What's your $shop rate$ these days? - Page 3
Close
Login to Your Account
Page 3 of 5 FirstFirst 12345 LastLast
Results 41 to 60 of 90
  1. #41
    Join Date
    Oct 2010
    Location
    Maryland- USA
    Posts
    3,365
    Post Thanks / Like
    Likes (Given)
    1933
    Likes (Received)
    2137

    Default

    Quote Originally Posted by dkmc View Post
    Just curious on where shop rates are these days.
    I'm at $75 base rate, mostly manual machining, small quantities. Includes some design and repair work as well. A bit of Fab and welding too. Mostly anything interesting I can make my rate (or better) on. I'm trying to get an idea if that's an average for a small 1-2 man shop in the north east. But it'd be interesting to hear from others in other parts of the US as well. Have you managed to raise your rate in the last 5 years, or have you had to lower it? Or has it been the same for ? years?
    That’s about where I am at- I have been gradually moving up.
    I have another 8k I need to put into the shop this month for general upgrade so it feels somewhat like I’m taking everything coming in and pushing it right back out the door.

  2. #42
    Join Date
    Apr 2019
    Country
    UNITED STATES
    State/Province
    Arkansas
    Posts
    359
    Post Thanks / Like
    Likes (Given)
    50
    Likes (Received)
    160

    Default

    I feel you there. We just bought a new building on 3 acres, paid to install 3 phase, wiring, moved everything over and then to top it off.... $1500 landscape bill to tidy up the place.

  3. #43
    Join Date
    Apr 2007
    Location
    Pillager, MN
    Posts
    5,720
    Post Thanks / Like
    Likes (Given)
    1867
    Likes (Received)
    5201

    Default

    Shop rate?.........eh. Depends on the customer and depends on the parts. Everything and everyone has a PITA factor +/- $$$$.

    I have a coupla customers whose "shop" rates have decreased for them and increased profit for me. I have been making their parts for so long that everything runs like clockwork. Programs, tooling, fixtures, inspection, packaging is so well dialed in that I'm making pretty darn good coin. Went from let's say $70/hr to makin' $100/hr. The costumer is happy cuz their pricing hasn't changed in years, essentially giving them a price reduction.

    Also, as I type this, 2 lathes are chuggin away on simple one off parts. Each machine runs for 40 minutes. I'm not chargin' full "shop rate" for these parts. Open tolerances, go right into the box, send off the invoice and get paid on time.....................very low PITA factor. ................Wish they were all like that...........................

  4. #44
    Join Date
    Aug 2010
    Location
    Medina OH
    Posts
    1,775
    Post Thanks / Like
    Likes (Given)
    130
    Likes (Received)
    757

    Default

    Quote Originally Posted by Pariel View Post
    I've never had a customer offer T&M for machining work (although I've seen it for repair work -- and let me tell you I've never seen it work out for any customer, ever).
    I do all kinds of T&M work, and as such I have had lots of customers ask my hourly rate. It almost always works out for customers, because, as I explain to them, if I bid the job, I have to bid high enough to be SURE I will make money. If I do not have to quote, I am locked into the work at a given price, I do not waste time quoting, and typically it winds up being cheaper for the customer. NOT ALWAYS... but typically.

    Quote Originally Posted by DanASM View Post
    Brown and Sharpe Cam automatics.

    $36/hr (penny/sec) for free machining metals
    $40-$45/hr for medium carbon steels
    $45-$50/hr for stainless

    Rates and overhead have not changed in 25 years.

    I am busier than ever.
    Hmm.... need to get your business card... though I am sure I do not have near high enough volumes!

  5. #45
    Join Date
    Jul 2006
    Country
    UNITED STATES
    State/Province
    Arizona
    Posts
    4,589
    Post Thanks / Like
    Likes (Given)
    18419
    Likes (Received)
    4306

    Default

    Quote Originally Posted by DanASM View Post
    Brown and Sharpe Cam automatics.

