help on price please

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slauk84
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help on price please

Post by slauk84 »

I made this for a customer and have little to no idea how to price it fairly.
it is 16ga. HR cut out, bent and welded/ cleaned, and the two drop in boxes

Customer supplied the metal.

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Shane Warnick
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Re: help on price please

Post by Shane Warnick »

Unless there is someone here from your area, it wouldn't matter what numbers we came up with, we aren't in your market and so the numbers would just be numbers, with zero relevance to your area and market.

There are several articles in this forum about pricing, how to figure it, etc. You need to know several things, such as how much do you need/want to make per hour? Whats the competition charge? How much are you going to charge for messing with the customers metal? Surely you will charge something, since you didn't make any money on the steel. If you price it right, they don't really save any money supplying the metal, unless they want something from stainless, copper, etc and you don't want to sit on a drop for a year until someone else needs some.

You bring a project like that to me, and it's mild steel, it's cheaper to buy the material from me. I get it cheaper than they can, and then I mark it up. If they go pay full retail, then pay me to unload it, handle it for the job, then reload the drops etc, it would have been cheaper to buy it from me, and all that labor was built into the price of the steel.

Shane
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slauk84
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Re: help on price please

Post by slauk84 »

Thank you Shane
I figured it was worth a shot, I ended up coming up with a price that I think the customer and I both are happy with this time. I need to make, or find a spreadsheet to make this easier for next time.
HaasMetalDesigns
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Re: help on price please

Post by HaasMetalDesigns »

how many hours do you have into it and what do you want for hour that is your price
Shane Warnick
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Re: help on price please

Post by Shane Warnick »

slauk84 wrote:Thank you Shane
I figured it was worth a shot, I ended up coming up with a price that I think the customer and I both are happy with this time. I need to make, or find a spreadsheet to make this easier for next time.
Really way too many variables for us to just give you a price, and I personally feel there is more to it than just hours x $ equals a price. Consumables, specialty tools (even a welding machine or grinder is a specialty tool), etc etc.

Best pricing advice I can give you is not to price it where it's something YOU would pay to get it built. You don't pay for stuff like that, you build it, and are equipped to do so. Therefore, you will ALWAYS leave money on the table if you price it where it would have to be if you were the buyer.

Always remember, it's not what it COST you to be able to build something, it's what it cost you TO BE ABLE to build it. Whether that's tools, shop space, a cnc table, electricity, or even KNOWLEDGE, all that stuff is worth money. I have a ton of people give me the whole "I can make that I have a torch" run around, I just smile, tell them ok and go back to work. They always come back.

I have only found one person I cannot compete with fairly on price. I can never beat the guy that is cutting on someone else's table (laser, plasma, or waterjet) on someone else's time ( he is already at work) and using someone else's material ( cutting during lunch, on Saturday etc). I can usually beat them on quality and service, but never on price, and I am ok with that because I am making a damn fine living and I have no interest in working for free. I have had plenty of practice and experience, and I'm not looking for either if there isn't a profit in it.

Shane
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tnbndr
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Re: help on price please

Post by tnbndr »

I need to make, or find a spreadsheet to make this easier for next time.
There are a couple methods on this forum.
http://plasmaspider.com/viewtopic.php?f=88&t=17569
http://plasmaspider.com/viewtopic.php?f=58&t=18199
http://plasmaspider.com/viewtopic.php?f ... ng#p107826
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beefy
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Re: help on price please

Post by beefy »

Shane Warnick wrote: Always remember, it's not what it COST you to be able to build something, it's what it cost you TO BE ABLE to build it. Whether that's tools, shop space, a cnc table, electricity, or even KNOWLEDGE, all that stuff is worth money. I have a ton of people give me the whole "I can make that I have a torch" run around, I just smile, tell them ok and go back to work. They always come back.

Shane
Dead right Shane.

I've got a custom made grab on my little excavator. There's not a lot of money in steel but what did it take to create that custom grab and fix it to the excavator.

Creating the general design in my head
3D cad drawing
Cnc plasma cutting
Welding
Machining

I didn't learn all that knowledge or get the tools to create the item for free. They all cost me time in research, learning and practise, and lots of money.

Now with that attachment I can do certain jobs in a 3rd of the time, but guess what:

a). most customers don't even notice what they are getting and how much money I'm saving them (and doing myself out of :? I do hourly hire)
b). they don't think they should pay a little extra for the attachment that saves them money because "it's part of the machine" :shock: :evil: .

Yep customers can be dicks at times and want everything for free. If you ain't desperate don't give it to them.

Keith.
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