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Hourly rate

Started by Rich, June 27, 2011, 11:35:05 am

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phoenix

How's this for an hourly rate. had a conversation with a window tinter the other day.
he charges $160 to tint an average car.watched him do it in about one hour.about 15 ft. in product. he's mobile...works from his vehicle... 6 to 8 cars a day... booked solid!
what was i thinkin'! (tint is cheap!)
pinstriping...$150 worth of product & tools...(lasts about 3 years)
$125 & up per car...les than an hour in labor...what was i thinkin'!

Rich

I used to do auto trim, branched out into electric moonroofs, simulated convertibles, (this was back in the 80's) and my shop was small and not very efficient, but the guys who had larger shops and did dealers only made way over $100.00/hr. This was over 25 years ago.
I think there's a lot of money to be made when the product is in demand and the focus is narrow enough that the operation benefits from the economies that result; Bulk ordering, repetitive labor that produces quicker times, repeat customers, etc. But when the work is custom, it's slower and should be priced accordingly. I knew one guy who had a contract with Saudi businessmen outfitting new cars with all kinds of gaudy doodads, chrome this and that, moonroofs etc. Those cars had to be done at a reasonable price (he still made tons of money) and neede to be at the dock for shipment overseas on-time. But sometimes, they'd ask him to do something out of the ordinary. He either had his guys do it in his shop, or farmed it out to me. Then the customers paid through the nose :o
Getting the highest price isn't always possible with every type of job and I think some jobs, by being in the mix, either keep a good customer, or keep employees busy, but if one is not making the most of the jobs that should bring in the bigger bucks to average everything to a high enough profit, it's a bad situation.
sofadoc, I'm glad to hear that you are rethinking this pricing thing. I need to get shaken up once in awhile too.
Rich
Everything's getting so expensive these days, doesn't anything ever stay at the same price? Well the price for reupholstery hasn't changed much in years!

Ihavenoname

There is no way anyone in my town can charge $100 an hour. A 16 hour wing back would run $1600 plus fabric. No way.

$550 is the going labor rate here and I get  a lot of gasps at that price.

Mike8560

 o erhead is the big thing. And how fast the job can be done.  I was as high as $ 1500 a month rent plus utilities.   Insurance Wichita is needed to work places. 
  Iliminating rent was my bigest thing along with getting the job done cast.   
Time is my bigest problem running from job to job and gas.