Great video Anthony, don't forget to add in what it costs to do job estimates and locate materials needed to perform the work, these things take time but don't always show themselves as a tangible expense, some may argue that "it's the cost of doing business", possibly but time is money.
@@Brrrap743 You know it, when I had my machine/fabrication shop I had several customers "buy" one of something from me then take it somewhere else to "de-engineer it to get it made for less $$ because all of the engineering was done, fortunately you get what you pay for and the majority of these clowns ended up coming back to me to get the part built correctly. Another issue was suppling detailed estimates of labor and material only to have the customer go buy the materials elsewhere then find out it was 40-60% higher for the labor to use their stuff because they took my 30% markup for the materials, when they flipped out I would asked them if they brought their own eggs to Waffle House.
@@Peter-V_00 I have a screen printing / embroidery shop. I charge the customer for a blank shirt if they supply their own apparel. It is 2x+ the labor. Wrong color / quantity supplied, factory 2nds / crooked, "we swear we gave you 30 shirts". Welding / fabrication, there is even more room the for customer to screw up. There is a whole bunch of grades of steel. From a customer's eye they will always choose the worst. "I think this fence post from my back yard is steel, can you use that?"
As somebody who has been on the self employed welding adventure for the past 5 years I can say this breakdown is VERY accurate. The "metal in the eye" comment isn't a joke either. I've spent $300 at the eye doctor a couple times now after getting metal in my eye on a $200 job.
You ever watch these guys from pakistan welding on broken trucks with sandals and no safety glasses? Makes me think its all about situational awareness, and PPE is a scam to make you complacent with taking risks. Before I had steel toe boots I never dropped anything on my feet, after steel toe boots it was a common occurrence.
@@greatestevar Checks notes, lack of healthcare, sanitary conditions, and high infant mortality rate in Pakistan. They aren't dying of work related accidents, or getting injured is my point.
Every company I've worked for that had welding trucks and plumbing vans had a hourly rate then charged for fuel and consumables(non ppe) separately. We would fill out a work order that broke down the hours for each task, a materials Column, a consumables column and then a fuel charge box that showed the miles driven for the job and they added the welders fuel on top of that.
That’s a great pitch. I run a blacksmith/bladesmith shop where I do hand metal work and for now I just do hobby welding projects not for sale. I itemize my complete bill. Materials, PPE, Consumables, upkeep of tools, and the percentage of the cost of the tool based on how many hours were spent on it. Then I add on my hourly charge, and soon shipping cost.
I am currently a welding student. Recently earned my AWS D1.1 All positions SMAW. I enjoy your videos and your insights of the business. You cover a lot of things some people don't think about before they attempt to open up a business. I'm hoping to find a shop job for few years and bank some money so I can buy my own Rig and get out there. Keep the videos rolling. I appreciate the time you spent on this.
Really good explanation. I think people are quick to comment when anyone tells them hourly rate that wow thats high. They dont think about the factors you laid out.
My uncle who does body work on cars and has his own shop aluminum work he has at $120 per hour for simple dent and ding repairs he should easily be charging $200 an hour for all his welding
I had a customer get real grouchy on me once about a minimum 1hr cost. I explained the cost of each tool that I used on their job, travel expense, plus my load and unload time. They ended up quite happy with the 1hr minimum
You have to open up a welding shop, let your customers come to you. Hire a few welders who work under your supervision. That's how you grow the business. That's how i did it anyway! Retired now in the Dutch Caribbean, watching sunsets, catching red snapper, and grilling out whenever i want.
Nearly every small business owner fails to account for depreciation in real terms. Take the cost of your truck and divide that by expected life of the truck in years. Same with engine welder, etc etc. The reason people fail to do this is because these costs only come when the equipment gets replaced, so you hold the cash in the meantime. Then people borrow to replace equipment and pretend like those expenses don’t exist. Then we ask ourselves why most businesses fail in 5 years. P.S. repair is not depreciation, two different things.
agree completely....new welder 18,000 over 10 years maybe? Truck 60,000 over 10years?, crane 15,000 over 20 years? what lifetimes would you assign to these items.
this is exactly the kind of content missing for up and coming business men/women. once again Anthony is out here breaking down the reality of owning a business. absolutely love it. keep it up. thanks, looking forward to the next one
Great job Anthony! This is the type of skills we learned when I went to school in the 70’s and graduating in 83. It doesn’t appear that this is being taught anymore, I don’t hear people talk like we use to about a business adventure, Looking Ahead.
