Charging for my tools

Jan 31, 2005 22 Replies

I'm a mobile mechanic, in the US. I have a deal starting where I'm being hired to work out-of-country. For one year, possibly longer.



I'm negotiating an hourly rate, suggested as 1.25X



- 1.50X of an in-county rate. Expected as 40 hours, w/ OT, on call 24/7. I expect to be a one-legged man in an ass kicking contest for a month or two.



Does anyone have any suggestions as to - what do I base a tool rate on? This is my first stop, google is next. ;)



I'm mobile, truck based and I have been for 8-9 years. I'm darn-tootin'-sure I want to take all my tools, a welding machine(s) and tanks and compressor should be available on-site. I may take my 135 Handler, set up w/ flux core. I'm certain it (tools) will be a second negotiation.



Presently everything, or almost everything is in a 161 inch Ford Super-Duty (F450-550)tool body "standard height", no top boxes. Much to 3/4 inch drive, a little 1 inch. Basic electrical testing and repair. Portable air and elec. angle grinders, drills (+ right angle), die grinders, band saw, nut and bolt selection, o-rings. Welding rod, nickle rod. Pullers, slide hammers. The country is on 110 Volts, 60 Hz.



I will need to buy a few tools, exothermic cutting torch, I borrow one now, as needed. And perhaps pack another porta-power and all the cylinders (5 or 6 of them).



If anyone has any input I'd sincerely appreciate it. Thanks.


Get your money in wages. Maybe 2X to cover tools and all. Tell them why you feel you need to get payed that much. If a tool breaks, you buy another, instead of trying to get them to replace it.

Les

- snipped-for-privacy@nowhere.net - spluttered in news:MdpLd.6375$Vg3.3187@lakeread05:

Noted. ;)

Agreed on the hourly rate approach, though special jobs where you rent equipment only for that job should be figured into the job bid. Disagree on explaining your price structure - avoid arguments. Be open to negotiation however.

Explain your price structure in terms that the customer understands:

- minimum charge to show up

- time

- materials

- special equipment or extra labor

- payment schedule

- charges to expedite or make changes

C>Get your money in wages. Maybe 2X to cover tools and all. Tell them why you

I would double check your overheads - housing, food, gas for the truck. I've known people to go out of country for what seemed like a great rate to find that they were breaking even or worse after everything was taken into account. I'd set your rate like a shop rate - fully loaded - same as a auto shop would do. If the hourly wage you want to earn is $25, your shop rate should be 2X at least.

If you want to be more scientific, add up the current value of all of your "stuff", including new stuff you will buy. Divide that by 60 to get the monthly cost to you on a straight line depreciation over an estimate life of five years. Divide that by 160 hours a month (you may work more, but that's the normal work week these days). That's your direct cost per hour. Multiply that by two (50% gross margin, in other words) to get what you charge for your stuff, cover loan charges, operating expenses, etc. If your stuff is worth $100K (reasonable given your list, if not on the low side), then your cost is $10.41 per hour and you should charge about $21 - $25 per hour for all of your stuff. This way, your "nut" is covered if you work 40 hours. If you work more than that, you are getting what amounts to overtime, your extra $25 for stuff goes into your pocket less what additional maintenance and direct operating costs amount to.

I hope this gives you an idea or two about how to work this out.

Brian

I'd also recommend that you understand what country would have jurisdiction if a problem arises. A contract drawn up in the US between you and and a foreign company might not me much in that country. I'm not trying to scare you, but do believe that you should take nothing for granted in a case like this. You don't need to loose your tools because they end up impounded over some problem you didn't see.

My tools are worth as much as I am. It is like having two men there. Charge for two men. What is this ..........

I'm certain it (tools) will

Hasn't anything been said? DO NOT do anything that is not in writing. Make damn sure that it is all written out in advance. An agreement for what is expected if tools are lost, broken, or stolen would be adviseable. If they are bringing you in to do this work, it is an indication that they can't get anyone there to do it. You have some leverage.

Steve

After reading other posts, I have another tack on this.

I would not take my tools to another country. At least not as much as you are considering. There are too many things that could happen. In shipping. After you get there. Coworkers. yadayada. You are going to have very little leverage in getting anything back or paid for. They will always be ahead of you in the work/pay relationship, and you would have to fight to get anything back if everything is stolen, confiscated, held in customs, whatever.

I would sell them everything at 2 or 3x the full new replacement value for top of the line tools. Then if there is a problem, it's not yours. Think of it ........... imagine being the guard dog of that many tools around a lot of people for a year. Stuff happens.

Scenario:

(And if you consider the state of things in the world today, this isn't that farfetched ..................)

