how to NOT SUCK at maximizing your shop rate | Make Money Welding

[@pdependejo8274]

I think a messy shop like yours sucks.

[@42Fab]

@1:52

[@trickyricky12147]

Better than nothing

[@cavemanjoe7972]

@Penelope Lares That's funny, because nobody cares what you think.

[@josimon6229]

Messy fab shops are where shit gets done.

[@joederue9402]

His dirty shop shows he is making money.

[@jimbo2487]

Free market man! I knew I liked you. No excuses for you’re valuable time.

[@trickyricky12147]

Well said

[@zacharytuttle5618]

Your*

[@stcfabworx1687]

Thanks for being real! I have a 5x10 cnc table. Tig welders a service body truck with a gen welder I’ve been at it for 5 years off and on. It’s hard to bid jobs well it’s been hard for me but not anymore! I’m defiantly raising my rates. I was welding at a shop that charged 150 hr one of the formen left his bid notes at my station. I was building a fab table. A 4 x8 table. 3/8 “ top with some flip down half sides. The company having it build paid 4K for that table I saw he charged for materials plus 100% 8 hrs at 150$ hr and 10 at 100$ hr. I was blown away man. But they stay busy there. I. Ended up quitting and now working for a lady who runs a decorative handrailing blacksmithing shop so that I can learn and absorb as much as possible to use for myself and my hopefully successful buisness. Thank you for the videos. Definitely subscribing and following your journey! Also I love your signs. They looks badass!!

[@weldmachine]

Can not argue about anything you mentioned in this video. Information is the most expensive tool you will buy. You give it out for next to nothing. So it should be very helpful to others watching this. Thanks for sharing your passion and your thoughts. Peter.

[@42Fab]

It isn't worth less to me after it is shared

[@jakeaustin901]

@@42Fab beautiful 😥

[@SHARE577]

I’m so proud of you brother. Know your worth. This job is NOT easy and you make it look smooth. People can think whatever they want, but you are taking a risk to feed your family and have a business running.

[@douglasgoldstein8990]

I ran my own custom gate and metal fab biz in Las Vegas for 5 years and just like you learned to up my rate from my beginning days. Quality of work and customer satisfaction mean I STILL get calls for work today, solely from referrals, even after I haven't been doing my biz for almost 6 years now.

[@42Fab]

I stopped doing security cameras 7 years ago, still getting calls too.

[@douglasgoldstein8990]

@@42Fab Good work ethic and people skills are dying qualities these days. I'm in Oregon now, and do my own thing, basically dabbling in multiple revenue streams, because up here the average mindset is to just throw up something cheap and quick...nobody wants to pay for a high end entry gate.

[@peters4067]

Blunt and to the point! I like it! There’s a guy near me, he charges £100p/hr (Google says that’s 125.50 doll hairs) for line boring work, I’m in Northern Ireland 💪🏼

[@rodneyelloitt7267]

Thanks, Your spot on I've been doing this for 24 yrs. and went thru the same problems. You forgot the time wasters that want your knowledge for nothing.

[@Khaltazar]

You're right about billing too low where people accept it too easy. I don't have a welding shop, but software and the customers I have had accepted my bids without question and gladly paid my 50% fee to begin work, but when I started out a lot of them cancelled when I was about 75-90% through a project and if I wanted that money I would have to sue for it. I switched to a milestone bid where customers bring me a project and I lay out milestones in the quote so I waste as little time as possible. I think a good thing to mention for anyone trying to make their own business is letting them know they will fail in the beginning, but it gets smoother as you gain more experience not only in your trade of choice, but in dealing with customers and contracts. It is really easy to get discouraged in the first few months of being in business yourself.

[@JesseHires]

I just paid a shop $165/hr plus tax to work on my rig. $100/hr sounds pretty reasonable.

[@Mario55555]

I'm not even in this industry and found this video extremely valuable. Liked and subscribed immediately. Keep em coming!

[@trevorhoward3328]

Appreciate you putting this video out. Most people don’t have a clue how to factor all these things in and they don’t charge enough. As a Handyman I started at $45 and hour lol and that quickly jumped to $65. Now it’s $85 and most of the time I don’t tell that to people I just use it as a metric when figuring out total bids

[@billygoatfabrication4809]

Hello. My name is William Watters. With Billy Goat Fabrication. I am 25 and I am starting a small metal fabrication Business. I'll be building everything from furniture to full custom thing. I am a month or so from starting my business in my free time. I have a regular job 40+ he a week as a produion fabrication. Building most everything having to do with metal. Anyway. I will become a patron in the next week. This video has helped me alot with my planning and staging. Thank you very much for your time and your helpful videos. I can't wait to use the patron perks.