    $36/hr (penny/sec) for free machining metals
    $40-$45/hr for medium carbon steels
    $45-$50/hr for stainless

    Rates and overhead have not changed in 25 years.

    I am busier than ever.
    Please explain your logic. If your rates have not changed in 25 years to keep up with inflation, then you are making less money every year.

    $50 back in 1994 equals $86 today when adjusted for inflation.

    You are busier than ever because it seems you do not understand this concept.

  6. #46
    Join Date
    Apr 2005
    Location
    Brandon, MS
    Posts
    817
    Post Thanks / Like
    Likes (Given)
    114
    Likes (Received)
    168

    Default

    Quote Originally Posted by Philabuster View Post
    Please explain your logic. If your rates have not changed in 25 years to keep up with inflation, then you are making less money every year.

    $50 back in 1994 equals $86 today when adjusted for inflation.

    You are busier than ever because it seems you do not understand this concept.
    That's not necessarily true. Some people get more efficient.

    His hourly rate is a "gross" rate. Matters not what that number is. It does matter that the "gross" rate is high enough where the "net" rate consistently increases.

  7. Likes wheelieking71, DanASM liked this post
  8. #47
    Join Date
    Oct 2010
    Location
    MO, USA
    Posts
    298
    Post Thanks / Like
    Likes (Given)
    145
    Likes (Received)
    95

    Default

    Quote Originally Posted by as9100d View Post
    $300 an hour here.
    Holy Crap. Are you the only shop in the state or what?

  9. Likes barbter liked this post
  10. #48
    Join Date
    Mar 2006
    Country
    PHILIPPINES
    Posts
    2,431
    Post Thanks / Like
    Likes (Given)
    525
    Likes (Received)
    761

    Default

    Quote Originally Posted by CatMan View Post
    That's not necessarily true. Some people get more efficient.

    His hourly rate is a "gross" rate. Matters not what that number is. It does matter that the "gross" rate is high enough where the "net" rate consistently increases.

    Not to mention in 25 years he probably has collected every cam possible as well as setting up in his sleep. And while times have been changing and shops converting over to cnc Swiss @ over $100k increasing their overhead his little $500 B&S pays for itself daily. And, FWIW, there is not many jobs a Swiss can compete with a cam machine.

    B&S and Acme Gridley are the original cash machines.

  11. Likes DanASM liked this post
  12. #49
    Join Date
    Jan 2013
    Location
    Gilbert, AZ
    Posts
    5,823
    Post Thanks / Like
    Likes (Given)
    7310
    Likes (Received)
    7423

    Default

    Quote Originally Posted by CatMan View Post
    That's not necessarily true. Some people get more efficient.

    His hourly rate is a "gross" rate. Matters not what that number is. It does matter that the "gross" rate is high enough where the "net" rate consistently increases.
    Correct. As long as you run out of month, long before you run out of money, its just an arbitrary number.

  13. Likes e-fishin-c, DanASM liked this post
  14. #50
    Join Date
    Apr 2005
    Location
    Beaverdam, Virginia
    Posts
    7,354
    Post Thanks / Like
    Likes (Given)
    644
    Likes (Received)
    3466

    Default

    Quote Originally Posted by DanASM View Post
    Brown and Sharpe Cam automatics.

    $36/hr (penny/sec) for free machining metals
    $40-$45/hr for medium carbon steels
    $45-$50/hr for stainless

    Rates and overhead have not changed in 25 years.

    I am busier than ever.
    Quote Originally Posted by Philabuster View Post
    Please explain your logic. If your rates have not changed in 25 years to keep up with inflation, then you are making less money every year.

    $50 back in 1994 equals $86 today when adjusted for inflation.

    You are busier than ever because it seems you do not understand this concept.
    He could be more efficient, 25 years ago a lot of cam auto shops were still using brazed carbide stick tools that get nowhere near the life of insert tooling. He could have added multi bar loaders. Also he could have 1,000s of paid for cam sets that he charged out to other jobs. There could be a lot of factors where his overhead has went way down.

