Pricing Help

[radnurse68]

New to pricing game....got an order for a 32X13 basic sign made out of 3/16 hot rolled with basic stencil font with the customers name and address on it. No paint or powder coat. Just cut it and remove the dross. My material cost is about 4.95 sq/ft. I've read some guys on here talk about charging 2-3 times the material cost but at 3 times it's only about $45. Seems to cheap to me. Any suggestions?

[weldor2005]

Ask yourself if you want to have a minimum shop rate. Like say an hourly cost of $50 or $75 dollars. most big time shops are around $100/hr as they have more overhead, and that mixed with them not wanting small work is why we get these items.

I have sold production signs, painted one solid color about that size and 16 Ga for $50. So for 3/16, not painted, between $50 -$75, again figure out a shop rate, and a minimum number for a custom order.

[tirediron]

One of the price structures that I use is this formula -- ((length*width)/144*20). I change the last number to reflect what I am doing for the customer. In this example I used 20 for metal that I cut and clean (remove dross, etc.), 25 if I paint and 30 if I powdercoat. So in your example it would be ((32*13)/144*20 or $58.

G

[JEd]

Since it has very little CAD/Cut/Finishing time I'd be around $50.

[Shane Warnick]

I would be in the $55-$60 range, maybe a little less depending on how much cutting there was in the letters etc. That would be the raw price, prob add $25-30 for paint depending on how they wanted it painted, add $45-$50 for powder coat depending on the desired color.

Shane

[radnurse68]

Thanks guys. that def helps. Hey tirediron, just for my knowledge what does the 144 represent in the formula?

[muzza]

Thanks guys. that def helps. Hey tirediron, just for my knowledge what does the 144 represent in the formula?

That's the magic figure you pluck out of the air when quoting

Realistically you charge what your happy to earn and what the market dictates, if it's too little or too much you'll know better next time as you'll hurt in the hip pocket either way. If a customer wants to look hard enough they will always find someone who will do it cheaper but again in reality, price is only part of the factor.

Provide you customer a service delivering what both parties are happy with and you will generate an income.
Murray

[JEd]

Thanks guys. that def helps. Hey tirediron, just for my knowledge what does the 144 represent in the formula?

He's converting Length times width in inches into square feet. 12X12=144. Then charging $20 a square foot.

[CNCCAJUN]

Thanks guys. that def helps. Hey tirediron, just for my knowledge what does the 144 represent in the formula?

He's converting Length times width in inches into square feet. 12X12=144. Then charging $20 a square foot.

How do you account for thickness of material ? Lets say 14 gauge vs. 10 gauge or even 3/16"?

Steve

[Shane Warnick]

Thanks guys. that def helps. Hey tirediron, just for my knowledge what does the 144 represent in the formula?

He's converting Length times width in inches into square feet. 12X12=144. Then charging $20 a square foot.

How do you account for thickness of material ? Lets say 14 gauge vs. 10 gauge or even 3/16"?

Steve

You will notice that he stated in this example he was using $20. I am sure he changes it depending on material cost. I use a very similar method. I don't charge for pierces normally, however if I am cutting a plate and they want multiple holes located of numerous pierces on really thick plate I will, I just mark the material up a set amount then figure the charge per square inch (as recommended by the infamous Jim Colt, thank you sir). I use that for the area of the material used and also the same number for inches of cut. Then add secondary processes (paint, welding etc) in after the fact. The initial number includes knocking the dross off for a raw finished product, then everything else is extra. 1/4" and below gets marked up a certain amount, 3/8-5/8" another amount, 3/4 and above are yet another (and MUCH higher) markup. I also charge an $80 material handling fee on orders for material that is thicker than 1/4" and less than $500 total. I charge for CAD time if it takes more than 15 minutes, but make sure they know it's a one time fee and I will keep the design on file for future projects. I have several industrial customers that will call and order 300 more of something, and they don't get hit with that fee each time just the first time. I make sure I dimension the drawing and get written approval before the first run, this fee helps cover the time for emailing etc. I am also very up front with my customers that if they feel a price is unfair we can talk about it and I can explain to them why the numbers are what they are. Never had anyone get bent over an invoice (not yet anyways) and I am consistently cheaper than the water jet guys that are around.

Shane

[natewelding]

Id tell him 75$ if it was me doing it

[radnurse68]

Thanks for the help everyone! I ended up settling on 75. Like a lot of folks I went into this as a hobby (recently) with the hopes of it paying for itself. So far I've been struggling quite a bit with the programming/designing part of it but to be honest I haven't spent the kind of time that is probably needed on it so far. My mind tends to go in a lot of different directions and I end up with a bunch of half finished projects. I recently purchased a bunch of used wine barrels to make stuff out of so now I have another excuse to put off learning the table!! Anyway thanks for the input. I recently posted a question of how to properly use the "plasma calculator-excell spreadsheet" that has been passed around on here some but haven't had much luck. It seems to take into account for all of the factors that would go into pricing a job but I need a little help plugging in the correct data. If anyone has any personal experience with it I would greatly appreciate it.

Thanks again,

Creating Sparks