You are in Lower Yankzakistan. One day, you have to either run for your life or stay and guard your tools because you don't want to leave them. Gunfire is whizzing past your ears, and getting closer. What are you going to do? Or, some 12 year old comes up with an AK and a bad attitude. Those tools are an anchor around your neck. You will have to guard them 24/7, and even if you do, I will bet a week's pay that if and when you come back, you will have tales of theft. I did two hitches in Africa, and people will steal whatever they think will buy them food. And people with guns will steal anything.

I just think if a company wants you to bring YOUR stuff, it ain't much of a company. Now, if they want you to bring a brief case full of teck tools, or a duffle of PPE and favorite hand tools, that's different.

You are thinking about embarking on a muddy road with a shitload of tools. I think you are heading for a cliff.

Just MHO, based on personal experience and what I would do in the same situation. In my first summer, I took a Craftsman box of tools offshore in the Gulf of Mexico. I came back with about half of them, and what was left aged ten years in three months.

Steve

- Doug - spluttered in news: snipped-for-privacy@corp.supernews.com:

Noted. I have spoken to an accountant AFA taxes. The country is important so far as what sort of treaty the US has signed.

I'm on a first name basis with several attorneys and have some input. It's a US company, the country is a British protectorate.

Ah, Cuban seegars.....

- "SteveB" - spluttered in news:7%sLd.400$mt.201@fed1read03:

Thank you. You've made perfect sense.

The company *isn't* asking me to take my tools but I, I , I, ... well, you're changing my mind. I would like to take, without a doubt, some items.

Narrowing that down, grrr, I know what I got, like the back of my hand. It's making sure I get paid like I should *and* being able to perform to that level: that's my reasoning.

I will explore what sort of security to expect. This company has already sent (and back) an employee for a 3 week period.

If a truck is (made) available and a container to store it in, that would be a consideration. As another poster suggested, loacl customs, and just-plain-thieves can crimp, as well.

Country is in the Carribean. And salt water iz all around!

And the Kazickstan tale isn't that far-fetched. I'll be an American in a foreign country. My 9mm will be in a buddy's basement.

Murphy's Law consists of three elements. #3 is the most quoted.

#1. Nothing is as easy as it looks. #2. Everything takes longer than you think. #3. If anything can go wrong, it will.

Murphy was an optomist.

STeve

I just turned down 4x to travel out of country , that was with all expenses and equipment paid by the company

my peers are consistently getting 5x to 8x for out of country over 10x {300 per hour] to go to the gulf

being a hydraulic tech is fun,

your selling your skill and knowledge to do the job right the first time , reducing the customers downtime and frequency of repair get paid and get paid well

I don't claim to know anything about your market, but your hourly rate sounds really low for this kind of deal. On call 24/7 ought to get you a bonus plus out of country should really increase it.

Steve

Greg M wrote:

Proper atribution is important: It's O'Tooles commentary to Murphy's law that says "Murphy was an optomist."

formatting link
:)

SteveB wrote:

Trouble with that idea is that the company holds your final pay until the end of the job, too. You have a hard time "holding them responsible" for anything. They can hold their deposit out of your bonus check. They have all the leverage.

In a lot of contract work that is done overseas, the person must fulfill the contract. i.e. That person must stay for the specified time. If they leave early, they are paid at a lower rate for just the time they stayed. They don't want people "dragging up" as it is called. (quitting early) It costs for them to replace you, and they don't like it. So, they keep your "bonus" until everything is over.

There has to be some incentive for a person to make the end of the contract. Sooooo, they hold hefty chunk until you are done.

Now, there are a lot of clauses in there. And those contracts are written by lawyers. There are many ways they can welsh on the deal if they don't want to compensate you for something you claim is owed.

The best thing, IMHO, and as I have stated, is for the company to own the tools. That way, there is no question about it. And there is no incentive for a person to stick their neck out for company tools, where they might do it for their own tools. There is no question when a tool comes up missing. There is no question when a tool is broken.

Taking that much of your own stuff is a real bag of snakes in any situation. And trying to get even if the deal sours is a bigger bag of snakes.

Just MHO from my experiences.

Steve

My my my , there's a whole crapload of stuff on that page. (grin)

- RoyJ - spluttered in news:H7CLd.3452$ snipped-for-privacy@newsread3.news.pas.earthlink.net:

- "williamhenry" - spluttered in news:y6BLd.11194$ snipped-for-privacy@bignews5.bellsouth.net:

Thank you. You are right about how I view my job and abilities.

It's not a conflict zone, fortunately. But the US State Dept. still has a travel advisory against anything but essential (business/ work) travel.

- "williamhenry" - spluttered in news:y6BLd.11194$ snipped-for-privacy@bignews5.bellsouth.net:

(Damn) I included my email in the previous post and mucked it up.

Thank you Steve. I appreciate your input. The US State Dept still lists the country as; advised against non-essential travel.

And most of my tools are going to stay at home.

- Steve Smith - spluttered in news:41feead2$0$202$ snipped-for-privacy@news.frii.net:

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required