I am an estimator at a high end millwork company. I am looking at price comparisons for lineal mouldings and was wondering how some or most people price it. We have our method but who's to say if it fits in the industry standard?
(Business and Management Forum)
From contributor L:
Setup charge - we have one for basic ($65 – five-head molder) and use an add-on for difficult setups. This covers the time and test material.
Lineal foot charge - the only time we vary this is for very heavy cuts (bar rail) where we have to slow the feed rate. If the customer wants a lot of molding and doesn’t like to see the setup charge, bury it in the lineal foot price and stipulate a minimum run. (All costs must be covered!) Material cost is a separate issue and will depend on expected yields. The killer here is when the customer demands no sap or wants all clear matched long boards in a lumber that is only available in short lengths with a high rate of defect (character!)! So there must be a good deal of experience on the part of the estimator or he must consult with people in the shop that have used the material and the PIA setups.
Profile grinding to customer's requirements - a basic cost to cut, balance, template and set up the grinder, plus a price per lineal inch of knife based on the size of the bar stock required. There will be occasions when there is a very difficult grind requiring changing of the grinding wheel face (4mm, 2mm or V) deep nearly straight in cuts, difficult blends, copes, etc. Even with CNC templating, some of these will remain time consuming and require money to cover their costs. You can't use averages or you will get the difficult jobs and someone else will do the quick buck jobs!