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Some questions about how to charge for cnc services

10/12/14       
Scott Marshburn  Member

Website: https://www.youtube.com/user/ecabinetstips

Hello everyone. I was asked to do some research on outsourcing our cnc router services. We are interested in expanding our services to include machining other shops sheet stock. We would like to find out how other shops that provide this type of service charge and how much. Do you guys charge by the sheet if so what do you charge not including materials? Do you charge by the square foot of cabinets? If so how much? Do you charge by the hour and if so how much?

10/22/14       #5: Some questions about how to charge ...
Dean Brower Member

You have asked a bucket full of questions. The answers to those questions you will have to come up with yourself.
The basics are labour + overhead + profit. Or how desperate are they + what the market will bear +

Rule of thumb is never and I mean NEVER leave money on the table and don't be shy when it comes to getting what you are worth. (just be sure your worth it)
Every customer you can get to outsource any cnc work will be different. Some will be cad illiterate, and you will have to spend time coming up with the geometry yourself. Some who have some basic cad skills will provide you with cad drawings that are just plain old terrible and you will spend hours cleaning up. Others will keep changing their minds and will take 2 to 3 time longer than you thought.

My self I change by the hour. Here is how it works.

Customers book a time slot. They pay for that time if they are ready or not. If they don't book a time slot see below.

All customers supply their own material. If its lumber I want it rough and prepare it myself at my hourly rate. If it's so bad I reject it. If for some reason I am supplying the material I make sure they know it will get marked up.

Everybody pays COD I am not a bank. For those that forgot a cheque they get their stuff when I get my cheque.

I have 4 basic price structures.

1. Regular rate = work it in the flow of things.

2. Emergency rates = I need you to do this ASAP because I (customer) failed to plan ahead so put my stuff ahead of everybody else.

3. Extreme Emergency rate = drop everything your doing and do my stuff and I'll have somebody wait for it.

4. Super Extreme Emergency rate = I'm willing to pay you whatever you want to stay up all night and work round the clock for days on end because ______( insert some made up reason.)

Surprising enough most customers fall into the 2 or 3 price category. And sadly enough I would say that at least once a month there will be somebody that will be a category 4.

11/9/14       #6: Some questions about how to charge ...
Brian

Somewhat depends on your equipment and what your production capabilities are. $100 per hour is not unreasonable. You will spend time on the geometry, period. We can cut the average kitchen nested base in 1/2 hour machine time. They provide the material no exceptions, Payment in full before the first piece leaves the shop, no exceptions. If their geometry is good it is not expensive, if not they pay for your expertise.

11/10/14       #7: Some questions about how to charge ...
Kerry Fullington

Brian,
Our "average" kitchens are between 25 and 30 sheets of material. What are you cutting in 1/2 hour?

11/10/14       #8: Some questions about how to charge ...
Scott Marshburn  Member

Website: https://www.youtube.com/user/ecabinetstips

I was wandering that too Kerry. I sure would like to see this machine in action that is if it can indeed cut an average kitchen in hour. In our shop that would only give the operator a few seconds to unload and load a new sheet at best.

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