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I have about got my truck set up. Ranger 10,000, Oxy/Acet. cutting outfit and bottles, tool boxes and hand tools. I want to do repair type welding and some fab. work. I have talked to several people around about what to charge. The guy at the local welding supply shop was telling me that him and his brother used to have a trailer rig and did odd jobs on the weekend. He told me that they charged $65 per hr. I was considering $40-$45 per hr until I talked to him. He said at that price I would be way under pricing myself. What would some of you start out charging to build a small buisness. I also have a medium sized lathe and hope to get my milling machine with in the next 2-3 months. I will also be able to do some machine work. This buisness will be a work in progress, I am able to build it slowly. I work full time as a paramadic on 24 hr. shifts, so I have a lot of off days to build my buisness. My plans are to build this buisness, if possible, into a full fab. and machine shop. When I get ready to leave the ambulance in 5-10 years I can have a full buisness to step back into. I would appreciate any help or input.
Reply:Sounds a little low to me as well. I've heard of a guy here in Atl who did food grade welding and he charged well North of that as I recall. He had plenty of welding certs however
Reply:It's all where you are located. In my area $40-$50 per hour is about max. Also depends on other factors as well as if you are doing specialty work, etc... You do not want to charge to much, and you do not want a reputation of charging to little. Find out what the average is and stay around it. Do good work at a fair price, and live up to what you say, and you will do fine.I'm a Lover, Fighter, Wild horse Rider, and a pretty good welding man......
Reply:Hammack said it pretty well. Its what the area will bear. I get $60.00 and am a little low. I also do some piece work that most always comes out above the hourly rate, but I bust my azz to do it. Call other fab shops and ask them what they charge. Most won't like it, but they should tell you the truth. Some get hourly rate + $1.00 a mile. I don't. Just the hourly rate to travel. If I can bill 8 hours in a day, its a great day no matter what I am doing. Figure YOUR cost. Go from there.If you work cheap, there are some problems. 1. It will be expected of you2. Some will take advantage of you3. You will get less respect because you have less confidence in your self4. Its hard to charge more after 3 or 4 jobs for the same customer5. You HAVE to make a living. If you don't charge enough, its back to the 24 hour shifts.If you are good, most won't mind paying a good price for a good job.If you are really good, dependable, straight, and up front with the customers (read no BS), they won't care how much you charge.If you do a good quality job and charge the going rate for your area, you are giving the customer a good deal.There are a lot of half azzed weldors out there. The people that hire weldors usually know the difference.Last july I raised my rate from $54 to $60. It was if no one knew the difference. This July it goes up to $62.00Best of luckDavidLast edited by David R; 03-19-2008 at 11:25 PM.Real world weldin. When I grow up I want to be a tig weldor.
Reply:Thanks for the input guys. I think I will do some research into what others in the area actually charge and go from there.
Reply:David R said it perfectly.There are a lot of people out there that charge what the others in the area charge. If you are truly worth it, you can charge what you need to survive. Some others charge what the market will bare and the bear market may eat them.This part may not be allowed, but here it is. Ellen Rohr has written some books on exactly your dilemma. She has helped me and many others.http://www.barebonesbiz.com/I know too many people in my industry and others that have gone under(one very badly and got sent to jail) because they didn't think. Don't fall into that trap.Good luck.
Reply:I charge 65.00 per hour with a 3 hour minimum for on site welding/repair work and I still think I am a little low. Its not worth it to me to go on a job thats less that.Like every one said it depends on your area.Here in houston, all fab/welding shops are busy and I have some that give me the jobs that they turn down. Small ones to them big ones to me!BTS Welding
Reply:As my old daddy used to say "Let your conscious be your guide"TonyC
Reply:I am charging in excess $100.00 per hour for welder machine and consumables add fabricating and it increases as I bring in more tools. I have several trucks and crews all booked a month out some more. The question is a math question not an emotional one.1) cost of licensing, insurance, bonding. = X2) cost consumables used per hour = X3) cost of maintenance pro rated per hour of use =X 4) cost of employee benefits (you are the employee) per hour =XI am sure you get the idea find out your expenses add a profit and you arrive at a cost per hour to charge.Next big question will any body buy your service at that level?Remember all you are really doing is a service, just like a waiter, parking valet , or the kid mowing the grass. Any fool can learn to weld not everybody can run a business. I cover all repeat all my overhead by selling materials and I make my money from labor. Jimmy
Reply:I couldnt agree more... now pretend your starving... you find job quickly... I know when I dont have money I always have a smoke somewhere... funny...conclusion:1. dont sell cheap but at a right comfortable price for both party... pay the bill and have a good recommendation to other potential customer from the guy.2. calculate and think before accepting the job... check out the guy and the spec of the job. Maybe the guy thought every weld will be X-rayed or something.3. Get a fat down payment or dont even thinkin to move a finger...4. sell the image of a new machine for his job and people would think its worth it...(Customer always have this cute idea of new machine makes good welding)5. Hold your breath till you glow in pink... good luck my friend...Back to my cageLast edited by Mandau; 03-21-2008 at 02:43 PM.Unit in my fab shop dept:my good hand and team that trust me...A lone welder make art... a village full of welder make Miracles...
Reply:I have simple AWS D1.1 certs and charge $65.00hr from the time I leave my place to the end of the job. I don't charge for consumables, but, I do charge for metal and other materials (hinges, blah, blah). If the job is within 25.0 miles, I eat the ride home. If over that, I add a few bucks and make that clear when I take the call. 1 hour min. Be sure that you make your charges clear up front (be nice). I got burned once by some d-bag and had to threaten to cut my work off of his trailer unless he paid. As you probably know, invaribly, the job is always bigger than they say on the phone. I've heard many times (the old heads around this forum can probably verify this) that, "It just needs a little tack," and end up working several hours on a job. People who call you probably aren't welders and are just going off what they believe when they call. Oh yeah, look into product liability insurance......If it rolls, you can get into big sh*t if it breaks.........just my .02Yeah, yeah, I know you are a weldor too. But, are you a good one?