[@nickbedard1623]

I'm in college for Mechanical engineering right now, but I also am starting a small shop. Just about to be signing a lease on a larger space. Great stuff man!

[@bigwestreviews4933]

Hopefully you quit engineering lol. I wish I did when I was your position. I’m doing well now and able to charge $300-400 an hour for my time but I enjoy fabricating way more.

[@jdepew]

This is the best shop rate video I've seen. John Saunders (NYCCNC) also did a video outlining how he sets his CNC shop rate, with details and spreadsheets. This video gives you the high level. That video gives you the nitty gritty. Cheers

[@AdamKing60]

I started my business about a year and a half ago and while I didn't have a problem deciding on a shop rate, I did (and still have, even if slightly less) have an ongoing internal battle with quoting jobs. I don't want to rip people off, but first and foremost, I don't want to rip myself off. After being told by a few people in the beginning that "I have good prices" or by a guy I made some custom beam supports for who owns a business himself that I'm not charging enough. Now I'm much more aggressive with my quoting, but it is still a learning process.

[@abm2958]

What you really need to do is add up all of your fixed costs / divide it out by how many billable hours per month you can reasonably work, add in profit, add in what you need to make per hour to reach a baseline, with this info you can break jobs down into smaller pieces and figure out the cost for each step.

[@michaelclark6610]

I love watching videos from people with your personality. I admire the fact that you’re confident in your abilities and want others to gain those confidence and abilities.

[@paulmarcoux2728]

Great video. The mental block on the hourly rate is a real thing! I have a friend whos a framing contractor who only charges 30/hr. I keep telling him he needs to up his rate otherwise he's always going to be stuck dealing with the penny pinchers and tire kickers. Thanks for sharing!

[@jennieanddavis]

I think we're gonna like this series!!! 😉😉💸💸💸💸💸

[@jaredhammonds8255]

Good to see you here!

[@kr4dh4x0r]

I wouldn't worry about offending anyone that would click with the title of this video. The people that take offense to this typically, in my experience, don't have the skills/desire to do hard work.

[@c4call]

Your understanding of basic business and economic principles gives me hope for this world. I'm subscribed, bro.

[@northernsmith]

I started out at $50 per hour shop rate. I learned my lesson on that making knives. Love the video!

[@davidoleary2452]

Right on man, every point you make resonate's quality content as always

[@Thaipeople196]

I've found that some people just don't want to pay for anything. They waste your time and that cost you money. I feel it's important to do your research to get your pricing right the first time. Because once you do a job at a certain price the customer feels your trying to up charge them for the same job when you realize your mistake. I learned this the hard way.

[@mitchellgarrett5124]

America is blessed to have good people like. Thank you for every minute of your time gou share. Thank you!!!

[@bobbymcbulge18]

Couldn’t have said it better myself. Straight forward, love it..... you rock!

[@johninjeopardy9283]

"I'm a die hard libertarian, and I believe the market should solve problems" ....SUBSCRIBED! Now what were we talking about again...

[@josimon6229]

Exactly, this is the first video of his I've watched and that earned a like and a subscribe.

[@kevinmartinez6998]

Same. I'm also a welder and libertarian

[@KriegerKrieg]

Right on, Taxation is extortion.

[@mackenziehaines9458]

Same haha

[@alextrezvy6889]

The market not always solves the problems. Often they can sell you a device which contains the planned obsolesce, and they don't tell you. This is not uncommon nowadays.

[@dropdead4734]

Dude this video helped a lot. Some of the people on here are not gunna put in the time to build that’s why they are downing the video but truth be told there’s a lot of good info in the video. Keep it up

[@3dviewlogic]

Appreciate your frankness. your experience will help me a great deal in using my new CNC plasma. I am new to your channel but will definetly keep watching to see what else I can pick up from you. I truly enjoy learning from a hardworker and hands on, no nosense man. Also, these videos take a great deal of effort and time to make. Thank you for your time!

[@trophbrwntrouthunter]

Just found you, great video. I don’t mind your directness, that’s how men should speak, thank you.

[@jasmin7763]

What a great honest video. It's a rare thing to come across such useful and honest advices about anything really. Thumbs up man!

[@timfoster5043]

Excellent advice all the way around. I was just passing along some of the same to a guy starting out in his business.

[@darylpoe8819]

Libertarian! Been following you for a while. I KNEW there was something I liked about you!

