jlpservicesinc

How Much Per Hour!! (What is you shop rate)..

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I remember seeing an animated documentary program in my youth where there was a coyote who would do complex calculations involving laws of science in his pursuit of a roadrunner.  

Sometimes the coyote would be running so hard that he'd go off a cliff and keep going until he looked down whereupon gravity (a law of science) would suddenly apply. He always got banged up really badly.  Sometimes he'd see his demise coming and would hold up a little sign with "Help!" written on it.  

He never caught the roadrunner no matter how hard he tried.  

I figured it applies here because anvils often played a vital role.  No matter how convoluted the coyote's reasoning, the laws of science brought about his demise.

Today's kids probably don't get a chance to see it because it portrays suicidal patterns of behavior.  

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Interesting thread for sure.  Having run my own flintknapping business on the side for 11 years, I can tell you that having base rates are good but you have to be willing to float that rate both ways.  This applies more to pricing products for sale, but I do a fair amount of special orders that I set base rates for.  I know product A takes me about X amount of time to do and I always have Y amount in materials so I know I always clear a profit of a certain amount.  Where the trouble lies is with purchasing tools.  You have to watch it or it's just money in and right back out.  I also pay all my taxes including sales tax.  For many years I didn't charge sales tax and just paid what was owed because my customers always seemed to be annoyed with paying tax at a show.  Like others, I work a day job and have the business on the side.  

I have to agree with others who've said it's hard to set a shop rate when what we do is more art than industry today.  If my shop hourly rate is $60 and it takes me an hour to make a fork and spoon, I can't charge $60 plus materials.  That just seems high to the average Joe.  The shop rate also breaks down on something like hooks.  Say you can make 10 S hooks start to rust proof finish in an hour.  Would you charge $6 a piece for them?  Perhaps a shop rate works better with custom railings and fancy chandelier work, but common things it just starts getting squirrely IMHO.

As an artist, I know I'll never get my time out of a piece so I set my prices to make a profit and leave it at that.  If it were paying my bills, I might feel differently. 

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No one pays attention to it tho. But it rings true. Oh so true.  

image.jpg

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I  came late to this discussion..

I don't do hourly, sometimes I think back over what I've made and figure it by the hour but I do not price jobs hourly. My full time job is as a Carpenter, I build houses and decks and work for myself. I try to never make less than $200-250 a day. And unless there is some deadline I don't work more than 8 hours a day 5 days a week. When I bid a job the client is required to pay for materials and I receive pay either on draws, or when the job is done depending on the size of the job.  And the same goes for my blacksmithing business. No less than $200 a day, not counting materials, sometimes it will be many times $200 in a day.  Also if there are any tools needed that will be semi expendable I just price them into the quote.  So in summary:

Shop rate: >$200/day + Materials.   Semi-Pro.. (not quite a hobby, not quite my living)

No overhead, except a little electricity. Maybe a few belts and wheels.. But hey, add them onto a job! My shop is next to my house.

I've also learned not to be scared of pricing to high, I noticed people like to pay more for less. I think its because they wonder whats wrong with it if you are cheap.

 

 

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The highest rate on my shop sign was if they had worked on it themselves then brought it to me :D

Rhyfelwr - agreed , many acquaint cost with value. A stockmaker I know sent a high end customer of his to the gunsmith I worked for to have a screw replaced in a mid seven figure shotgun. Eldon did it and charged $20. The customer was on the phone calling Eddie and asking "was this guy any good!?". Eddie called Eldon and got on him for not charging more like $120 because that is what these guys are used to paying.

 

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12 minutes ago, BIGGUNDOCTOR said:

The highest rate on my shop sign was if they had worked on it themselves then brought it to me

Good call. 

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