Labor Pricing HELP

[Sberry]

If I am not mistaken Henry Ford had a day job while he was building the first of his cars?

[jamscal]

I like reading everyone's experiences so keep it up.

A couple of thoughts:

In some areas the government/government agency paperwork and requirements is enough to stop any new business from starting. It's best to start one and then sort through the mess as you grow.

My area isn't bad, and I started 'legit' and have insurance, but I've had several large jobs where I wasn't asked the first question about insurance. Of course most small customers don't care either.

There is no one right way to start a business. Some people will take the big plunge and make it, some won't. Other's will keep their day job and make it, some won't.

Pricing?

Take your fixed monthly overhead (which might be very low if you do it on the side), and divide by 176. That's how much per hour your overhead is going to cost. Then take the hourly rate you need to survive and add it to that. Materials, add. Consumables for job, add. Fudge factor, add. PROFIT, add.

Fixed monthly overhead should include advertising and general costs of doing business.

Don't forget taxes.

The above is very simplistic and general. You'll have other expenses. Just make sure you TRY to think of all your costs and don't do it for less than the amount you come up with.

You might end up with a $5000 check, thinking WOW! and then start paying out of that until there's very little left...then you think: WOW!

Good luck,

James

[SinGear]

Speaking as the legit local, you actually do need a business license if you are going to do this regularly, no matter how much you make in a year. You need a contractors license for any job, or part of a job, over $750. You must have a bond to get a contractors license. There is also a bond you must have for the AZDOR, just to be sure you are paying all your sales tax.

From all the research I did I didn't find anything stating any of this was required, despite the popular opinion I am taking steps to do this the right way, so if there is a link or resource that you know of and could pass my way I would appreciate it.

Thanks

[SinGear]

So I am not full of SH!T one is required to acquire bonding and licensing and foolish not to have insurance.

Hey, if your right I'll be the first one to admit it, I have no issues owning up to something if I'm wrong, but from the research and calls I made I could find nothing that required any of this, not saying it's not a good idea, or that some customers wouldn't require it, but nothing that said the state required it.

The way I see it you guys have nothing to worry about it, you all sparked an uproar like I was going to take over the oworld of welding, if your good and skilled at what you do it doesn't matter how many hacks start up in my experience in my field anyway, because they'll fizzle out and those people that bailed for the cheap sh1t will be back at your doorstep asking for bids.

Good luck to you and any small business owner, it takes a a lot of nut to take that leap, not knowing when and where your next buck comes from, I grew up in that enviroment.

[Broccoli1]

From all the research I did I didn't find anything stating any of this was required, despite the popular opinion I am taking steps to do this the right way, so if there is a link or resource that you know of and could pass my way I would appreciate it.

Thanks

http://tw.yumaaz.gov/WebWare/Default...sage=1560&t=-1


You do business- You need License

all dem little Guv'ment hoops- jumped just like a Circus Poodle too

add an emplyee- F**k me- More hoops- but these cost more $$

Fire an Employee- F**K me- god **** nudder hoop.

[SinGear]

http://tw.yumaaz.gov/WebWare/Default...sage=1560&t=-1


You do business- You need License

all dem little Guv'ment hoops- jumped just like a Circus Poodle too

add an emplyee- F**k me- More hoops- but these cost more $$

Fire an Employee- F**K me- god **** nudder hoop.

Thanks Ed, don't live in Yuma but I'll go rut through the Avondale website and see what additional stuff I need.

[Sandy]

Thanks Ed, don't live in Yuma but I'll go rut through the Avondale website and see what additional stuff I need.

Many of the licensing requirements are through the state and not necessarily the community of interest.

Here's a site a couple of different ways.

http://www.azroc.gov/l_gen.html

http://www.azroc.gov/l_class.html

I should edit to add that a business license and a contractors license are two separate items. You probably already know that.

[starweld]

So, what are everyones rates?? Full or part time>>

[SinGear]

Many of the licensing requirements are through the state and not necessarily the community of interest.

I should edit to add that a business license and a contractors license are two separate items. You probably already know that.

Yes I do, but thanks any and all information is appreciated, and even if it isn't something that helps me, then maybe it helps the next guy. I'll check out those sites and thanks for the leg work.

[FATFAB]

Hey, if your right I'll be the first one to admit it, I have no issues owning up to something if I'm wrong, but from the research and calls I made I could find nothing that required any of this, not saying it's not a good idea, or that some customers wouldn't require it, but nothing that said the state required it.

The way I see it you guys have nothing to worry about it, you all sparked an uproar like I was going to take over the oworld of welding, if your good and skilled at what you do it doesn't matter how many hacks start up in my experience in my field anyway, because they'll fizzle out and those people that bailed for the cheap sh1t will be back at your doorstep asking for bids.

Good luck to you and any small business owner, it takes a a lot of nut to take that leap, not knowing when and where your next buck comes from, I grew up in that enviroment.

So many including your self have missed my point. If we expect the people running Freedy Mac or Fanney May or AIG to do the right thing then we must as well. If you expect your kids to follow the rules of YOUR house then they must see you following the rules of the country.

In the end you likely won't affect the world of welding any more with or with out all the proper papers, nor will I.

Right is right?

Business especially small business was described to me this way. Every day you take out the family jewels, place them on a chopping block and first up is the gubment. They get a few swipes, next is all the other parasites, next are your suppliers, then your employees (the employee gets to swing from the all day long)your customers get a swipe or two.

At the end of the day you pick them up and go home to have the family kick the a time or two (just to help the healing). No one is on your side except you.


If you concentrate on sound business principles you increase your chances greatly.

Honesty is your best friend, a good contract is always a win / win. some times you will win a lot more than (you) think (you) could.


The times you take a bath doing a job(pay to do the work) are your BEST times to learn. Pay attention, figure out how it happened and put some process in place to prevent it.

TJ