Estimating How To Charge Your Customers For Labor Part 2
If you are concerned about various over runs in labor or the customer may be prone to making design changes, you may be able to estimate the job based off an hourly charge. In fact that is how many shops operate. The cost of the welding material, of course is not included and that may be a separate estimate, depending upon the customer supplying the welding material or not. But when figuring your hourly wage, examine local competition charges, and set your fee somewhat within that range, to whatever you think that will be satisfactory. Figuring an hourly charge is not hard, and most of that will involve you figuring out what you can live with. Basing your charges off of an hourly rate also can figure in any eventuality with a customer who is wishy-washy in his demands. If you say to the customer, “I’ll do this for 70.00 an hour.” He may be happy to hear that he will not get charged any more than necessary, and it will also put the responsibility of making any changes or overruns in his hands. Keeping up with the time is important, and nowadays relatively easy to do. The issue that arises is that a quote for a total number of hours may be requested. That’s really something learned from experience, but sometimes friendly competitors don’t mind telling you what they’d charge, especially if there’s enough business to go around. Though don’t be surprised if they don’t lend a hand to the new kid on the block the first time you ask.