[@42Fab]

continuously plotting to gain power so we can leave you the f- alone

[@microstopitman]

my name is Fred Quinn i like this video and i truely apreciate you shareing your thoughts and experties about your welding fab shop i welded 0ver 30 years stick n mig i worked as an strutural steel worker and welder fabricator and installer /pipe fitting elevators installs /this is very hard work and it really cost a lot of money to do diferent jobs and a lot of effert and dedication /so i give you 2 thumbs up and wish you the best in your career and your business keep up doing what your doing and may God bless you always....

[@ChrisB89071]

I was just getting pissed off that I barely make anything and then this video pops up! Good timing

[@mickyc4003]

You had me at Libertarian! LOVE IT!!!!

[@42Fab]

Fighting really hard, to leave you the hell alone.

[@johnnywayne7654]

Great explanation, well said and I hope people understand that this info is invaluable. Thanks for sharing, one of the perks of the technology and social media. It's one of those "...I wish someone would have told me that 20 years ago ...." moments, and hopefully everyone that sees it takes from it as such. 😎👍

[@rafatrill]

This a good video thanks man. I had a conversation with my dad about this I told him I wont do a job for less than 50 bucks he looked at me like really. Everything adds up is what he told me. I told him would u rather hire two welders to do the same job twice and pay twice or hire just one skilled welder pay once and get the job done right and never have to come back to it again. Lol he still try to argue with me lmao

[@42Fab]

my minimum is 1/3 hr or $30. I probably do that once or twice a month, generally past customers who just need something that's broken welded back together. 2hr minimum on mobile work.

[@rafatrill]

@@42Fab kool I've been wanting a plasma table but I dont have lots of clients yet. Little steps, well 50 is my price because I live in dallas texas houses are like 120k+ that's not a new house either, new houses are like double of that.

[@rafatrill]

@@42Fab do u have a video on ur plasma table and how to use it? How did u learn how to use it?

[@emailausdrucker]

I charge $90/h as well. Also mental blockage to go over the $100. There since end of 2017. I think, it is time. I suck.

[@42Fab]

As it isn't one others can buy, I haven't done a video like that. I am self taught

[@cavemanjoe7972]

I actually wouldn't mind seeing what tools you had in that first toolbox. I've always liked seeing throwbacks of what people started with.

[@bertiekoch481]

Brother Wow That realy Shed Some light onto all my Questions regarding This Subject!! Much Love From South Africa

[@ACNailedIt]

Real talk man, that just motivated the hell outta me.

[@42Fab]

go get it. Give the customer what they want while earning what you deserve!

[@jasonbushis]

Another great video, Richard. Thanks for all the useful information. I'll try not to suck when I'm read to start charging.

[@brandonatallian2128]

Your videos keep popping up and I've watched a few....this one sealed the deal, liked and sub'd! Keep up the good work man.

[@WildmanTech]

I did a $100 table leg job today, but the guy paid $200 (by choice) because he txted me last night and asked if I could have it ready by noon. Then he didn't show up tll 3:00.

[@42Fab]

Typical lol

[@EcoMouseChannel]

Shit... that happens to me all the time. Except, in my case they don't show up until a week or two later.

[@trickyricky12147]

@@EcoMouseChannel that should get to the point where you leave the project sit right outside the shop LOL

[@stevenemes3937]

I'm just about to start a little fab shop at home, I've done it before. My starting rate will be $50 I'm in Australia though so it's a bit different. Great videos man I have learned a lot and will continue to learn more as I go.

[@oohsam]

I'm also in Aus man and I have a little shop at home. I started charging 50 but you find that you get really bottom of the barell work. Once I put my price up a bit, if the Jb was crappy it still paid well, but I found the crappy jobs went and I was doing better jobs. Still trying to get the price right but most people are willing to pay when I throw a number (even if I think it might be a bit high).

[@stevenemes3937]

@@oohsam I have a few contacts I can make stringers for from my last job plus other good work as well. I'll put my price up once I get a bit busy.

[@Nopaytience]

Definitely more of this series man! Weld on!

[@MrRussianProduction]

keep hustling my man! im just starting on my own too, thanks for the little tips👌

[@ethankoch7147]

I agree and feel like I function on the same mind set as what you said in this video. I do though have a problem with retaining customers because of price costs. I’m more into the heavy machinery repair side of work and dealing with rich owners that want cheap labor is what makes my rates difficult, I don’t give hand outs but getting consistent work from them seems to be the issue.

[@42Fab]

You don't want consistently cheap work

[@chaseames5762]

liking these business tip videos. Maybe a few more in the future?

[@42Fab]

Gonna try for one a month or so

[@dcwshoreline5416]

Absolute Stellar Video Rich, Merry Christmas!

[@WoodenCreationz]

Great Tips man! Glad business is well and you have figured out the secret to making it work!

