Quotes for competing against cnc

I've owned a business for 25 years where i have to guess/quote prices. If the materials cost is too much then ask for a partial payment upfront. Material costs. Labor. Misc costs (utilities, insurances, etc.). All are mandatory parts of your quote. Add in profit and then you do not care as to whether you get the job.

Let someone else suffer from underbidding. Or realize someone else has better technique/ equipment. But at least you know when you don't get the job.
 
I really dont have much cost to run the machines right now. I do some of the work for cheap bc then i can get the job get a little money plus i am happy bc we get to play with our machines. As i bet more versed in stuff i would then charge more but for now i think what i charge is well more then fair and i do make money from it (this quoted job anyways).
 
I would suggest always including all costs (even those you don’t think you’re paying) into your bids. For example, if you own your equipment or building factor in what replacement or relocation would be, amortized of course.

When I started my shop I did a survey of similar businesses near by and priced myself competitively with them. I didn’t want customers coming to me because I was cheaper, I’d rather have someone who appreciates the value of the work I do. I also didn’t want to get into a position where I needed to raise prices as I grew.

Undercutting the competition might get you customers now but can also backfire when you find yourself in the position of having to outsource work on a larger job. Better to have friends in the industry IMHO….

John
 
Be careful with customer supplied material. Too many times I was brought material that was way oversize or exactly nominal and wouldn't cleanup within tolerance. Then there's the ones who cut the stock into individual pieces to length. Don't do me any favors.
 
That is why i would prefer to buy the stock bc of the sizing issues. There isnt any machine shops in my area to really compete against. I am also searching for work online which is where this job is from. I cant find work near me.
 
He messaged me and said he is looking into alternative solutions to reduce costs and so i will be continuing to find jobs to do.
 
Depending on where you are located, repair type of machining can make some extra money. Farmer could be a good source or comtractors. With the dealer mark ups so high now, sometimes it's cheaper to make the part. At times down time will pay to have a one off part made.
 
When I started my shop I did a survey of similar businesses near by
I have wondered how one would go about doing this. Is it a phone call to determine their hourly rate? In all of my previous jobs, I just had to show up, sit in the left seat and not crash between points A and B. ;) This quoting thing seems like it would be hard.

As a side note, I have been running my lathe a lot lately for the company that I work part-time for. They pay me a measly $25/hr for running and using my equipment. I did just order $170 worth of inserts on them as a sort of "payment" for use of my machines.
I was told by one our contractors that I should be charging them at least $60/hr.
 
I have wondered how one would go about doing this. Is it a phone call to determine their hourly rate? In all of my previous jobs, I just had to show up, sit in the left seat and not crash between points A and B. ;) This quoting thing seems like it would be hard.

As a side note, I have been running my lathe a lot lately for the company that I work part-time for. They pay me a measly $25/hr for running and using my equipment. I did just order $170 worth of inserts on them as a sort of "payment" for use of my machines.
I was told by one our contractors that I should be charging them at least $60/hr.
When I left my shop, 20 years ago, our shop rate was $55. Probably $100 by now. $25/hr is low wages for a journeyman, not to mention tools, tooling etc.
 
I have wondered how one would go about doing this. Is it a phone call to determine their hourly rate? In all of my previous jobs, I just had to show up, sit in the left seat and not crash between points A and B. ;) This quoting thing seems like it would be hard.

As a side note, I have been running my lathe a lot lately for the company that I work part-time for. They pay me a measly $25/hr for running and using my equipment. I did just order $170 worth of inserts on them as a sort of "payment" for use of my machines.
I was told by one our contractors that I should be charging them at least $60/hr.

Ouch! I use to own a Cessna T210, they offered to pay me regular salary rates for flying. Sure I had a commercial license and all that, but, folks, this puppy burns around 15 gallons an hour in cruise. Just no. And let's talk about insurance. That last one stopped them cold. I think you need to tell them your lathe burns more than $25/hr in parts, maintenance, and electricity. Or get a couple quotes from a few job-shops. Cuz it sounds to me like you're flying that jet and paying for the fuel.
 
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