Good video, I'm at $75 an hour labor plus materials, consumables, mileage, supplies W/5 hr minimum. If you're starting out and I understand but you're taking one or two hour jobs the math just won't work out you're losing.... $532.÷12= $44.33 hr. If you set a fixed labor rate now you're guaranteed that rate per hour. Another huge thing to consider if you're young that's one thing but this business takes a toll on your body so make it worth your while or don't do it.....
As always Anthony telling it like it really is. And only scratching the surface as mentioned below by many other fellow businesses owners. Everyone has to find solutions to make their business successful, but having this awareness of what Anthony is talking about is the keyl. And not going insane in the process 🤣
Pretty good explanation. But you forgot to mention all of the non billable hours you spend doing the things that keep the business running. Like billing, driving around to do quotes, figuring out what materials you need to order....... Your time is important and you should count that as en expense
Non billable hours is a huge factor I’ve found. When bidding a job its easier to include. But harder to explain on a T&M job. I found I was losing a bunch of money in “non billable” hours which I adjusted for in my 2022 rate
Yeah, it's getting expensive for sure. I'm a mobile welder and fabricator in Australia and I charge 150 an hour. By the time I pay my tax, superannuation, consumables, maintenance and all the added costs, I get about 60 in my pocket. People very quick to assume that 150 is big rich money.
Hey “Tony”, great job on the break down. Who do you go through for insurance, I’d like to give them a call. $2200 a year is a steal. I’m a little higher than that. I’m presently at $120 (part time)an hour in RI. I still have all the overhead, but I maintain a full time position at a company as a welder also. Hood down, lights on.
This is where adding in a fuel and supplies service charges for each customer comes into play by adding it in to hour rates on each job a service fee will add to helps u out to cover all fuel cost and supplies and if do more than 3 jobs a day that device charges would end up paying for all costs plus bumps pay up by a hundred dollars miniuns
by your math that’s 500+ a day. most would be lucky to make half that in a day working 8 hrs at a job they can’t stand. that’s more than 15k profit a month. obviously there are a lot of hidden costs not mentioned, and then there’s the fact that that’s based off of 7 days a week for 12 hrs a day, while i’m sure you’re a hard worker, it’s probably safe to say, you like to enjoy your time off. there’s so much more that goes into running a business that it would take much longer than 10 min to really break it down and explain it all. so i hope people don’t look at this and think, dang 532 a day in profit? that’s amazing! there’s so much more to it.
You hit all the basics which i feel like is exactly what needed to be said in this video my man. Consumeables here in VA have gone out of sight forcing me to order most of them to only find out that now they're out of stock/cant get it or backordered sometimes after waiting a week... smdh! Gas Consumables here doubled in price- in November i paid 64$ to get my 75/25% mix filled and in March its now around 132$ for the SAME EXACT BOTTLE!!! Weld metal at the same shops also went up 40% or higher- 5lb box of 7018s were 45$ at the welding shops!!! Atleast i can shop around to the big box stores for that... And metal prices... smh.... try .70 lb for scrap cuts
Yes a lot of people don't understand why you ask what you ask for. Some folks just think welding is some cheap hoshposh hot glue fix that should be darn near free. They don't consider everything that comes out of your pocket before you even strike an arc.
Yep, welding is underrated on all levels. It’s hard work and nobody wants to pay what it’s worth, wether independent or working for someone else. Every thing from welding equipment to material has gone up in price, wages should reflect this.
The free market sorts this out for us. “Worth” is determined between customer and welder. If you aren’t satisfied with what people are willing to pay then you haven’t found your niche. You are probably competing with people that don’t mind taking short cuts that customers are ok with. Identifying a specialty that requires more equipment than what “Chuck in a Truck” has or more practice than the average welder has will command higher income.
And the knowledge ????? Years of experience???? Not only the equipment! You need to put that important plus ! A1 thing you need to solve any problem ! To offer a quality job !
