[TheForge] The Business of Bl;acksmithing, how to charge?

[Jerry Frost]

It's been quite a while since I figured a shop rate mainly due to getting
married, building the house, hobby farm and a longish commute to the
paycheck job. I haven't done much metal work since 96' and haven't refigured
it.

In the mid to late 80's I was charging $50/hr as a break even rate; being a
semi-pro hobbyist I don't need to make a living. In the late 80's early 90's
I charged $60/hr. as a break even rate. To make a living I'd have to up the
rates at least $10/hr. and keep work in the shop.

I never expected nor expect to ever make a living solely blacksmithing,
especially if I limit myself and clientele to an arbitrary time period.
("traditional technique") Once retired I'll be opening the shop for
"business" and will take anything profitable coming through the doors. Want
your kitchen chair repaired? How about a new utility trailer? 300' of ornate
railing? You bet, I'll do it all, within my shop's capacity of course.

My shop rate will probably be in the $70+/hr range. This would be break even
if all I did was smithing but I'm pretty good at fab work, I don't need a
lot of equipment, tools, etc. to do quality work and I'm reasonably fast.
Where I'll make or break is in the bidding. Regardless of hourly rate you
have to be able to accurately bid a job, then beat your own bid.

This is tougher with one off projects so they're always bid at a higher
rate. Production jobs are tougher to bid accurately as you will become more
efficient as you make repeated items so you can't really base a bid on the
test piece. You have to be able to accurately estimate your production speed
and this can make or bury you.

If you get every bid you're undercharging. If you don't get any bids you're
overcharging, either for the job or the quality of your work. On the whole
though most smiths way undervalue their work. Some of the local guys do
really nice work but if you figure just their time they're charging
$6-10/hr. This kills them and anybody else who knows how to charge a fair
living rate.

If you're proficient and can fairly charge the going shop rate, check out
the local auto and fab shop rates, this is a good departure point. Beware of
trying to charge a pro rate if you're less than a journeyman and I don't
mean being able to do everything on the list. I mean Journeyman level, being
able to do high quality work, repeatedly and quickly. You can't charge
profesional rates and take three times as long as a professional or do less
than professional quality. Word will get out and you'll die on the vine.

Frosty
------------------------
If it ain't forged
it ain't real.
Wrought iron is.
The FrostWorks

Meadow Lakes, AK.


----- Original Message -----
From: <switz@mindspring.com>
To: <theforge@mailman.qth.net>
Sent: Wednesday, March 05, 2003 8:05 PM
Subject: [TheForge] The Business of Bl;acksmithing, how to charge?


> I have been a hobby/part time smith for more than 10 years and while I
have never tried very hard to make a living I have managed to make enough to
continualy improve my shop.  When I retire from my current job I hope to be
able to suplement my retirement with forge work.
>
> I know that most full time smiths do not spend all their time in the shop
and that a great deal of time is spent behind the scenes.  My question
(about time :) is how does one charge to ensure that they are compensated
for the time spent on the business end of the opperation?  Also what
percentage of gross income goes toward shop expences and what percentage is
actually profit?  Finally, how much does one charge for materials and labor?
>
> Currently I charge my cost plus 50% for material costs and $40.00 per
hour.  It seems like this should cover non productive time as well as
operating cost while still putting food on the table.  Any idea, thoughts,
or suggestions would be greatly appreciated.
>
> Thanks
>
> John Switzer
> _______________________________________________
> http://mailman.qth.net/mailman/listinfo/theforge
> theforge mail list group photo site is
> http://www.photoaccess.com
> Login:  blacksmithblacksmith@hotmail.com
> password:  anvil
> ___________
>
>
>