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Author Topic: "Generally" Speaking, Quoting CNC work.  (Read 10293 times)

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"Generally" Speaking, Quoting CNC work.
« on: September 03, 2008, 08:48:32 AM »
:)
"Push" has sort of come to "shove" and I am looking for some sort of calculator or basic guidelines for estimating CNC work. I only have 2 employees...Mach and Mach. ;)
For instance, there is one piece I make in a manual BP that takes 3 hours. I ran the file through Mach3 (simulated) and it takes about 20 min.
That's  9:1   Would I typically charge the same $ per part as manual ? Or try to find out what the "Other guys" are charging ?
I guess I could ask the customer but that seems a bit sneaky. :-\
Thanks,
RC

Offline ger21

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Re: "Generally" Speaking, Quoting CNC work.
« Reply #1 on: September 03, 2008, 08:57:36 AM »
imo, it doesn't matter what the "other guys" charge. You need to charge what you need to make. Whatever it takes to pay your overhead, and make the profit you want to make.
Gerry

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Offline bowber

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Re: "Generally" Speaking, Quoting CNC work.
« Reply #2 on: September 03, 2008, 10:40:52 AM »
As has been said charge what you need to charge to make a living.
But don't undersell yourself, it's easier to come down slightly in price than having to hike it up.
I presume from what you've said your already established so you'll already have a good idea of what you need to make, I'd be tempted to keep the price similar though as you've invested in the equipment and time learning how to use it.
I'm self employed as well in sign making (CNC is a hobby as I used to be an engineer) and I hate that how much should I charge question, I work it out and then start to convince myself it's too much and before I know it I'm wishing I hadn't got the job because it's not paying enough :)
The only paying job I've done on my CNC was some small parts for a friend and I just said pay me what it's worth to you, for once I was pleasantly surprised.

Steve
Re: "Generally" Speaking, Quoting CNC work.
« Reply #3 on: September 03, 2008, 11:16:00 AM »
Thanks for the input Guys.
I've allways undercut myself in the past on the manual work. Made out OK, but should have charged much more. One customer in particular will tell me if I'm WAY off...and I usually am.
If I can make a part manually for $200.....It seems almost sinfull to CNC 9 of the same part in the same time frame for $1800. But then again...the customer doesn't care how they are made. He just wants good parts on time.
At that rate, Mach and Mach can easily carry the overhead.
One small (undercharged) job has already paid for my first Mach conversion.
Thanks again,
RC
Re: "Generally" Speaking, Quoting CNC work.
« Reply #4 on: September 03, 2008, 01:37:09 PM »
RC,

Sure, you can make the part in 20 min, but, figure your programing time, fixtures, and tooling, and the part quanity.
Usually you need a cad dwg, with all the dim, which you'll probably have to furnish, just to write the program.
One piece can be expensive, but quanity is where the moneys made. If I get a small quanity job, I tell the customer
I have to charge a setup fee. If it's a worthwhile quanity, I'll forget the setup fee. Quanity is the name of the game for profits.
A $10.00 part could cost a $100.00 or more to make 1 part. If your not going to make anything, it don't pay to do it. Remember,
Nice guys finish last.  I hate myself, when I lose money on a job. Some customers will complain no matter how cheap you make it for.
 just my 2 cents.

Ed
Ed VanEss

Offline Chaoticone

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Re: "Generally" Speaking, Quoting CNC work.
« Reply #5 on: September 03, 2008, 02:10:54 PM »
Quote
If your not going to make anything, it don't pay to do it.

Yup, if your customers want you to loose money so they can make more, tell them you can go fishing for free and that is where you'll be next time they need something if you charge to suit them.

Brett
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Offline docltf

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Re: "Generally" Speaking, Quoting CNC work.
« Reply #6 on: September 03, 2008, 03:52:57 PM »
RC

when running a one man shop you might consider the WIFE FORMULA. say you charge 100 for a finished part. take 50 and give it to the wife.will the 50 that is left protect you and the shop.
keep that thought in the back of you mind when you price a job.you know what you think is a fair price for your services and materials,then add somthing for the wife.

P.S. don't forget the girlfriend.

bill
Re: "Generally" Speaking, Quoting CNC work.
« Reply #7 on: September 03, 2008, 05:02:27 PM »
WIFE?   ;D

ONE bunch of bananas is pretty cheap.   :D

Ed
Ed VanEss
Re: "Generally" Speaking, Quoting CNC work.
« Reply #8 on: September 03, 2008, 05:05:23 PM »
WOW....Good points,
I hadn't thought about the preliminaries prior to actual machining....thanks Ed.
Brett...I used to LOVE to fish.....I'll be sure to leave my cell at home.
I like your formula Bill. A couple of jobs that I really didn't want came to me for an estimate. I figured 50%  over what I would normally charge, then doubled it. Had to do them anyway. The Wife made out good on that one.
Just have to see how it goes.
Thanks ALL !
RC

Offline Sam

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Re: "Generally" Speaking, Quoting CNC work.
« Reply #9 on: September 03, 2008, 05:53:21 PM »
Ed has allot of good input in my opinion. Sounds like he's "been there, done that". I think everybody sells themselves short at first, because allot of cost are just out of sight, out of mind, until they bite ya. Part of the learning process I guess.
Quote
If I can make a part manually for $200.....It seems almost sinfull to CNC 9 of the same part in the same time frame for $1800
Ouch!!! To me, that's the totally wrong mindset to be in. That's the whole purpose of even having a CNC. Make more parts in less time=more money in my pocket=more toys....better living... the list goes on. But hey, if it really does make ya feel that bad, you can always keep doing them manually.  ;D The CNC and your continued dedication to learn how to use it efficiently is for YOUR gain, not the customers. Make all the money you can when you have the opportunity. Sometimes the opportunity wont be there.  I'm not trying to advise that you overcharge by any means. Just keep in mind it took allot to get where you are now, and when the rewards start to come your way, don't pass it on to somebody else. Just my $.02
"CONFIDENCE: it's the feeling you experience before you fully understand the situation."