Reply:http://www.millerwelds.com/education...Book_Chpt9.pdfI find this useful... may help your calculation too... go grab it sir...Unit in my fab shop dept:my good hand and team that trust me...A lone welder make art... a village full of welder make Miracles...
Reply:Understanding Key Welding Business Issues And Turning Them into Opportunitieshttp://www.millerwelds.com/education...rticle102.htmlRenting the Right Welding Equipmenthttp://www.millerwelds.com/education...articles7.htmldont know if these help...Unit in my fab shop dept:my good hand and team that trust me...A lone welder make art... a village full of welder make Miracles...
Reply:Originally Posted by westlawn5554xUnderstanding Key Welding Business Issues And Turning Them into Opportunitieshttp://www.millerwelds.com/education...rticle102.htmlRenting the Right Welding Equipmenthttp://www.millerwelds.com/education...articles7.htmldont know if these help...
Reply:I guess it depend on the customer deadline schedule if he has one...Faster, emergency mean cost more... its mean you'll forget to eat properly, cancelled date with new girls on the block and etc... huge scarifice... You can split the job and have another person with rig set doing under you... renting and hiring another person is not advisable... he may not used to the rented unit and the unit condition is different from the maintance one.Usually we have a club sandwich deal with a few person to tackle a huge job... 4 company. These relation need to be deal far before taking the job... know the person in and out and he better understand what is friend and what is business...Unit in my fab shop dept:my good hand and team that trust me...A lone welder make art... a village full of welder make Miracles...
Reply:so how is your solution? I wouldnt mind listen to it... or PM me... Unit in my fab shop dept:my good hand and team that trust me...A lone welder make art... a village full of welder make Miracles...
Reply:Well I have done a couple of small jobs priced at 55 per hr. Just feeling things out. I can adjust from there. Have had a couple of other people talk to me about things they want done but no commitments. Had a small set back called gall bladder surgery. Been down for about 2 weeks. Just started back to school to pick up some TIG experience. I have never done any TIG, just MIG and Stick. Thanks for all the advice, I am just taking things one day at a time and building slowly. I'm in no big hurry.
Reply:Be honest about what you can do in an hour. Will you be able to do in an hour the same amount that these other older and more experienced men can do? Probably not. They have years of working on things that you may have no knowledge of yet, and layout and setup skills that only experience will give you.So start a little lower than top weldors and you can catch up when you think your worth it. You dont want people to start thinking they are not getting thier moneys worth. Just my thoughts, Bob
Reply:Originally Posted by BobBe honest about what you can do in an hour. Will you be able to do in an hour the same amount that these other older and more experienced men can do? Probably not. They have years of working on things that you may have no knowledge of yet, and layout and setup skills that only experience will give you.So start a little lower than top weldors and you can catch up when you think your worth it. You dont want people to start thinking they are not getting thier moneys worth. Just my thoughts, Bob
Reply:I am not a professional welder, but do have a successful service business. When setting your prices you need to keep in mind a few things.1. Eventually, you do not want to be the one doing all of the work. Charge enough to make it profitable, even at the outset, to have someone else do the work. When you are welding, you are just an employee. Remember that and set that money aside for savings, or what ever. You want to get used to paying out that money so that it is not a shock to your system the first time you write a check.2. Pay a fair wage. If you would be hard pressed to do the work as an employee at that price, why in the world would you want an employee that was willing to do it at that price or less? And on another thought, do you really want an employee that is worth $10 an hour? That means constant babysitting and fixing mistakes. Get an employee, train them, turn them loose, and retrain them. You do not want calls like the one I just got that was a $27k mistake that is not covered by insurance because they said it was a training issue. 3. Keep in mind that even though you think that you are paying an employee $15 or $20 an hour, just their wage expenses are about 20% more with FICA match, etc. Then you have to figure in the cost of a truck and other equipment. All told, with all the expenses of running a business, you are looking at a solid $40 an hour to have an employee working for you. Even with a reduction in wage prices, it does not go down that drastically from there. Conversely, you do not want to pay too much either, because it will make it difficult for them to find a job to replace yours when they get terminated, for what ever reason. I like to maintain a spot in the high market rate for employee wages. 4. Consumables and supplies are NEVER, EVER billed at replacement cost. Repeat, NEVER, EVER. You need to get at least 10% over what you paid for them, and I prefer 100% depending on the job. That is part of your profit margin and is money that you can use to grow your business. 5. Do not fall in the trap of I will buy Old trucks and fix them up. You can buy used trucks, but, make sure that they are in excellent repair. Every minute that truck is down, the money clock is ticking. They will break. Keep the breakage to a minimum. If it has 3 different things that break in a month on me, it is sold, and I buy something else. The downtime is not worth it for me, and 12 hours of downtime not working is enough to make a new truck payment, and not have an angry customer because you were not able to show up on time. 6. Keep your wages at a certain percentage. You need to include yourself for wages, for managing your business. Like I said, I am in a different industry, but I keep my wages with all the benefits and perk's at about 25-30% of their Gross a year. Now you will say, that is easy, 25% of $60 is $15 an hour, You forgot FICA and all that stuff. You also forgot about potential wage increases. People like raises. Figure them into your budget as the employee makes you more profitable. There are a ton of other things that I could expound on, but this will get you started. Every reasonable business man knows that there are costs associated with being in business, and many will try and run you out of business by getting to go down on your rates. DON'T DO IT! Charge a fair market rate from the start, perform and return phone calls, and you will be successful. |
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