Target Rate

[Walt]

I have a target rate per hour that I shoot for. If I'm not making it, I'll pick up the pace. If I'm too far ahead of it, I'll slow down a little.

But what do you do when you are way, way over it. Perhaps double or more the norm. I have a couple of (non haggling) regular customers like this. I've been putting a 10-15 discount on the bottom line based on volume - and still it's more profitable than an average job. Am I shooting myself in the foot? or being honest? What do you do?

 

[Jeremy]

Call it gravy & complete the job efficiently. It helps make up for the "I should have charged a lot more for this job" jobs. As long as the price was agreed upon prior to starting the job you've just left $ on the table but I'm sure the customer appreciates it...

 

[John Olson]

This brings up a good questions. What is your actual cost per machine hour? I have been having the guys here go home and take out their calculators and figure out their true cost per hour. (Based on 5 hours of run time per day) Everyone is pretty shocked to see what their true cost are. I think I will spin this off to its own thread as well...

 

[Brian R]

As long as you are not screwing the customer, you're ok.

Do great work for the good money.

Do great work for the ok money but don't over do the frills