aug 2009
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    986
    Quote Originally Posted by dbrija View Post
    $60 here too, though I can improve that by running the feedrate at 50% (just joking):rainfro:
    That's how the shampoo industry doubled their profits.

    Old instructions: Lather. Rinse.
    New instructions: Lather. Rinse. Repeat.

  15. #15
    Join Date
    Jan 2012
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    I put it to good use today. Thanks for all your help!
    Tom

  16. #16
    Join Date
    Feb 2009
    Posts
    180
    There is a website called freelancesearchers.com where people can offer jobs for bids and others can bid on jobs- maybe give it a look

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