HOURLY SHOP RATE SURVEY

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WHAT IS YOUR HOURLY RETAIL LABOR RATE? (in US $)

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Mike Labbe

Mike Labbe

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JANUARY 2005 POLL & DISCUSSION - WHAT IS YOUR HOURLY SHOP RATE?

Your input and discussion are greatly appreciated!

A survey that compares our hourly retail billing rates, which we use to set labor prices.

RESULTS from previous surveys: www.custompictureframing.com/poll_results.htm

Mike

Note: Prices are compared in US dollars. If outside of the USA, please convert to US currency before answering. These prices are for labor only.
 
We have been at $55/hr but I think we are bumping it out to 60 this month. It's been the same for 7 years. The lease runs out on the 20th. New lease, new shop rate.

For those who marked the $11-15, I think may be confusing "shop rate" with hourly wage.

As for the $100/hr . . . Hugh?

Great poll Mike. It is interesting to see that the rent/fixed overhead/utilities/insurance ectera seems to be a little more consistant across the nation than one would think.

We, in Portland, think that house cost are totally out of hand, and young people just can't afford to buy here . . . and then we look elsewhere and find housing to be compareable.
 
I just raised mine from $60/hr to $80/hr last month.

After considering and comparing my rate to that of carpenters, computer tech's, plumber's, electricians, bike repair tech's, mechanics, etc. I figured it was time for an adjustment to keep mine in line with these listed and others surveyed.

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Mike
 
The question I have is how much do you raise your rates if a second person gets involved on the project. Is it $XX.00/person/hour? or like the plumber the second persons hourly is about half the first's. Or does the flat rate include as many warm bodies as necessary to get the job done?
I am thinking about the surcharge that I pay to frame manufacturers when a closed-corner frame exceeds a specific footage. The justification in adding on 20-50% is that there are additional people needed to handle overly large items.
 
It depends on the qualifications of the #2 framer. Two "senior framers" = times 2...........then go down from there.

As for oversized finished corner frames. Working with these suppliers has trained me to know that is oversided, what requires a wood crate and what goes LTL. These charges are added directly to my quote to a client.

Talking to their sales staffs while getting a basic quote for cost includes questioning how it will be shipped and how it will be crated. The moral is to ask "how much for...?".
 
Originally posted by wpfay:
The question I have is how much do you raise your rates if a second person gets involved on the project. Is it $XX.00/person/hour? or like the plumber the second persons hourly is about half the first's. Or does the flat rate include as many warm bodies as necessary to get the job done?
Click to expand...
Technically, you should have a labor rate for each person in your shop, based upon their hourly rate, the amount of billable hours they work, and other costs related to their hours and hourly rate, such as health insurance, retirement benfits, etc. Most companies do this by setting up two or three classes of employee, such as Master Electrician, Journeyman, and Apprentice. And, yes, you should charge for each persons involvement in the direct labor part of the job.

Originally posted by wpfay:
I am thinking about the surcharge that I pay to frame manufacturers when a closed-corner frame exceeds a specific footage. The justification in adding on 20-50% is that there are additional people needed to handle overly large items.
Click to expand...
That may be part of it, but the major reason we charge extra for oversized items is not for the labor, it's for the material. Think about diamonds - if 2 carat diamonds sold for the same price per carat as .2 carat diamonds.... hmmm, my wife would have gotten an different engagement ring. Look at your average 2 x 4 from the lumberyard - how many will you have to go through to get a clear piece 5 feet long compared to one only 5" long? The same thing holds true with high grade lumber - the longer the piece you're looking for the more difficult it is to find one that is straight, clear and consistent in color.
 
I'm wondering if the higher end hourly labor charge shops are also the ones with smaller work forces. I'm pretty much a one person labor force here so maybe I don't have the right perspective on this but wouldn't the idea be that two people working on a project be twice as efficient as one so the labor cost would be equal either way? Seems like a job should just take less time leaving more time for more jobs. And as an employer if I saw say $10 pr hr profit from employee #1 (and lets just say that was my baseline worthwhile to stay in business profit) could'nt I make less "profit" on additional employees labor lowering my overall hourly costs? Seems like the more help I was able to keep busy the less I might have to charge per hr.
 
Terry, read a book called the Mythical Man-month. The biggest problem project managers have is that "the boss/owner/customer/whatever" thinks two people can do things in half the time of one. Ain't happening. Based on my experience, the more people, the more coordination, and the more effort and time to keep everyone on the same page. There is even a point where more people takes MORE time.
 
More people can indeed take more time, although they would most often take less time to produce the same products with some reasonable managment and a good specialist style workflow as is easily created for the manufacture of picture frames. The biggest variance I have is a regular production run where a single person can average 28 frames in three days, two working together can create 74. Thats when you up the labour rate.
 
It's very interesting how the answers are all over the chart. From $15/hour to $100/hour. The most popular answer is $60/hr.

One thing for sure, we need to raise our ($40)rate.

Thanks for participating!
Mike
 
What I want to know is, how could two framers think that a shop rate "does not apply"?

And if they really think that, why would they take the trouble to respond to the poll?
shrug.gif
 
Bumped to TOP. Last couple days to participate.
 
WHAT IS YOUR HOURLY SHOP RATE? - JANUARY 2005

The results are in! $60 was the most popular answer.

Discussion welcomed

02% DOES NOT APPLY
04% $15
01% $20
01% $25
04% $30
05% $35
13% $40
12% $45
12% $50
07% $55
25% $60
07% $65
00% $70
05% $75
02% $80
00% $85
00% $90
01% $95
01% $100
00% Over $100/hr

Rounded up to nearest $5
 
Even Walmart's hourly employee cost is probably more than $15/hr when you figure insurance, benefits, etc.

Our retail rate was based on those of 10 years ago and the results have made me aware of this. We'll be moving them up today.

For such a unique talent and skill, i'm somewhat surprised how low the industry charges per hour. In many other industries, it's a lot higher.

Thanks to all that participated. Very interesting results.
 
bumped. Discussion welcomed.
 
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