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Discussion Starter #1
I am mostly looking for some cons of charging based on a shop rate. I see some pros, but want to double check everything before I make the switch.

I currently price based on a chart of # colors versus qty. I now have enough time studies to where I feel comfortable knowing exactly how long it will take to process a job. So I am thinking of doing away with my complex charts and just quoting based on:

(Hrs * Shop rate)+(Expense/items + markup) = Total Sales

**no fees, it would all add to time and there for take care of itself**

From what I can tell this is going to increase my price for the lower qty items, but keep the high qty orders stay the same. Pretty much telling me that I am not charging enough for lower qty items.

I was also planning on adj shop rate per customer...I would have a standard rate and then a top customer rate of less.

Thanks Troy
 

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Yes, because a shop rate chart already has those calculations built in. Now, what, you will do them by hand for each job? No handy rate chart for the shop or online for customers?
 

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Yes, because a shop rate chart already has those calculations built in. Now, what, you will do them by hand for each job? No handy rate chart for the shop or online for customers?
Ok so you are implying it would be easier for me to adjust my chart and use it, because as of right now my chart is not setup for the same rate. One job may make $100 per hour and the next only $45.

Also Excel works a lot better with a formula then a chart. Either way I will still just enter in my info of qty, colors, color changes, locations, flashes. I have not figured out a way for Excel to go to a chart and pick out a number based on two variables...colors and qty.
 

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Discussion Starter #6
Also when you quote do you make the same per hour no matter if you are doing 15 shirts or 200 shirts?
 

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I recently made the switch. I have Estimate Software and it calculates to an hourly rate of your shop. Very simple. I love putting in the individual shirts with the prices in the background so when someone is standing over my shoulder looking for pricing I just select the type of garment, the number of colors, and so on, then whamo, instant price. When they see this or I convey it over the phone with confidence there is a lot less haggling. Also, you can adjust with a slider, artwork time and how busy your shop is at an instant to raise the per shirt price, just incase they are a pain, and they don't even know it. You are right, my small quantities went up in price and my larger ones stayed the same or a little lower. I love it. Takes the stress out of pricing. You can even see a report of how much money and where on every job.
 

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The problem doesn't seem to be the chart in concept, just that the chart is set up wrong. Having a chart not only simplifies your calculations (because you only have to make them once) it also gives you the option of giving a price list to a customer whereas you'll have them absolutely confounded if you give them a chart that says "(Hrs*shop rate)+(items+markup)". I don't know if you need that for customers, but either way I think it will be simpler to redo the chart, but making sure the chart numbers are appropriate with your (Hrs*shop rate)+(items+markup) formula.
 
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