Billing customers

Suzuki4evr

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Hallo members.

I know most of the members do all of this just for fun and to keep away under their wives feet,but some of us also need to make money doing what we like doing.

My question to you is, how do you bill your customers? Bill per hour or per job or a combination? Because sometimes a per hour rate seems a bit much on SOME jobs and other times it is the other way around. What are your thoughts. .......just for interest sake?
 
people like billing per job since it is a set amount. Of course you need to know how much to bill to make money on the job.
 
Machining jobs start at $75 minimum and TIG welding is $5 a tack $5 an inch, but I dont have a CNC...... yet!
 
Both ways.

I used to do a job (piece work) that was repetitive and largely the same within certain variations of size, material, etc. It came around again and again, and I had it down to a fine line within a few minutes per piece. For that job I billed by the quarter hour, and both I and the customer were happy.

On other things, especially things I'd never done before, I would bill a flat rate for what I expected it should cost if the customer had gone to another place. I recognized that my machines were not all production machines and therefore I would not be able to do it as fast as a production shop. I also recognized that there may be a learning curve to what I was doing, so I allowed for some 'what the heck?' time. And finally, I always kept in mind that I was not having to pay shop overhead, and that whatever I was making was basically keeping me in tools and equipment. My day job paid for all my other regular living.

This may not be your exact situation, and I'm sure there are those that may feel I sold myself short. And maybe I did. But I liked the work, wanted the challenges and the experiences, and I think the customer appreciated my honesty. It worked for a long time, and probably still would if I cared to still do it.

-frank
 
I've just developed a feel for how long stuff takes and generally price the job, I've been machining for some while now though ;-)
 
if i bill a customer- it's $85/hr + materials, flat rate
if it's by the piece, i generally sell if for around double what you could buy it at a store, if it were to exist.
for example, i make small custom bushings for food processing conveyors.
the bushings are not offered in custom OD's by any factory that i'm aware of.
a standard OD bushing may cost about $6, but if i have to make it it will cost the customer $13.50 each
i dial in a turret lathe and make 30 or 40 of them in a couple hours (30 pieces x $13.50 = $405 :grin: )

the customers are stoked because it save them extensive repairs and downtime-
i'm stoked because i get to play with my turret lathe and get paid having fun!!! :grin:
 
Hallo members.

I know most of the members do all of this just for fun and to keep away under their wives feet,but some of us also need to make money doing what we like doing.

My question to you is, how do you bill your customers? Bill per hour or per job or a combination? Because sometimes a per hour rate seems a bit much on SOME jobs and other times it is the other way around. What are your thoughts. .......just for interest sake?
Location is often plays an important role in the cost of such work, if you are located in an area with a good deal of manufacturing there will be many large and small businesses that feed off of the manufacturers, the market sets the price. If you live in rural Nebraska and the nearest machine shop is 150 miles away charge whatever you can get.
 
Since I do this for fun, If I agree to make something for someone, I just ask them to cover the material. The machining I do for my own entertainment.
I made a ramrod with detachable ends that doubles as a cleaning rod for a muzzle loading carbine I sold to a fellow at work. $50 of brass.
I made a set of surf rod holders for my boss. He furnished the materials.
I've made a number of tools for my product assembly (real job) cell. As the Manufacturing Engineer, crazy ideas frequently come to mind. Company-furnished material used. I get to be creative, make improvements and someone else foots the bill..
 
I normally bill by the job at $80 - $150 / hr rate depending on the machine. But some jobs just aren't worth that kind of money, so I just bill what the job is worth. There are a lot of factors that go into calculating the worth of a job. When does the customer need it, who is the customer, is this for commercial use or just somebody that needs it for personal use. Large corporations get charged full price, a mom and pop shop maybe not so much. If I'm doing something for the neighbors then I might do it for a cheeseburger. :)
 
I am a hobby machinist, pure and simple. I have turned down quite a few paying projects, simply because I would rather be working on my own projects. Still, if I was to do paying work, it would likely be $X for the work, $2X if you watch, $3X if you help...
 
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