Raising rates/Inflation what have you done?

[Houdini]

Just curious of the median.
I haven't raised shop rates since before the virus ($75.00HR) was thinking that since inflation is about 14% in that time
and we have a lot of work and funds, I would raise rates 10% purely to keep more correct with the economy numbers, even though we don't "need" the increase.
What are others doing?

 

[Booze Daily]

I raised my shop rate 8%. I've also had to requote some jobs that I've done in the past to reflect higher matl costs.
So far everyone is ok with it.

 

[BoxcarPete]

You needed to do this last year. Things are settling down now, and purchasing agents are starting to lose their "oh boy, another price increase" attitude.

 

[DanASM]

I went up 50% across the board. Over 2 price increases. I have been able to offer savings through efficiancies, so the end price isnt 50% higher.

If your prices arent at least 30% higher than pre pandemic, then your leaving some on the table for someone else.

 

[cnctoolcat]

A shop can save money on the other end too, by minimizing expenses and overhead where possible.

Rag and rug service...? Still paying to have oil changed in forklift...? Efficient LED lights in the shop throughout...? Still running that tired, expensive shop heat...?

Negotiate tough but fair with your material suppliers. We're over the peak of the madness, and materials are getting back in stock.

Ask your tooling salesman/suppliers to let you in on any promotions, because their competition is offering to let you in.

But yes, I would imagine shop rates are up 20-30% industry-wide over the last three years.

I think part of our industry's recent pricing power is the lack of new machine shops coming online in the United States. In my greater region I know of only one (recently started by a friend) in the last decade or two. The younger generation just isn't interested I guess...?

 

[CarbideBob]

Inflation has been so low for so long that many do not remember the days when even McMaster raised their prices every two weeks or so.

 

[DouglasJRizzo]

My shop rate is due to be increased in June, by 10%. Mostly the material costs have been acknowledged and accepted by my customers.