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shopman

02-25-2007 07:55:17




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Hi guys, What’s a reasonable shop rate for machining when you design and build a proto type. This is the second time doing work for this guy who owns a company that imports and sells China equipment. The first job I made for him he requested material specifications that drove up the cost of the part. Once he got the first batch he sent them to China and had the parts made for much less. The material specification on the China parts did not match what he originally insisted on the parts that I did for him. But he paid me my price and that was that. This time I built a proto-type slide motor mount, torque converter assembly that fits on his units. Because of him changing engine sizes three times I had to rework the design and fabrication. The work is done now and I have about I have about 45 hours time invested plus materials. He has mentioned about building more units as a partner but I know full well once I deliver, if there is a market, he will just have them built in China and cut me out. I am not in the fabrication business this work started out only because he contacted me asking for help. When asked I usually charge $35 per hour. Is this reasonable?

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135 Fan

02-26-2007 17:45:52




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 Re: shop in reply to shopman, 02-25-2007 07:55:17  
Most machine shops that do prototype work charge a lot more than $35/hr. He's probably coming to you because everywhere else costs more. If you do more work for him, do it on the understanding you can do it only if you get to make the rest of the units. He's making a lot of money of off your expertise. Get him to sign an exclusive manufacturing agreement or at least a royalty agreement. A lot of shops would go this route. Dave

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IH2444

02-26-2007 06:21:57




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 Re: shop in reply to shopman, 02-25-2007 07:55:17  
Too cheap shopman, heck it is at least $50/hr here to get simple muchine work done.



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Eric SEI

02-25-2007 18:07:26




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 Re: shop in reply to shopman, 02-25-2007 07:55:17  
My brother-in-law's Heating & Air Conditioning business (Carrier) charges $50 per hour for a service call, double for evenings and weekends. I don't see why your time would be worth less.



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Oldmax

02-25-2007 17:31:37




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 Re: shop in reply to shopman, 02-25-2007 07:55:17  
The Co I worked for charged $76 an hour for my work "was Service Tech" & for an Engineer to work on a project they charged $ 120 And hour plus Mileage.



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Davis In SC

02-25-2007 17:17:02




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 Re: shop in reply to shopman, 02-25-2007 07:55:17  
It seems that the China thing has ruined the shop business. All of the customers have developed a sense of entitlement, that we owe it to them, to sort out their problems. Then once we figure things out for them, they send the work to China, to save money. Personally, I prefer not to even deal with buyers that plan on outsourcing from China and other countries. As a rule, I have found they just want to use the local shops, also, this type of customer is often very difficult to collect payment from..

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Dave in Tx

02-25-2007 17:08:01




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 Re: shop in reply to shopman, 02-25-2007 07:55:17  
machine shop labor rates are $65 ph and up around here. Sometimes well over $100 if engineering is involved..... ..



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Midwest redneck

02-25-2007 11:29:56




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 Re: shop in reply to shopman, 02-25-2007 07:55:17  
I work at a small ($ 2.5 million/year) specialty test equipment manufacturer in Michigan. My boss charges $55/hour for building equipment (including machining) and $90/hour for engineering---software, fixture, electrical design etc. I would charge him $40/hour minimum for the machining and tack on a little more for design work of the prototype. I am surethat it burns your a$$ a little that the work goes to China and he may be making a killing on the communist labor, so soak him a little but not enough to make him go somewhere else for the prototypes.

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KYfarm

02-25-2007 09:58:40




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 Re: shop in reply to shopman, 02-25-2007 07:55:17  
There isn't a machine shop or machinist working on the side in his garage that would do anything for $35 an hour around here. For something that takes as long as you put into it $50 is very fair I think.

Then again, if its cash and not taxable business income then that is something else different again. Then the 35 may sound pretty good as cash to your pocket income.

Guess that didn't really help..... .

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Stumpalump

02-25-2007 08:15:20




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 Re: shop in reply to shopman, 02-25-2007 07:55:17  
I've been doing repair work all my life and have found that if you just take the gravey jobs you won't make it in the long run. Seems like 10% of the jobs take 40% of the effort. I have no idea if 35 dollers is a fair price because of what equipment you have to use. I charge 300 per hour and 265 hour travel.Well the company I work for does. Travel ussually means air fare and I'm ussually on site only 2 hours. So we could not stay in biz for 100 per hour but you probably can. I know our local 4X4 shop is 87 per hour but the again people ussually arn't in the shop for 40 hours. Sounds like you have a good shot making some money down the road with this guy but your fellings about how he runs HIS buisness is getting in YOUR way. Take his buizness and treat him fare. Let him do what he wants to afterward.

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BillD1

02-25-2007 11:44:09




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 Re: shop in reply to Stumpalump, 02-25-2007 08:15:20  
Don`t know where you are but wish you were close.Your shop rate is cheap for this section of Ohio.Going rate is $50+ an hour for machine work and I get $40 to $60 per hour for engineering. Unless you have a cheap supply of material and utilities I think you are pretty much working for nothing



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