[@tonytully4943]

I also learned some of these things the hard way. Thank you for taking the time to make the videos

[@WillPatagonia]

This is experience talking. Invaluable! Thanks for sharing, I'm starting and this is absolutely helpful! Subscribed

[@AntonioClaudioMichael]

Very good advice and these things have helped me make my business work for me

[@rockerpat1085]

I charge 95 dollars an hour in my auto garage!!! That's for regular car repair, but for restoration work I have started telling people that if they want me to restore an old car or truck my starting price is 35 thousand dollars!!! If they can't or won't pay 35k labor for a restoration then I won't do it!!! Keep Rocking!!!

[@blakeaustin8835]

I have a therapy studio down the street from you and this is very much applicable!

[@kestergascoyne6924]

Most helpful channel on this subject I've found so far. Thank you.

[@joshuadelisle]

I like the honesty, I would hope your customers don't see this video though. I'm very similar in that I charge the value of my service and not the going rate. I use a different language where you say 'billable hours' I say 'productive and non productive hours'. I find that I can also be cheaper than the competition yet earn more money because I'm more productive, getting the right equipment for a good price also helps productivity and a quick return on your investment in that equipment. I like to keep a mind on how much a piece of equipment owes me after buying it, it helps me choose wisely and not just buy big boys toys... Like your videos keep em coming. Cheers J

[@Just_Wanna_Drive]

That was much needed man, thanks 🍺

[@rtate5098]

Im getting ready to strike out on my own. I ll take all of the advice I can get. Great video, you got yorself a sub!

[@AntonioClaudioMichael]

I agree with the you want your rate were good customers will pay and either cheap customers or customers that cant afford it wont pay I agree I have gotten better customers and business from my rate being at the right number

[@garyyorke1080]

Pretty good advice there fella worse part is the bit you didn't mention ..that customer that takes all your time talking about shit and his her job only for you to quote and not get the job as they never really wanted you to do just give advice how they can do it.. Makes a lot of sense adding it all up then working out how the rate is at that figure ..

[@Sabestooo]

Very valuable information for starting companies! thank dude

[@AntonioClaudioMichael]

Great video 42fab

[@YouCanMakeThisToo]

"Until next time, don't suck" Best closer ever.

[@jcporosity4764]

Great advice. I charge 60 hour at my shop. When im doing mobile i charge 70 if it 20 miles alway from my shop i charge 75 to 80 mobile

[@deckmonkey1459]

You are making Home Depot wages at that rate. Call around and see what everyone else is charging. Up here, any trade is $90-$120 Canadian an hour, $25 truck charge and mileage outside of city limits, both ways. After 5 or weekends, it's double. At $90/hour shop rate it's not worth me going into business for myself. It's not just everything Richard said, there's also bad debt, lots of stress for you and your family and the risk you take starting the business because most fail. If a car dealer can charge $125/hour when they pay their mechanics $20 and only what the book quotes, a business owner/operator can charge a $100 for quality work.

[@turbolaser24]

Good video, just started my business 11 months ago, I'm mainly doing online sales as of now, I want to start doing local projects more but its nerve racking. By the way I'm in Oklahoma as well

[@42Fab]

Cool beans, where about?

[@turbolaser24]

@@42Fab I work out of my garage as of now, I'm off nw expressway and council. I started following you on Instagram check out my page, I mainly do custom drag style minibike frames and similar stuff.

[@adambergendorff2702]

I hope you don,t get tired of me saying great video!

[@42Fab]

I won't, thanks

[@michaeldubya]

Agree 100%, owned a bicycle shop in a upper middle class suburb in the Houston area from the early 90’s till early 2005. Was a small shop, with experience back to the mid 70’s. Forgot more than most “mechanics” will ever learn. Got plenty of unsolicited advice (read, you don’t have what I need right now). Got a offer, a good one from a chain. Went back to my first love, training horses and contract ranch jobs. Making more money less overhead AND take the jobs I want. My clients understand upfront that they contracted ME. I also have a barn management business and employ combat veterans suffering from PTSD. We are well established and after 5 years get more calls than we can service.

[@stanwooddave9758]

As a old body & fender guy, who mostly worked piece work. For those that don't know just what is piece work, it's when a person and a shop owner agree to terms of employment based upon a percentage (some where between 50 / 50 -- 60 {shop}-- 40 {me}) of the total labor cost of a repair on a vehicle. So if the repair calls for say 16 hour's of repair, if I can't do the repair in approx 50 percent of the allotted time, I was losing money. A saying that still holds true today, You Win some, You Lose some, and you take a F-ing BATH on some. You do your best to keep the Baths to a very minimum. You want to talk about Self Analysis, Job Analysis, Profit Analysis, a Bath will do just that very fast, thus the School of Hard knock's. Just so you know, not every autobody guy is capable of working piece work, comes down to training, work / life commitments etc.

