THE HOURLY RATE CALCULATOR

 =         NET PROFIT         =

CHARGE - OUT PRICING BY THE HOUR

GRIDMASTER, 24 St Philip’s Close, Kettering, Northamptonshire, NN15 5DU
Email: latham.mike@gmail.com

Are you confident that the hourly rate you apply to your machine cycle times is correct?
Will it result in an Acceptable net profit?

Final Step:  Firstly enter your value for the Target Hourly Rate. A good guide for the initial value is to research what other similar enterprises are currently charging - in other words, “what is the average hourly rate charged by my competitors who offer a similar service”?

Obviously, the lower you can make this and yet still come up with a reasonable net profit, the more competitive you will be.

Once the target hourly rate is entered, all you need do is click on the “Calculate Results” button to give you your first forecast. Should this be satisfactory, you’re in business. If it is too low, you have some cost-cutting to do, (or increase production efficiencies). If it is too high, you are in a very healthy position and may be able to increase your hourly charge-out rate.

The lower you can make this target rate and yet still come up with a reasonable net profit, the more competitive you will be.

Once the target hourly rate is entered, all you need do is click on the “Calculate Results” button to give you your first forecast. Should this be satisfactory, you’re in business. If it is too low, you have some cost-cutting to do, (or increase production efficiencies). If it is too high, you are in a very healthy position and may be able to increase your hourly charge-out rate to generate a higher net profit margin.

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