Hey guys, having some trouble setting prices at the shop and wanted some opinions, of course it's easy to set prices on big stuff like exhaust, dowpipes, and intercooler piping. But we'll also have people come in that I assume just did a google search trying to find some local welding. For example last week I had a guy bring in wire frames for his kids laundry hamper that they broke and he wanted beefed up and made "child proof" all I did was add another tack everywhere there was an existing weld, also had a guy come in with a broken handle for his elliptical that needed welding, then a guy today that just needed and exhaust hanger fixed. Now I would like to keep a set price like if someone walks in for something welded it would cost say $50 for me to weld, plus more if deemed necessary, but at the same time, 50 to weld an exhaust hanger seems excessive, just wondering how you guys come up with your pricing for these small odd jobs.
Thanks.

 

by the hour, your prep work or their prep work (stripping paint, not prepping/cleaning with acetone), i admit its tough to price out these odd jobs and come out ahead. jobs like this are mostly just quick change in the pocket and are not meant to take up a days work. if they do you gotta price them like that.

its tough to lay down a flat rate fee because you never know how big/small the "odd job" will be.

we do a lot of carbon fiber odd jobs and it very tough to price these due to the amount of time to make a mold (if needed), take in to account supplies, etc.

 

if im already welding and it takes me 10-15 minutes, ill just do it for free. But if its happening more and more, id charge by the amount of labor rate x time. People will understand it isnt free and they will pay.

 

You need to determine your shop's overhead costs (rent, wages, utilities, maint, etc) then multiply your overhead costs with a markup rate (10%-400%+) to get your labor rate with a built in markup. Estimate jobs long, and set a 15/30 minute min. IE: $85/hr labor rate, $21.25/$42.50 base charge regardless even if its takes you 30 seconds. One simple method of tracking this is to punch into a time card for individual jobs, punch out when you are done and include a copy of with your invoice. This shows you billed them for exactly your time.

 

Similar issue in my business. But we generally price out over the phone for plans. We sometimes get calls for really small things but won't take them on for less than a certain amount. Price out what the lowest you will do something for and don't go lower. Stick to your guns on that.

My example is that we design sump pumps sometimes. I started taking on some of these jobs for small amounts to just get work when we weren't busy. Turns out the people wanting this stuff for cheap were the pickiest and didn't agree with our designs. Now we won't do these for less than a certain amount, even if that gives us repeat business in the future.

 

i work in the ranch fields with heavy equipment and when something breaks and needs to be welded we go to a local shop near by were theu usually just charge 40 bucks for a quick 5 min job. i admit it may seem a little high but the only other close by shop is another 20 min drive. and fixing sumthng always beats buying it new.. jmo

 

a flat minimum rate is understandable if posted up clearly for the custumer to see.. cant argue with that.. ur shop, ur prices, get wit it, or gtfo

 

I don't turn my welder on for less than $20. That is for stuff I can put on my bench without having to work at removing the part that needs to be welded.
One weld $20, any extra welds $5 to $10 depending on how much time I spend on each weld.

 

i don't weld for a living, but as a hobby/side job. i don't do any hardcore fabrication, but alot of sheetmetal repair and such (floorpans, rockers, etc...) and i base it by the hour, or if it takes less than an hour, i charge half, so 30 minutes worth, whether it takes me 5 or 25, 30 is the price

 

We have a 1/2 hour minimum. If you're busy, and you have to stop what your doing, setup, prep and clean. It's not worth much less than a 1/2 hour minimum. Only way other, is if you are already welding, and someone brings something in ready to weld, just needing a wipedown. Otherwise its really not worth it for me.

 

Minimums are really a requirement in business, and they need to be adjusted to your production level. For us:

Welding: 30 minute min
Waterjet: 10 part min
Bending: 100 part min

 

I used to bid prices on jobs but now I do everything time and materials at $100/hr and $50 min charge. Way easier and also allows the customer to know exactly what they are getting. Ill never go back, I no longer lose my *** on jobs.

 

I used to just base a job off what I thought it would be, but now I try to stick to $40/minimum. That's half a hour. I'm still not as strict as I should be, but I'm getting better and my wallet is appreciating it. lol