[@42Fab]

I've gone $3k deep in a $1200 project. Miserable, but I finished it on principal

[@havocgarage3087]

Thanks for the good info and the encouragement! I'll be tuned in

[@davidkelley511]

When you are working a job can you typically charge a lower rate for more time? or is time usually non negotiable?

[@DonnyBwelding1]

Love the channel and advice ..thanks again buddy. Blows my mind where you find the time

[@AntonioClaudioMichael]

Good advice and informations 42fab Brother

[@rock3tcatU233]

This guy is living the dream.

[@portalwoodworks8499]

Awesome and interesting advice there Richard. Keep bringing the knowledge to the masses, we need more.

[@EZ_shop]

That's was very direct but honest advice. Loved it!

[@darrinplank]

being in KansasI've been struggling with this and this also helps.

[@jonwatte4293]

Ha! In San Francisco (or nearby) no home is under a million and a typical thtre room rancher is two. We don't get to charge nine hundred an hour, though. (Although maybe I should?)

[@adambergendorff2702]

I hope you dont get tired of me saying great video!

[@JustAnRT]

Great video and really useful information . Thank you. I'm in the early stages of getting started myself, and this has helped me with settling on a starting point. Keep up the good work.

[@ShopJock]

I like alot of what you are putting out there but....look at overhead cost which includes your salary. Then budget increases and that tells you how much to charge. Then add in your profit margin and move forward

[@dainasites3260]

Awesome advice. Thanks for sharing the hard stuff. Keep em coming.

[@jed-henrywitkowski6470]

I love the woodwork!

[@ryanwindsor8379]

Another thing I learned. Dont lower your rate trying to "help someone out." Always ends up biting you in the bum.

[@RideRevival]

This isn't a problem I've had. I threw out a high rate to begin with and when it wasn't working I lowered it a bit until it wasn't turning customers away. What I do still have trouble with is when I make a piece of steel art for my own enjoyment and decide to sell it. I can spend an hour on a small piece of art but if my rate is $80/hr that doesn't mean anyone will spend $80. It might be a $35 piece. Art is a different animal I don't understand well.

[@42Fab]

no one does. Unless you're mass producing or willing to sit on it, it's a losing game IMO

[@drewt3210]

The artist in me is with you. They don't call us "Starving Artist" for nothing! Realizing "milk money/fill-in" jobs between art pieces are essential. Even the Old Masters did portraits to eat. Best, @HoneyOnWales

[@8deuce9]

What were some of the first thing you started doing? Has it always been mostly signs, or was it something completely different?

[@42Fab]

Chicken coops, greenhouses, furniture, signs, it was an evolution.

[@joederue9402]

Great job. Joe from Detroit

[@WorksbySolo]

Nailed it, man! Great video and good advice!

[@johnsabarese7103]

This is a problem for me I think I suffer from the “I don’t think my quality of work is worth top dollar” On top of that I only do it on the side and can’t devote the hours that you invest. My pricing has always been materials x3 no labor.

[@cavemanjoe7972]

Materials +30%, and then your labor per hour, or price per job.

[@Togri121]

i think you are doing a great job . and a big thank you cause i am looking at the momeent how can i start small too !!

[@TomofAllTrades]

Good advise 👍🏼

[@marctardif9300]

thanks for the good video!

[@msart000]

I learned that always study your project before giving any quotes.. And most important, I've always ask... WHAT'S YOUR BUDGET !!!!!. before wasting your time on anything.. Very important.

[@joshuafatboyswentzel2564]

Awesome video bro!

[@rulane]

Great commentary!

[@83metalcraftllc52]

You have to take every situation into consideration. All Bill's, budget, hours etc. And honestly, if the person is talented, then a couple percent beyond the normal markup for the name and reputation, as the company is a brand.

[@austinpruett3767]

More of this pls

[@bmlennox]

add your employee benefits...health insurance, retirement/pension fund,, life insurance, business/liability insurance, business licence. If you drive around a $60k truck over 10 years that is $6k/year everything adds up

[@42Fab]

Yep, I realized too late I didn't hit insurance and retirement, they are about $8 of my shop rate

[@bmlennox]

when you are a small business owner everything is on you!! one of our new trucks died and the shop had it for 30 days!!! if the truck can't roll you cannot work-or lease a truck for $100 / day@@42Fab

[@thenetwerx]

Great stuff man!