[ofohique]

I received an offer from a colleague to start a machine shop focused on aerospace parts.
I am comfortable with the person and I know that there are many similar shops in the area, but I am not sure of the possible earnings.

Can anyone help me get a general feel for the average shop rate that is being charged by a 3-axis milling shop?

Thanks

[Caprirs]

I'm in the Phoenix metro area and aim for $40/hr. I am sole proprieter and have two used small vertical machining centers so my overhead is comparatively low (no receptionist, no rent, no huge leases on new machines, etc.) When I bid on jobs, I estimate the number of hours then add costs for materials and tooling. The more I talk to other shops, the more I realize I'm at the low end of hourly rates.

[TR MFG]

We are in the midwest and do 3axis mill work, aerospace and molds. We also are a lower than average overhead shop. We aim for $55 and find that this is near the low end. $40/hr IMHO wouldn't be worth it when you can work for someone and make $25hr.

[rickyt]

I started my new shop, I charge 55.00 per hour. I live in the southeast and I know that I am on the low end. The shop I used to work for was 75.00/hr, and some of the shops around charge 100.-120./hr.. I feel the type of work has alot to do with it if 3d mold work charge more, if 5axis charge more, not everyone can do that type of work so you are charging for you knowledge that you have worked so hard to master. A high quality 5axis machine is lot more money than a mini mill. So you have to charge more to pay for the blasted thing. I only do 2-3 axis work right now, and soon going to start lathe work. Good luck with your company if you choose to start one.

[AMCjeepCJ]

I typically let my customers name their target price and then make suggestions, lol, I generally can make up to $1 every 20 seconds cut time and throw setups in for $1 a minute. ($180 an hour & $60 an hour.) I really do calculate by the minute though for what it's worth. (Works out the same.) I also charge different per machine depending on the job. For example I might charge a different hourly rate if I can run multiple machines simultaneously.

If I'm doing production, I routinely charge $60 an hour per machine including saws, this translates to $240+ an hour (not including tooling,) for one person loading two saws and two mills on staggered cycle times. (Work smarter NOT harder.) BTW, Those prices were ALL from the customer approaching me with the price right up front. Granted I don't tell them how fast I really get it done but hey, I didn't want to quote it in the first place~ So far I'm saving them $100,000+ a year per machine(their machines,) so maybe I'm in a unique situation. (I'm sure he lowballed the price he gave me too, lol...)

I personally feel that I can almost always cut something faster than anyone else which equates to more money for me and saves them money if I bid the job.

A good example:

They were paying $700 for a part. They buy me material for $200 and I build it in 3 hours busting my butt. I charge $150 an hour, I'm not going to push my equipment that hard and not up my rate. saves em' $50 per part which adds up fast plus my lead time was 6 weeks quicker than the normal supplier. You HAVE to know your market inside and out!! Research these things and build relationships with everyone!!

Another thing I do is when I do quote is multiply my final figure by a certain number before giving out the price. It varies by the customer and you'll have to figure out your own 'constant' per job type.

You can also charge more if you setup payment plans with the customer. I don't charge net 30, (I get all materials up front and they pay heat treat etc. on delivery) and then charge 20% per month for five months, with 0% interest on my labor. If you want to talk about a selling point, oh my word, that is a deal maker right there. I don't mind telling everyone what I do because too many guys are going out of business needlessly. If you're small and keep your overhead reasonable, you can't go wrong. Another thing, don't ***** out or call your customers every day if they're late. Being courteous goes a long way, most people want to pay but they are at the mercy of their customers too. I find that being respectful and not freaking out helps tremendously. I just tacked on $1,500 to a job I shipped and the guy was cool with it because A.) it was justified and B.) I never ride him about being a few weeks behind on payment.

Another thing, tell everyone everywhere what you do, even waitresses at lunch. I get more leads that way, it's crazy. I just got in touch with a business to make tattoo guns because I told the dude piercing ears that I build one off wheels. (I had one in the truck for a bike show.) Be fearless in self promotion. My standard line is, "I can build ANYTHING." So far I've been able to back it up

Don't be worried about doing freebie work from time to time either. I sometimes do thousands in freebie crap just to get into a new industry. You have to be selective doing this but I'm careful and haven't ever been burned (but only because I'm careful, a few places have tried to screw me and in those cases I covered my bases ahead of time and ended up WAY ahead in the end.)

BTW, you can't afford not to do freebie work or at least reduced labor rates from time to time but be upfront with the companies about what you're up too. Just be honest, admit mistakes when you make them and don't freak when stuff goes wrong because sooner or later it will!!

Finally, just remember what my dad always said, "it's all just a big game anyway" and when you lose money, just learn your lesson and go again.

[lakeside]

Boston area average is $95

[dkowalcz]

$60/hr is typical here in western WA. More for wild aerospace stuff.