"Shop" Rates - What to Charge per hr?

[Rokcrler]

Re:

I use this app to track time and expenses for builds
https://play.google.com/store/apps/details?id=com.spotlightsix.timeclockbasic

Consumables cannot always be factored in to the shop rate as you never know exactly how much stuff needs to be cut off/cleaned up/degreased/etc

Cutoff/grinding/flap wheels cost, brake cleaner, rags, oil dry, zip ties, hose clamps, thread tape, locktite, gasket maker/silicone, hole saws all add up.

Being able to show invoice on time and materials used is good for both sides.

"Shop" or shop rates vary and always will. I do it for fun and enjoyment although at times it is aggregating.

One thing to remember when pricing, specialty tools cost you money, knowledge cost you time invested in learning the trade.

Most folks don't realize the time that goes into stuff like dimples, bead rolling, rolled tubing or tube notching & bending, etc.

Just some insight

 

[bgredjeep]

I had a buddy do some major work on my Jeep out of his home based shop. It's side work he does in his own time. Here's my thoughts from working through this on the customer side.

First thought, I (the client) prefer to source my own parts. I'll consult him to make sure I'm getting what he wants/needs for the project, but I'm not going to waste his time and put him out the money sourcing parts for me. When you actually make it your business, that probably changes. I've recently hit the junk yard with him looking for some parts to be used on another project he's got in the shop, and that's a PITA IMO, and not a good use of a fabricator's time and skills.

For price, we discussed in detail what I wanted. He worked up an estimate on the work, and broke it down by major components (cage work, trans rebuild, etc.). I agreed with his estimate and we he went to it. I helped where possible with the grunt work, anywhere an extra pair of hands would be useful, etc. I tried to stay out of his way and let him work for the most part.

Beware scope creep. In my case, we ended up doing a lot of little extra "things". Small details and changes here and there that took time and material that probably wasn't considered at the outset of the project. This could be where the "Not to exceed" clause that was mentioned comes into play. In my case, I just told my buddy flat out to charge me what it was worth. That certainly won't always be the case with friends or other, so keep that in mind as a project progresses if you start moving past what was originally discussed. Make sure to revisit the fee in case the customer thinks it's all covered in the estimate.

At the end of my project, we stepped back through everything that was estimated, everything that was done, and the final total (more than the estimate as expected). I stroked a check happy as could be with the outcome. Avoid surprises and I think both sides will come out OK.

The Jeep is currently back with my buddy getting another round of work, and I expect the same positive outcome. I couldn't tell you the hourly rate he charged me, and I won't tell anyone what I paid for the work on my rig. I'll send folks his way and leave that up to him when he estimates work for other customers.

 

[blacksheep10]

Beware scope creep. In my case, we ended up doing a lot of little extra "things". Small details and changes here and there that took time and material that probably wasn't considered at the outset of the project. This could be where the "Not to exceed" clause that was mentioned comes into play. In my case, I just told my buddy flat out to charge me what it was worth. That certainly won't always be the case with friends or other, so keep that in mind as a project progresses if you start moving past what was originally discussed. Make sure to revisit the fee in case the customer thinks it's all covered in the estimate.

constant communication. Scope creep always happens, less so if you've done the exact job you're doing exactly as you're doing it, before. Stuff comes up, make sure all those $50 changes don't just get thrown in and it is a $1500 bill at the end $50 at a time. Can lead to hurt feelings on both sides. So tough on the side, not much easier full time