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I am thinking of raising my rate....I am a small shop...no big trucks ...not much electrical work....Just me, my wife, and two employees(part time).....I charge $40.00 per hour for my instalation rate, and shop rate for general construction and woodworking in house...
I also charge by the square foot for MDO and other signage...I get $8.00 per square for 1/2" mdo, basic two color signage....
what is your shop like? What do you get per hour? Should I raise my rate? I have been at 40.00 for about 2 years, when I went up from 30.00
Just interested in where evrybdy else is on this..... Barry
------------------ Master's Touch Signs & Screenprinting Clinton AR 5017456246 ICQ 17430008 "Imagine the Possibilities..."
Posts: 2500 | From: Clinton, AR USA | Registered: Nov 1998
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While working on the "Cathedral" in Decatur Illinois I over heard a conversation between the project leader and an tradesman,(biz owner and operator and the sole worker of his one man biz)
I overheard him when he was asked how much he would charge to do a certain job. It was one of those jobs you just never know exactly how long it is going to take.
He replied: "I charge $100.00 for the first hour and $55.00 for every hour after that, however long it takes and the materials used.
The project leader put him to work, which took several hours to do his specific job.
I liked overhearing that conversation!
------------------ Draper The Signmaker Bloomington Illinois USA Get To A Letterhead Meet This Summer! See you there! 309-828-7110 drapersigns@hotmail.com Draper_Dave on mIRC chat
Posts: 2883 | From: Bloomington Illinois USA | Registered: Nov 1998
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posted
After reading several articles in the trade mags on pricing, I raised my shop rate to $60 an hour. They say you are lucky if you get 20 billable hours out of a 40 hour week. I am truly lucky if I get that.
I've been managing to get the $60 an hour plus a 15% to 20% profit on top of the hourly rate plus 150% of material cost by using a 1998 Signwriters pricing guide. (next year I'll go to the 1999 or 2000 guide) When I time production, which I do whenever I can, I only add up actual working time and I pour the coals to her. I've also spent a fair amount of time refining techniques, and money on tools that speed production. Speed with accuracy to me are the keys to making profit.
So looking at this, $60 an hour with only 20 billable hours is equal to $30 an hour for a 40 hour week. To pay yourself $20 an hour leaves $10 an hour or $400 a week or $1600 a month for expenses. My expenses run about $1550 a month, (mortgage + utilities + truck + insurance, etc.) so the $60 an hour rate is fairly close. Now I'm getting busy enough to hire part time help. This is helping alot as I'm paying $7.00 an hour during training and anticipate her going to around $12 an hour when she's able to work on her own. If I bill a job with her labor exclusivly, I get around $40 an hour for her labor, so that adds to my profitability quite a bit.
Installations are billed at $40 an hour and $90 an hour with the Van Ladder.
------------------ Dave Sherby "Sandman" SherWood Sign & Graphic Design Crystal Falls, MI 49920 906-875-6201 ICQ: 21604027 sherwood@up.net
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$65.00 per hour. Also, if you don't raise prices by at least 4% once a year, you are taking a cut in pay. It's called inflation, and it happens wether we raise our prices or not. I normally raise 4% and round to the next even dollar. This way you can actually get a little pay raise too. I am using the pricing guide, and adding 12.5%(4% per year for 3 years)
------------------ Don Hulsey Strokes by DON signs Utica, KY 270-275-9552 sbdsigns@aol.com
I've always been crazy... but it's kept me from going insane.
Posts: 2315 | From: Utica, KY U.S.A. | Registered: Jan 1999
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posted
$200 per hour. I bid everything accordingly, but do not charge for travel time or most materials in doing splash art for car dogs or fast fooders. Grocers pay more per hour, especially if there is an ad agency involved. Some +100 mile deals I get another buck or two for trans. If it is a permanent sign with typical materials, I try to mark them up 40-60%. I also paint windshields (114,000 to date). I charge $8 a car and do 26 per hour, thus the $200 rate with a one hour minimum. I never quote my hourly rate as it does offend people and instead, I just ask what they need me to do and I give them an exact bid, never deviating from what I quote and ALWAYS show up on time when I say I will be there. The typical car dealership has me come in, do their showroom windows and I usually get $800-1000 and am there three hours. I sometimes have sent them a drawing in advance and sometimes have additional time in development, but 75% of them are $800 and three hour deals as I freehand everything with no patterns and with only snap lines and a rough computer sketch. I send them a bill within a week and maintain 100% collection rates. My advice? Do not try this at home, kids. Very hard to get set up and going!
------------------ Preston McCall 2516 W 63rd St. Mission Hills, Kansas 66208 913-262-3443 office 816-289-7112 cell
Posts: 1562 | From: Overland Park, KS | Registered: Nov 1998
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posted
I get $65.00 per hr.2 hr.min.for service call with $45.00 per after and $10.00 a sq.ft.for MDO and 40% market up on product.
I have thought about charging $25.00 per.hr. for computer time,forlay out and design,quotes. I dont mind giving free quotes but when the guy comes in and say he want me to do the work so I drop all the none pressing work to layout and design his stuff and then he tell me he dont have time to aprove the work. just peeeeees me off!
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I quit using the hourly rate when I figured out I was working much faster than the "other guys" and what the price guides say. I was cheating myself out of hundreds of dollars a week.
I used to feel guilty about all the free time I Have, but therapy (and a new boat) has helped me get over that.
In the Wash Dc area, you better be in the 95-125/hr. or you'll go bust in a new york minute. 800 sq.ft. runs 2 grand. double that for total overhead, and you've gotta bust yer azz to make it here, or get the Big dollars for the time you do work. Guess which one I chose....
------------------ Mike Duncan Lettercraft Signs Alexandria VA
From here on down, its all up hill.
Posts: 1328 | From: Centreville, VA | Registered: Oct 2000
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posted
Using a shop rate per hour should aid you in pricing something, but not be the law. I feel one needs to charge what the job is worth first. The rest is called profit. It's still good to have a shop rate to ensure your prices ARE in line with your expenses.
Back on topic, my shop rate is currently $65/hr, higher in some cases. (I'd love to charge $100 but...) I always add a profit on top of the shop rate, and triple vinyl costs, double some substrates. My logos are VERY high, but if I charge less, I don't put my best foot forward so I normally don't budge on price there.
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I am with Mike on this one. I charge by the job. The only thing I charge by the hour is design time. All other jobs are priced by the square foot, square inch or materials times three, depending on what type of sign it is.
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