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| Jonny:
--- Quote from: sparky961 on July 27, 2012, 12:58:27 PM ---I don't believe that the few people out there willing to work below the going rate have the capacity to take business away from larger shops. There is a staggering amount of work to be done out there. --- End quote --- What no one has picked up upon is theres a massive difference between hobby/model engineering and production. What you have to base the costing on is how long would it take for much bigger suitable machinery and equipment to do the job. IE if only have a small machine it could well take 60 mins to do a part, decent machine could well be seconds at £50+/hr, thats the difference. Therefore have to go in at market price or walk away. To prove a point i took an order for Australia last week, posted off yesterday. 5 axis cnc would have taken 16 mins for one part, doing by repetitive multi operations manually i planned on 40 to 50 mins each at a much lesser hourly rate, i dont have overheads like rented buildings or £300,000 plus tooling to recoup! What it boils down to is based on £50/hr could well be £70/hr but i sold for 66p each less than could have done out for and thus a loss. As it was i can now have three weeks off next month laughing all the way to the bank. About time i had some smooth work. Unless specifically asked by customer you have to go in at the price structure of how it would be made. So as £25/hr mentioned earlier, way too high with no overheads i feel it should be closer to £15. Proper legit engineering companies charge from £30/hr, thats roughly £10 to the actual person doing the job, the rest is overheads and ancilliary items. Another way of looking upon it is charge your £25/hr each part takes 50 mins plus materials so looking at £24.83 each. Engineering co at £50/hr works out at £4.83 each because they make in one minute, call it 2 mins so £5.66 each. |
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