Let's Play "What Would You Charge"

[Dan Hintz]

Why is it that everyone, many with much less investment than we have, should be okay to charge $90 per hour, but when we quote things, some people think we should be quoting at $45 per hour, or less? I don't get it. I have just as much, if not more, time invested into learning my craft as the guy with the $10,000 lawnmower sitting in a cushy seat, cutting grass, but he's supposed to make more than me? Why?

This is an ongoing debate I have with some others who are more of the woodworking persuasion. Those folks (and I'm sure the vast majority of our customers) truly believe what we do does not require much knowledge, testing, etc. With that mindset, it's no wonder they balk at a $90/hr shop rate. To them, our skillset (and that's truly what it is) is hardly more impressive than a landscaper (someone who mows lawns, I might add, which is NOT a true landscaper)... but WE get to work in an air-conditioned space and sit on a comfy chair, so why should they even pay us as much as the gardener? Needless to say, they are truly ignorant to the hard work I (we) have put into this field over the years. I'm okay with that ignorance, as long as it doesn't cost me... but it usually does.

[Rich Harman]

My base rate is $90/hr ($1.50/min). I adjust up or down depending on the job. I ask what the customer's budget is and try to figure out what I can do for that much. I almost always come in under budget for them - they tend to like that. For this example I think I would charge about $12 ea, adjusted upwards from my base rate because I cannot do multiple items at a time plus I have to deliver.

I don't give one whit about market rate. I charge what I think it is worth. I don't up the charge just because I can. I'm not a very good capitalist, and I'm okay with that.

[Keith Winter]

This is an ongoing debate I have with some others who are more of the woodworking persuasion. Those folks (and I'm sure the vast majority of our customers) truly believe what we do does not require much knowledge, testing, etc. With that mindset, it's no wonder they balk at a $90/hr shop rate. To them, our skillset (and that's truly what it is) is hardly more impressive than a landscaper (someone who mows lawns, I might add, which is NOT a true landscaper)... but WE get to work in an air-conditioned space and sit on a comfy chair, so why should they even pay us as much as the gardener? Needless to say, they are truly ignorant to the hard work I (we) have put into this field over the years. I'm okay with that ignorance, as long as it doesn't cost me... but it usually does.

Interesting to hear what people in other industries think. Perhaps that's why you see so many people buying ebay lasers thinking they are going to strike it rich, then being sadly disappointed when it doesn't work and the jobs don't roll in?

[Neil Pabia]

Neil

I am a one man home based shop. In the past 12 months I have spent over $7500 in maintenance and repairs and replacement of equipment. In your plan have you accrued that much to cover those expenses? Mine is a business, not a hobby so I have to plan such things.

Mike, I closed up my shop about 2 years ago and moved my laser to my home until my most recent divorce and then it went to a friends sign shop and I work out of there. He has a couple of guys working there and I'm there whenever I'm in town and free. I take about 50%of each jobs cost and put it away for repair/replacements. The last 4 years I've put less than $1000 into my machine and it has very low hours on it so it will hopefully last for several more years. I buy all my equipment outright so I don't have any payments, so far I have put enough away to replace my Helix with a Fusion if I decide to go that route but I'm going to let them work the bugs out of them before/if I decide to order one. My laser was bought to make a specific product that I never made...lol, so anything that I do use it for is a bonus.

[Kev Williams]

If anyone gets testy about my hourly rate, I just ask them what their auto mechanic charges.

[Mike Null]

Dan

This is an ongoing debate I have with some others who are more of the woodworking persuasion. Those folks (and I'm sure the vast majority of our customers) truly believe what we do does not require much knowledge, testing, etc. With that mindset, it's no wonder they balk at a $90/hr shop rate. To them, our skillset (and that's truly what it is) is hardly more impressive than a landscaper (someone who mows lawns, I might add, which is NOT a true landscaper)... but WE get to work in an air-conditioned space and sit on a comfy chair, so why should they even pay us as much as the gardener? Needless to say, they are truly ignorant to the hard work I (we) have put into this field over the years. I'm okay with that ignorance, as long as it doesn't cost me... but it usually does.

This strikes me as humorous as when I realized nearly 20 years ago that I was being forced into early retirement and would have to find other work I decided I would buy a laser and market to wood workers. I quickly found that woodworkers were a pretty cheap lot and would provide a paltry source of income. Now I do no work at all for woodworkers and am much better for it.

As you say they had no appreciation for the skills nor the investment. My laser cost more than their entire shop--I know I am also a woodworker.