truckdoug

iTrader: (25)

Due to some recent events I find myself with a chance to start my own fabrication service. I have worked for myself in the past, but I never really nailed down a price structure for my time since I was either selling a completed work for a set price or I'd bid on a complete project.

With this attempt I hope to help folks with the tricky parts of unconventional swaps. Fabbing hotsides, cold sides, motor mounts, crossmembers. and what not. Suspension stuff for 4x4 and ATV's. I do a lot of repair for moto-x guys ripping chain guides off their swing arms for example.

My question is: How are some of you guys already doing this pricing your labor? Set hourly with minimum hour?

It looks like my area its about $65/hr for simple mig work. $80 for tig work and $125 fabbing from scratch stuff like gusset plates and intercooler mounts.

I am not having a hard time staying busy, but I feel like I underbid myself and never remember to bid in my material and overhead costs.

Talk to me.

MY_2K_Z

iTrader: (1)

I price everything per job, hourly doesn't really work out that well for small business owners honestly. Just price every job for what you'd like to make. If done right it might work out to $200hr instead of 75-100. This is just my experience and in a different field but works that same non the less.

truckdoug

iTrader: (25)

I feel I just dont have quite enough experience to correctly factor in all my costs to bid a complete job. Like I said I overlook lots of overhead.

Thats why I was leaning toward an hourly structure.

Maybe I could do a mix. Some jobs are time-costed others are value based pricing?

I got some bad habits to break for sure! Especially underbidding on stuff that looks fun

MY_2K_Z

iTrader: (1)

I hear you on that, I've finally broken my self if that habit here in the last couple years. Here's another little tip, if there's a job you really don't want to do or your already swamped with work price it high (like double your normal rate) enough that if by some crazy chance they agree to the price it will be worth it. You don't want to just turn down work because that customer may never come back. This method has worked out well for me and has brought my prices higher as a whole and brought in a higher scale customer base. I know I'm saying stuff you probably already know but just things I've learned through the years of being self employed.

showdog75

iTrader: (8)

I price stuff based on the customer. I've got a marina that wears me out on stuff and I've got burned several times so now it's a $100 per hour two hour minimum period. Usually i prefer to give a price for the job so i can bust my *** and make good money, that is usually a win win. Depends on the customer and what they need done.

epfatboy

iTrader: (3)

Price by job here as well.

Your gonna make mistakes, time and parts become the first thing you'll get right. Overhead is a different beast all together but if your honest with yourself and stick it out you'll get there.

Take the time to write down what you think AND write down the actual, you'll quickly find your gaps.

Do not forget re-work/breakage I'm sure you do good work but no one is perfect so be sure to " spread the wealth" of this overhead cost as well.

truckdoug

iTrader: (25)

Thank you! This all great stuff guys. It's one think to think it, it's another to hear it from those who have been there and done that!

orange88ls1s-dime

Glad to see your taking the plunge
I usually base my pricing structures on the customer
you damn near have to be a psychological profiler to know what and who to say certain things to when it comes to extracting the cash from their wallets
for the first bit I would say go hourly and have 1 hour minimum
make signs up on your wall with how your business is ran , you can be a little more to the point with wording and if someone has an issue during a conversation just point at the signs

biketopia

iTrader: (5)

Don't forget stuff like storage fee's on vehicles for when work is completed! Sounds like you've gotten some good advice here. I do a lot of side work for friends and family (I'm a mechanic) so when I price out a job on things other than like the staples of oil changes and brakes, I go by book time and charge $60 an hour, dealers are up around $150 and hour and most shops around here are in the $100 range. Doesn't matter if I finish the 8 hour job in 5, your paying me 8, just like you would at any other shop. You get burned if try to cut everyone a break, they are paying you for your skill set, your tools, your time, etc, don't let any one take advantage of it, been there, done that, not fun. If someone gets butt hurt over a price let them go elsewhere, sounds like you have plenty of work to move on to the next. Don't forget to make money on parts and supplies, when I'm fronting the money for your timing belt job and have a couple hundred sitting on my CC I'm not here to be your interest free loan. I get parts at cost through my vendors, set up accounts to get supplies cheaper than Joe blow can get them for, then mark em up 10, 15, 20+% so you're making money on both sides, to cover the day to day expenses like power, and consumables, and your trips to the store to get material. Plus having accounts with your vendors, they will be able to easily find past invoices and keep track of what you're spending what on.

truckdoug

iTrader: (25)

Thats a good idea. I hadn't thought of approaching anyone for a vendor discount. Thanks man, thats going on the list! The about of 3" cold side pipe I'm buying I ought invest in aluminum stocks!

Right now I'm just trying to keep work coming in. Getting some ally and SS tabs made wth my logo to put on cold sides and down pipes. Filing for LLC status and getting quotes on insurance.

And yesterday my auto-dimmer hood crapped out after many years of faithful service

G Atsma

And then Doug REALLY saw the light.....

biketopia

iTrader: (5)

No problem, hope it helps out! Good idea on the SS tabs for you to put your "stamp" on products for everyone to know who did it!!

truckdoug

iTrader: (25)

loool man i havent had arc-eye since i was a young pup but I can still remember how awful the next 3 days were. I am scared now to the point I cant help but shield my eyes when watching people weld on TV hahah

biketopia

iTrader: (5)

That sand in the eye feeling that never goes away is just so much fun right??

truckdoug

iTrader: (25)

How much liability insurance coverage are you guys carrying? Do you ask customers sign waivers? I'm concerned about doing suspension mods to 4x4's and rally cross cars and being held liable when someone does something stupid.

My DLLC is formed, business license paid for and I got stuff coming and going. Already need more room lol.

G Atsma

Just say- This job carries an Oklahoma warranty. If it busts into two pieces, you own both parts. And if you bust your butt using it, it's still yours. LOL

biketopia

iTrader: (5)

The insurance amount, I'm not sure of but you can never have too much available coverage from what I've seen from friends who've had to get insurance involved. But the waiver, since you're doing this as a legit business I would absolutely spell out the terms of any guarantee you offer and have them sign when dropping off work. Go by some shops and ask to fill out a ticket or ask to read their release to get an idea of what they have in it.

truckdoug

iTrader: (25)

OMG i'm getting that on a sign for the shop !

G Atsma

Glad I could help!
Also this-
Labor rates-
Basic- $20/hr
If you watch- $30/hr
If you help- $40/hr
If you point and laugh- $60/hr

truckdoug

iTrader: (25)

Looks like liability runs about $50-$80/month depending on how much coverage I want to carry. That's really not bad considering I put on a trailer hitch yesterday for some people who pretty clearly did not intend to wire their light to the trailer *yikes*