  15. Likes DanASM liked this post
  16. #51
    Join Date
    Apr 2019
    Country
    UNITED STATES
    State/Province
    Arkansas
    Posts
    359
    Post Thanks / Like
    Likes (Given)
    50
    Likes (Received)
    160

    Default

    Quote Originally Posted by gear cutter View Post
    Holy Crap. Are you the only shop in the state or what?
    Aerospace is the number one export here, lots of shops. We are really effecient, run lights on on the screw machines and pay employees more than other shops. Our marins are very small but everyone gets paid well to do the best work they can.

  17. #52
    Join Date
    May 2009
    Location
    San Luis Obispo, CA
    Posts
    19
    Post Thanks / Like
    Likes (Given)
    1
    Likes (Received)
    1

    Default

    I run a fabrication shop for architectural stuff, like handrails and gates, I'm actually a building contractor. I basically never do T&M work, always a bid. When I am working up my bids, I calculate based on estimated time in man hours at $120/hour, and double the material. I am not rich, far from it in fact. I don't understand how y'alls numbers are so low. $40 per hour would not cover the salary of one employee, much less the whole shop. What am i missing?

  18. Likes GM liked this post
  19. #53
    Join Date
    Apr 2019
    Country
    UNITED STATES
    State/Province
    Arkansas
    Posts
    359
    Post Thanks / Like
    Likes (Given)
    50
    Likes (Received)
    160

    Default

    Quote Originally Posted by fortyonethirty View Post
    I run a fabrication shop for architectural stuff, like handrails and gates, I'm actually a building contractor. I basically never do T&M work, always a bid. When I am working up my bids, I calculate based on estimated time in man hours at $120/hour, and double the material. I am not rich, far from it in fact. I don't understand how y'alls numbers are so low. $40 per hour would not cover the salary of one employee, much less the whole shop. What am i missing?
    Not that my rate is that low but, there are folks that run automatic machines and can have 4-5 machines for 1 operator.

  20. #54
    Join Date
    Oct 2010
    Location
    MO, USA
    Posts
    298
    Post Thanks / Like
    Likes (Given)
    145
    Likes (Received)
    95

    Default

    Quote Originally Posted by as9100d View Post
    Aerospace is the number one export here, lots of shops. We are really effecient, run lights on on the screw machines and pay employees more than other shops. Our marins are very small but everyone gets paid well to do the best work they can.
    I met a guy a while back that told me "the Govt. doesn't care what things cost. they aren't spending their own money" He always said his margins were low. He was living large. He ans his business partner sold their shop a long while back and he's still living large. I must be doing something wrong.

  21. #55
    Join Date
    May 2009
    Location
    San Luis Obispo, CA
    Posts
    19
    Post Thanks / Like
    Likes (Given)
    1
    Likes (Received)
    1

    Default

    Quote Originally Posted by as9100d View Post
    Not that my rate is that low but, there are folks that run automatic machines and can have 4-5 machines for 1 operator.
    So, are you saying that the $40/hour is per machine?

  22. #56
    Join Date
    Nov 2014
    Country
    UNITED STATES
    State/Province
    Florida
    Posts
    3,639
    Post Thanks / Like
    Likes (Given)
    1517
    Likes (Received)
    1726

    Default

    Quote Originally Posted by fortyonethirty View Post
    So, are you saying that the $40/hour is per machine?
    Yes, pretty much. Think about it like this. You quote 3 widgets at 2 hours each = $240

    BUT each widget can be run on a different machine. Setup guy starts first part, moves to machine #2 sets that one, etc... You still only get $240, but you have made that in 2 hours (yes oversimplified).

