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By klackey28
#16932
I'm just starting out and wondering how do i figure out what i should charge for my work. I'm going to try to focus on automotive upholstery.... probably some boats. I have no idea how long it takes to do a bucket seat, a bench seat, or any other upholstery work. I just finished the lucky needle classes a couple days ago. Thanks!
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By JimmieJoe
#16933
For automotive, I typically charge the same as the dealer, but include removal and install .
By klackey28
#16934
I'm more interested in complete interiors in muscles cars and street rods. Not interested in doing anything with air bags.
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By Rhonda
#16936
well the first thing i do is figure up all the material cost. Dont forget about thread and needles , electricity just an estimate of those , the time you spend thinking about , lol sometimes i can drive myself crazy if something is not working out right . then pay yourself for the actual time spent with a tear down . pattern work. You get the picture! i pay myself an hourly wage , if i feel the cost is to high i might readjust! depends on how fast i can work !
By MalcolmM
#17029
Your "shop rate" has to be higher than your labor rate to cover your business overhead. Materials are easy enough to add up for any job with stock supplies like thread, needles, foam, fabric add a reasonable mark up. Overhead is all the costs of running your business but not your labor rate for the job, but will include your labor for actually running the business like accounting/billing, tax preparation, marketing, estimating jobs that you don't get, cleaning the shop, maintaining the equipment, buying the equipment, paying shop rent, utilities, internet, liability insurance, etc, etc, etc. Your shop rate should be 2~3 times your take home pay or you will go out of business at some point. If you have employees you should be billing them out at 2~3x what you pay them, including benefits, workers comp, etc because you are providing them with a place to work, equipment and regular pay regardless of what your job flow is. Many "hobby" businesses cannot charge enough to cover the overhead and the owner will have to take less pay as a result. It it's supplemental income this may work for you, but if this business is your only way to make a living you have to earn a profit, beyond what you pay yourself. If you are in an area with intense competition making a profit is tough as there will always be someone undercutting you, but this is hard to prove as prospects (customers) often lie about money and will tell you anything to get a cheaper price. They don't care if you go out of business right after you deliver their job, so be careful when a prospect tells you they can "get it cheaper" somewhere else. That may be true, but often it's not. All businesses in a small geographic area will have similar costs so anyone charging 1/2 is loosing money, do you want that person to be you? I'm OK with loosing some bids for jobs as that's just part of the system we all work in. There are no guarantees of a profit when you own your own business, but it is a guarantee if you do not make a profit you will go out of business at some point.
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By BigRig
#17030
@WILD BILL , spot on and billing $135.00 hr barely makes it.
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