I've been established as a business for a couple years now, so it's easier for me to determine what my expenses are and what my hourly rates need to be. That said, I did the math and took my average monthly expenses, divided that by 22 working days per month, divided by the number of employees, then by 8 hours per day and came up with about $63/hr in expenses. My typical shop rates are $80/hr, so that makes sense to me.
However, I have some jobs that I've been doing for years now. I just re-evaluated those and came up with them making about $50/hr. They're recurring jobs, pretty simple to do, I just don't charge very much for it. So my question is, when I look at these jobs and see that I'm charging less than my average hourly expenses, does that mean I need to try and raise the price on that job? Or does that average hourly expense not mean anything as it takes all the other job materials into account? I think I just answered my own question, but I'd like to hear some insight on this.
However, I have some jobs that I've been doing for years now. I just re-evaluated those and came up with them making about $50/hr. They're recurring jobs, pretty simple to do, I just don't charge very much for it. So my question is, when I look at these jobs and see that I'm charging less than my average hourly expenses, does that mean I need to try and raise the price on that job? Or does that average hourly expense not mean anything as it takes all the other job materials into account? I think I just answered my own question, but I'd like to hear some insight on this.