  23. Likes wheelieking71 liked this post
  24. #57
    Join Date
    Apr 2005
    Location
    Beaverdam, Virginia
    Posts
    7,354
    Post Thanks / Like
    Likes (Given)
    644
    Likes (Received)
    3466

    Default

    Quote Originally Posted by as9100d View Post
    Not that my rate is that low but, there are folks that run automatic machines and can have 4-5 machines for 1 operator.
    I used to run 6 often just to see if I could do it when I would work weekend overtime for the man. Those were Swiss cam autos and CNCs that only had single bar gravity feeders. I would always test my limits as I knew I eventually would have my own shop. Of course you can only run that many efficiently if you are running easy to machine materials.

  25. Likes DanASM liked this post
  26. #58
    Join Date
    Apr 2019
    Country
    UNITED STATES
    State/Province
    Arkansas
    Posts
    359
    Post Thanks / Like
    Likes (Given)
    50
    Likes (Received)
    160

    Default

    Quote Originally Posted by gear cutter View Post
    I met a guy a while back that told me "the Govt. doesn't care what things cost. they aren't spending their own money" He always said his margins were low. He was living large. He ans his business partner sold their shop a long while back and he's still living large. I must be doing something wrong.
    If you have higher margins and not a constant stream of work it's one thing. Having so much work that you're literally booked a year or more in advance and you don't buy excess machines and run off that back order with lower margins is another.

    A lot of the margin is ate up with paperwork, quality control, bag and tag and custom stamps for part numbers or using the videojet to print numbers on parts.

  27. Likes Philabuster liked this post
  28. #59
    Join Date
    Mar 2019
    Country
    UNITED STATES
    State/Province
    Massachusetts
    Posts
    78
    Post Thanks / Like
    Likes (Given)
    23
    Likes (Received)
    50

    Default

    Quote Originally Posted by Philabuster View Post
    Please explain your logic. If your rates have not changed in 25 years to keep up with inflation, then you are making less money every year.

    $50 back in 1994 equals $86 today when adjusted for inflation.

    You are busier than ever because it seems you do not understand this concept.

    I do not have debt. House was paid off 20 years ago. Cars are paid for. My machines do not break. Bought out Greenfield Tap and Die's tool crib 20 years ago and still find pans of tooling that are new old stock.

    I can run 4-5 machines at 36/hr (144-180/hr). Only had 1 set of cams made in 28 years. Have thousands on the wall that work just fine with little to no alterations. I am making a cam right now for a job coming back from China. Making it myself with no out of pocket cost.

    Wages were $5/hr when I was a little kid. It is now $15/hr. I make most of my own tooling from old stock.

    The only thing that has gone up that I buy regularly is fast food prices and gas. I do not see any increase in what I buy at the grocery store. Gas is not even thought of with 40mpg car and 5 min from the shop.

    Jobs repeat and stay on machines so when they come back around I just load the machine up and make sure tools are sharp. 12L14 can run from monday morning to friday afternoon with downtime only to load another 12' bar.

    When the recession hit it sucked pretty bad but we have no debt so we just waited for it to come back around. I am having my best year in 28 years and have never run a CNC in my life. I do want one this year though and my customers want me to have one too. Wont be financing one either.

    Never went to college. At 18 I asked many questions on how I would be able to pay back student loans after college. No one could tell me how I would put cash in my pocket after college. Couldnt get loans unless went to school full time. Couldnt work if I went to school full time. Made the decision then not to go to college. I now learn everything I want from youtube for just the cost of internet.

    I sleep like a baby and dont have to do anything I do not want to do in life. Never have to worry about where my next meal comes from.

    Although I am always open to suggestions especially if they are good ones. But I never have to do what someone tells me to do and that is a great feeling.

  29. #60
    Join Date
    Oct 2005
    Country
    UNITED STATES
    State/Province
    Pennsylvania
    Posts
    14,882
    Post Thanks / Like

    Default

    Quote Originally Posted by gear cutter View Post
    I met a guy a while back that told me "the Govt. doesn't care what things cost. they aren't spending their own money" He always said his margins were low. He was living large. He ans his business partner sold their shop a long while back and he's still living large. I must be doing something wrong.
    Don't walk around with $50 bills hanging out of your pockets, unless your trolling/dredging for something.


Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •