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  1. #21
    Join Date
    Oct 2009
    Posts
    14
    I do agree that there are many variables when doing a job, machine down time, scrap and other factors which are too many to mention. Everybody does want to make money, thats why you have your own machine shop and with the right quoting software which will take machine down time, scrap and other variables often forgotten into account you can see if you will be making money or not putting you in a driving seat before you actually take on the job.

  2. #22
    Join Date
    Aug 2008
    Posts
    3
    I do realize the importance of all those variables. We generally use software which allows efficiency factors based on material, machine, etc.

    My point, which was not made very well, is that getting the job does not mean you can make money on it. If you run the job and find that you have to raise the price, and you do, then loose it next time, what does that tell you?

    I do know that I was told in my younger days that if I get more than 10% of what I bid, I'm bidding too cheap.

    We deal with many smaller job shops and find that they all bid things different. To me, it doesn't matter if they quote me a 25 or 75 dollar hourly rate, only if they bid competitively and deliver quality parts on time!

  3. #23
    Join Date
    Mar 2008
    Posts
    375
    what are the softwares you guys are usuing to qoute jobs.
    if you guys dont mind sareing

  4. #24
    Join Date
    Jan 2010
    Posts
    9
    Guys
    I feel your pain . I think we are starting to know what the last dinosours felt like . Hang in there things will get better, remember all the quoting programs are good but experience is the little voice in your head to look it over again.
    punchpressman

  5. #25
    Join Date
    Sep 2009
    Posts
    313
    Quote Originally Posted by punchpressman View Post
    Guys
    I feel your pain . I think we are starting to know what the last dinosours felt like . Hang in there things will get better, remember all the quoting programs are good but experience is the little voice in your head to look it over again.
    punchpressman
    Yeah I have no need for any special quoting software, I can just add up my run time and exc. exc. and calculate. Maybe it's more work doing it that way, but I've done good that way so I'll keep doing it that way.

  6. #26
    Join Date
    Apr 2008
    Posts
    4
    I recently joined Manufacturing Quotes | Connect w/ Manufacturers | Join MFG.com and now to view buyer's drawings/info they're asking to upgrade membership. So you being paid member suggest that it's not worth paying to them, right?

    Cheers

  7. #27
    Join Date
    Apr 2009
    Posts
    9

    What a great Thread

    Good discussion on quoting. As a job shop owner, I quote a number of jobs on a daily basis. I use E2 Shop Systems software for my entire operation, which includes the quoting module. It quantifies all the factors of the quote, streamlines the quoting process for me so I can get my numbers to the customer. If I win the job I just copy the quote to an order. If I re-quote I can look at the details of the process and evaluate my numbers.

  8. #28
    Join Date
    Jul 2010
    Posts
    369
    Hours x shoprate = $$$$$ then add extra for closer Tol. / # of parts
    Yay my own quoting software..:cheers:

  9. #29
    Join Date
    Feb 2011
    Posts
    0
    I have a co2 laser (it will only work on wood / plastic / etc. ) and have been Quoting $60 hr w/out computer/setup time and it has taken over 1 hr computer time on some jobs..... and everybody still keeps trying to beat me down on price...... had one customer ordered 46 pieces of his logo cutout of skateboard grip tape he was charged 2.25 ea, laser time only and he said "i cannot afford to do this" and another customer i made 4x6 corian plaques for him charged $6 ea he was happy but will not pay more (its for our local school) and i supplied the corian (its scraps from a cabinet shop) but i still had to cut / rout /paint / sand and put a keyhole in the back. i work out of my basement. its like wtf don't i deserve to get paid??? just because i work from home i still have costs also.

    just felt the need to go off!

  10. #30
    Join Date
    Jan 2008
    Posts
    449
    Quote Originally Posted by Rjinhull View Post
    I have a co2 laser (it will only work on wood / plastic / etc. ) and have been Quoting $60 hr w/out computer/setup time and it has taken over 1 hr computer time on some jobs..... and everybody still keeps trying to beat me down on price...... had one customer ordered 46 pieces of his logo cutout of skateboard grip tape he was charged 2.25 ea, laser time only and he said "i cannot afford to do this" and another customer i made 4x6 corian plaques for him charged $6 ea he was happy but will not pay more (its for our local school) and i supplied the corian (its scraps from a cabinet shop) but i still had to cut / rout /paint / sand and put a keyhole in the back. i work out of my basement. its like wtf don't i deserve to get paid??? just because i work from home i still have costs also.

    just felt the need to go off!
    Your customers are comparing your prices on small run custom work to the prices for mass produced garbage at Walmart. Have you tried educating them on how making 50 costs way more a unit than 10,000? Have you tired telling them doubling the order will get a price per unit decrease? Also don't tell anyone you have low overhead, they expect you to pass the savings on to them, and not put it in your pocket.

  11. #31
    Join Date
    Apr 2008
    Posts
    204
    I am right there with you with people bidding down prices. I am a shop manager for an acrylics manufacturing place. We have a 5hp cnc 5x10, 100 watt laser 4x4.

    The only thing you can do is figure your expense for the year. Which is optics, hours towards recharging you laser, spindle bearing wear, dessicant, compressor rebuild hours, cleaning supplies, software expenses, coolant etc. Then divide all that into 2080 and that is your hourly rate you have to charge.
    For example, our laser is quoted to run 3500 for the recharge and it should be at 10000 hours. A rebuild on the spindle on the cnc is like 2500 for a certain amount of hours.

    If you charge a 25 dollar setup that should cover optics and misc items. If you are renting a building I could say not to go under 40 an hour or you are paying people to work for them.

    Hope this helps

  12. #32
    Join Date
    Apr 2008
    Posts
    204
    Being that you are in your basement you should have a huge profit margin. I calculated my expense for my cnc stuff at home and at .69 cents an hour I break even. Even if I were to bring the two machines from work home, I would be at less than 5 dollar an hour to break even. Granted that is not including my time, but what better than haven a drink with ear plugs in, so your wife can't hear you and getting paid to do it.

  13. #33
    Join Date
    Jul 2012
    Posts
    0

    In the Customer/Buyer perspective of quoting

    They get multiple quote to the same job and If you quote too high, then they'll think you'll overcharge. On the other hand, if you quoted too low then they'll think you don't know what u'r doing and wouldn't trust the job to you.

    So you just have to quote the price just right.

    Its helps if you can talk them into provide a "target price" instead of beating around the bush.

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