Pricing on steel supplied jobs

[cutnweld]

I am curious what I should be charging for cutting heavy materials. When I need to run my machine wide open to the point of exhaustion, is it worth something? Like cutting 1.75" thick plate for example, 300 inches at 4 or 5 ipm. It takes awhile, but it saves the other shop I'm doing it for a day or more of grinding after they would cut it by hand with a torch. Like it seems cutting by the hour is to cheap unless the rate is high, there is no time spent doing rapids or touchoffs or anything. It is to the grindstone the whole time.

[djreiswig]

I think what I'd do is figure out what you think it costs them to do it by hand and then discount it so they feel like they're saving money. Plus they are also ending up with a better product for their customers in the end.

[adbuch]

If you are billing by the hour, then perhaps have different hourly rates depending on the material thickness, or as djreiswig says - just charge them by the job. I think it all depends on how badly you need (or want) the work. I don't do cnc plasma commercially, but I do cnc machining jobs and charge by the job. I figure in programming time, set-up time, actual run time, materials costs, tooling, any post processing (special finish work or plating), etc.

David

[arnegrant]

Billing hourly is hard to come out.

Bill lump sum is hard to get work.

I usually do the math three ways

1. Gut feel.
2. Detailed takeoff (math with all overhead)
3. Past jobs
And if you can figure how much money is on the table.

Then average or take the high.

[adbuch]

I don't do cnc plasma commercially, but I do cnc machining jobs and charge by the job. I figure in programming time, set-up time, actual run time, materials costs, tooling, any post processing (special finish work or plating), etc.

David

When I made the statement above, I was describing the variables that I figure into calculating the quoted price. I don't "show my work" and simply quote price per part. Often the customer wants quotes for say 100 parts, 500 parts, 1000 parts. These are figured per part and the price per part is shown on the quote. I don't think they care how many hours it takes, details on programming, set-up time, etc. They just want to know the price per part and how soon can they have their parts. That has been my personal experience over the last 20 years or so.

David