Labor Pricing

[Ruger]

I’m trying to start my own ornamental iron business. I’ve been doing it for several years, but I’m having trouble learning the business side. My former employer wouldn’t help me learn how to price my work even though they were retiring and getting out of the business. Any help y’all can give would be much appreciated.

[Sberry]

Enough to give them a heart attack, not enough to kill them.

[Louie1961]

This question has been asked and answered many times. Try using search. Use phrases like shop rates, labor rates, how much would you charge, etc.

[tapwelder]

Given our current state, your employer may not have known? Cover your gass.

[smithdoor]

The only toll was just call others in same line of work.
Getting started you need to have a better price.
My line work at time only had 3 other companies in America and we new everyone. So this did not work for me.
But contractors did tell me there price.
The ornamental iron business is harder since a lot more in work and they can work from backyard too. In California to install ornamental you need a contractors license too. Other states just a business license [always make a portable type work fewer problems]

Dave

I’m trying to start my own ornamental iron business. I’ve been doing it for several years, but I’m having trouble learning the business side. My former employer wouldn’t help me learn how to price my work even though they were retiring and getting out of the business. Any help y’all can give would be much appreciated.

[Country Metals]

If your in NJ, good luck! You may find out the hard way why smaller guys aren't there anymore.

[smithdoor]

Any self employment can have up's and downs. Typically the big guys have good ads and word of mouth.
Most go into do take in the advertising and salesman ship.

For longest time would companies that did a lot but there quality was not. What had going for them selves in a good salesman ship.

Dave

If your in NJ, good luck! You may find out the hard way why smaller guys aren't there anymore.

[bassboy1]

The post in this link is what I have to offer.

https://weldingweb.com/vbb/threads/7...73#post8846373

If you're just getting started, it's a little harder, as you don't know how much a lot of your expenses are. Add up the ones you do know (shop rent cost, telephone and internet cost, etc etc). Estimate the ones you don't know - take your estimate and multiply it by 1.75 (will probably still be low, but it gets you somewhere). Then tally them all up as I said in the linked post, and go from there. Reevaluate in a few months, and again a few months after that - the more time goes on, the better a handle you'll have on your expenses.

[shovelon]

When I started I charged 3 times what I paid my employee. Now I charge 4 times my employee considering all the bull ship taxes, fees, and fines I endure. So yeah I pay no employee more than $25/hr, so my shop rate is $100/hr, with a 25% discount for geezers over 65 years young. The geezer discount age goes up every year I get older because I am 65. If I can work, they can work. I will still give the discount if they bring me some kind of fruit pie. I had one lady make the best peanut butter pies. She got the best discount, then she died on me.

[welding1]

In the beginning figuring what to charge is like knowing how they built the pyramids. basically your rate should be similar to other skilled trades in your area. Your rate never will be cheap enough and once in a while a customer will pay extra, usually on a small job. good luck!

[BillE.Dee]

shovelin,,,,EASY on the geezer. I got out of several job descriptions and trying to retire for the third time. I CAN'T STOP !!! I "thought" I was going to be well desired, BUT, there are more welding shops around than I could imagine ... for a small area too. I only want to make beer money and little left over for church offering. NOT working out too well. I am now tinkering with home projects, but will do small jobs for a beer.
As far as what to charge per hour, you need to figure out the "common" expenses ... electric, rent (mortgage) consumables and return on your investment ... equipment and what your talent is worth.
Good luck on your endeavor.
shovelin, I got ya beat by 10 and with my crash, the doc said I lost 12, yet, I'm out here killin it. Enjoy life and stay safe.

[Pofet]

Usually, I negotiate the price with the worker. I ask him what are his expectations. If I can pay the price he asks, I agree.
BTW don't expect low prices for such a job. Pay the workers fairly and your business will bloom.

[Sberry]

In the beginning figuring what to charge is like knowing how they built the pyramids. basically your rate should be similar to other skilled trades in your area. Your rate never will be cheap enough and once in a while a customer will pay extra, usually on a small job. good luck!

Getting started you need to have a better price

Agree with the welding1 on this, but starts dont always have to be low provided the skill and biz are good enough, in fact that is a hard way to get in biz. If you get much work soon too busy to look for more profitable jobs. There is some trade off here but look for 1 good job vs 10 poor ones.

[Louie1961]

The post in this link is what I have to offer.

https://weldingweb.com/vbb/threads/7...73#post8846373

If you're just getting started, it's a little harder, as you don't know how much a lot of your expenses are. Add up the ones you do know (shop rent cost, telephone and internet cost, etc etc). Estimate the ones you don't know - take your estimate and multiply it by 1.75 (will probably still be low, but it gets you somewhere). Then tally them all up as I said in the linked post, and go from there. Reevaluate in a few months, and again a few months after that - the more time goes on, the better a handle you'll have on your expenses.

I still stand by the advice I gave in that thread. Figuring out how to price services has paid for 2 of my kids to go to college, I have done it for a very long time. My point of view is that of a CPA (which I am), not as a welding shop owner, so take it with a grain of salt.

[Sberry]

I am with Louie on this, I have been up and down the pricing road for years in a family biz. Some so scared they are going to lose 1 customer they give it away to 99 others. I got to explain, didnt work to get to the top quality/product to be the low price leader. Like Snapon,,, their point isnt cost. We enter or return to a bit of a new market this year, our competitors actually raised in the middle. We found when we raise, they do too.

[smithdoor]

I do QUOTED work only.
So what the market will give me.

I found hourly work paid less and I make up time as work.

Dave

I am with Louie on this, I have been up and down the pricing road for years in a family biz. Some so scared they are going to lose 1 customer they give it away to 99 others. I got to explain, didnt work to get to the top quality/product to be the low price leader. Like Snapon,,, their point isnt cost. We enter or return to a bit of a new market this year, our competitors actually raised in the middle. We found when we raise, they do too.

[smithdoor]

To me all good jobs if they pay.

They other is shops that use TIG welding only.
You ever did tig it has to very clean
1 sand clean
2 use a degrease on the metal.
3 check for drafts
4 use a rod for filler metals
5 all work must be in position.

Using fluxcore or stick
1 grind the joint
2 start welding
3 any position

It is about 3 to 4 times fast than tig.

Dave

Agree with the welding1 on this, but starts dont always have to be low provided the skill and biz are good enough, in fact that is a hard way to get in biz. If you get much work soon too busy to look for more profitable jobs. There is some trade off here but look for 1 good job vs 10 poor ones.

[Sberry]

Thats different than trying to enter on price.