How do you figure hourly rate?

I was asked to do some side work (have full time job) for some people and was curious how you guys figure your hourly rate. I will be doing
some machine work and welding. Im curious how to figure in the amount of electric used, welding rod/wire/75-25 gas, grinding wheels, wire brushes, etc.... I dont want to rape anyone, but I dont want to work for free. Im in the upstate NY area (2 1/2 hours from NYC). Any guidlines you guys could throw my way would really help. Thanks, Craig
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monkers wrote:

For yourself, take the amount you make working for someone else and double it. That accounts for the roof over your head, the benefits, the nonbillable time you spend working (phone calls, estimating, running to the bank, etc.).
For your equipment take the amount it's worth and divide by 20000 (2000 working hours in a year, more or less, and a 10% annual rate on the loans you'd have to have if you bought it all on time).
If welding is like electronics engineering that should work out to about 3x as much as you make per hour working for someone else.
Or, if you're really, really good just charge them up the wazoo and know you're worth it 'cause no one else can solve their problem.
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<grin>
Ken.
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Ken Sterling wrote:

Heh..
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wrote:

That's a good business model, may not always be appropriate for "pickup" jobs. I use a market-based approach: what might the job be worth to the requestor and how willing or eager am I to do it? I charge big corps a lot because they can be such a PITA, do some jobs for much less if I really enjoy them and/ or learn something from them.
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I would charge the customer an hourly rate, plus the cost of supplies. (offer him a receipt if practical) I like Tim's suggestion of double your regular hourly salary.
i
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Keep in mind that you will have to pay a minimum of 33% to the FED Gov't at the end of the year on that money + any state income tax and other taxes. So you need to raise whatever hourly rate you actually want, by at LEAST that much, just to recoup the taxes, SS and FICA.
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Anthony

You can't 'idiot proof' anything....every time you try, they just make
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I charge a plain old $60/hour with a 1/2 hour minimum. Here's how I arrived at that:
$20 to the shop for Equipment, Power, Gas, Rod, Repairs, etc $15 to IRS and State sales tax (I don't charge extra for it, but I claim it) $25 to me, cuz I'm worth it, damnit.
And there you have it.
James, Seattle
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Whatever I think the job is worth, and I figure any welding is worth $50 per hour minimum.
If they stutter about the price, I just say think about it, and then after that, I am just too busy to get to it.
A welding professional doesn't spend a lot of time explaining themselves. What they do is performance based, and if you are not willing to pay for performance, go have your brother-in-law or alien neighbor do it.
Steve
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RainLover wrote:

A good example of how the current tax system penalizes productivity and a good argument for support of the new FairTax system being considered in Congress! Pat
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HELP GROW THE ECONOMY, SUPPORT THE FAIRTAX.
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good call Pat. Some more websites to learn more about the FairTax:
www.FairTax.org www.FairTaxVolunteer.org www.myfairtax.org www.salestax.org www.salestaxusa.com www.fairtaxindiana.net
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10$ per hour to get out of bed an addittional 10$ an hour to go down to the shop 10$ more to turn the lights on 10$ to run any of the equipment inside. Then we have to assess any attitude adjustment fees and or compensation to hurry. If you think you are unskilled go on down to the nearest garage and ask them their labor rate.
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A month or so ago, we took off on a fishing trip in our motorhome. The tranny blew outside town. We had it taken to the friendly local Ford Authorized Service Center for Heavy Trucks.
They charge $85 to $140 per hour.
Since I have six weeks to go on our annual service that keeps our extended warranty going, I left instructions on the ticket to do the service. Check belts, hoses, fluid levels, change oil, filter, etc. It amounts to a $300 oil change, but that is what keeps the warranty valid.
They called to say the MH was ready. I asked if they had done the service, too. "Oh, yeah." was the answer. I got there, and was presented with a bill for $0.00 because it was under warranty. I asked about the bill for the service.
"What service?"
"The service I ordered when we brought it in."
"It's not on the order."
"It was on the order that I signed."
"Well, it's not on THIS order."
"Fuck it. I'll just go somewhere that they do $300 oil changes and let them do it."
I am endlessly amazed at high shop rates where they miss the obvious, like putting back the oil filler cap. Not seeing a bad belt. Not tightening something that is loose. A thousand things that Steveland Morris would find. (Stevie Wonder) Knuckledragging workers plodding about.
If you do good work and guarantee it, you will have a growing business and satisfied (and referring good business) customers. You never have to apologize for your rates because it's done and it's done right.
Hell, there's even enough work out there for the crappy businesses to stay in business at high rates.
Steve
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Hi,
I know of a guy in Seattle doing jobbing work. He charges $70 an hour flat rate as a retirement hobby doing retrofits for the 3 in 1 machines.
An aerospace outfit in Upper Saddle River, NJ charged $100 an hour on their universal CNC working to 5 decimal places. That was 1986.
Also, in 1986 I worked for a now defunct jobbing shop in Harriman, NY. He charged then, $65 an hour, 1/2 hour minimum at $30 for off the street work, not bid on. So just figure cost of living increase since. One of the recurring jobs was rewelding fixup for impellars to sewage pumps to the local treatment plant. Just make sure you are up on your immune shots and hold your breath. What a lovely smell up under the welding helmet!
The bottom line is competition and how good work you do compared to the other guy. Are you reliable and timely and consistent? My experience is not too many good mechanics in any trade out there, just a lot of gab and quick moves.
Be careful with getting sued. You insured?
I know a guy here in town, no fault of his own, he repaired a die set. The operator on the job bypassed the safety switches and the operator crushed his arm from being an idiot. His attorney sued everybody that had anything to do with that job. My buddy got sued for a million dollars. He fought it and won, but he had to pay the attorney fees!
Kurt {:{ ===================re:
How do you figure hourly rate? Group: rec.crafts.metalworking Date: Wed, Jul 6, 2005, 5:17pm (EDT-3) From: snipped-for-privacy@novocon.net (monkers) I was asked to do some side work (have full time job) for some people and was curious how you guys figure your hourly rate. I will be doing some machine work and welding. Im curious how to figure in the amount of electric used, welding rod/wire/75-25 gas, grinding wheels, wire brushes, etc.... I dont want to rape anyone, but I dont want to work for free. Im in the upstate NY area (2 1/2 hours from NYC). Any guidlines you guys could throw my way would really help. Thanks, Craig
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