Miller Digital Elite lasted me 5 years. Had to replace the computer board but it came with a three year warranty. So it cost me nothing to replace the boards. I have a miller digital elite 2.0 clear light with external grinding button now. It's the best helmet for welding I've purchased.
I charge 120 an hour here in the keys plus consumables. I will say most people here have not had a problem but 20 percent like to tell me how they could do it if they had a welder and that's to much blah blah. I have learned that if i say a price and it seems to be a problem just walk away. I do charge consumables separate so gas rod argon all that I charge on a per job basis. I was charging 100 hr but my business insurance went up and demand went up so I raised the price to try to curve the situation. They are saying diesel might hit 10 bucks by the end of this year which is insane. So many more things people don't take into account belt sander, grinders (they burn up fast), torches, tools in general like pipe rollers or new bender dies it is insane but I will have to say I am a little concerned with the way prices are going and how that will affect my price per job and the customers reaction to that price in the future
Same here in Detroit dude asked me to weld on his car I told him 500 to do it he started by saying it should only take 2 hours at the most and how I'm ripping people off I told him to do it himself and when he misses it up and I have to fix it it's double that
The expenses on paper are just one thing that customers pay for. What they are really paying for is all the wasted material,consumables, and time that you spent screwing up learning your trade. Some went through formal training and that is an expense that many don’t think about when someone turns a bill in. Also being self employed there is an added expense which is your time spent on paperwork, checking your truck over doing inventory so you don’t drive 3 hours to a job just to remember you left 3 of your batteries in the shop at home and the one in your grinder is dead so you have put it on charge.
Get yourself a white colored “Pipeliner” helmet by Fibre-Metal. It’s old school, but works. However they tend not to fit the pancake type filters underneath, so you’ll have to consider when using it when welding galvanized or painted surfaces. Some like the “rubber band” head gear, while others use the knob type adjustable. They both break with heavy use, but the rubber bad model is easier and quicker to replace. I know a guy that uses cut up bicycle inner tube for his “rubber bands.” He cuts them to size with scissors. With the Fibre-Metal helmet, you cut the top with an angle grinder so as to custom fit it at the top of your head when it’s in the up position and cut to fit the bottom (a little at a time, so it fits and doesn’t snack your sternum when you flip it down. I have one that’s lasted 10 years. They last forever. I just change the glass about once every two years but use a clear plastic shield in front of it, found at your LWS. Also, investing in a Pipeliner pancake helmet works the best in sunlight. It keeps all the sun light out from your eyes. The eye shield is made of balsa wood and needs to be fitted with a file for one’s face. They are worth every single penny. But the Fibre-metal Pipeliner is da bomb! GOOD STUFF!
Great video on breaking that down. I haven’t welded in a few years or even on my own (but have always thought of breaking out on my own) the costs are easy to understand and I appreciate the smart ass comments 🤘🏻. I always enjoy watching your videos bro and the rig looks great.
A good jacket/apron, chaps, and tarsal guards can help extend the life of your clothes. Idk about yall but I rip through jeans and shirts and boots pretty quick
I don't think you charge too much. My boss charges people 125 an hour per person for field work with a 2 ½ hour minimum and Tig welding in the field is 130 an hour and we do the exact same thing you do. But most of the stuff we do is on a much bigger scale and the shop rate is 85 an hour and Tig is 90-95 an hour, hope this helps👍
Great informative video for aspiring welding entrepreneurs! I was happily surprised that you mentioned Medical costs ... I have had those as well and it costs a lot in medical billing as well as opportunity cost of lost time!... thanks for the valuable content! An honest and hard working man deserves success!
Excellent video and break down. It’s scary how much you actually spend a day/week/month when you add it all up like that and totally agree hourly rate needs to go up when you look at it like that. Keep up the great work 👍👍
For a lot of guys they "also weld," in the sense that, to scratch out a living you have to do so much more than just welding. It ends up being only one of the many skills you need to be useful enough to get paid as an employee. But running your own welding business, that's crip.
Although my business is a side business, I ALWAYS charge my labor rate + materials, I charge what you charge in NY as I’m a way smaller operation, I will say though, that though I use way worse equipment so my overhead is not near as large, to put it blunt, scale it down, charge overhead, or do both and don’t bitch, I promise you that a customer won’t complain about an extra $25-50 a job, which if you’re doing a lot of jobs a day, shit adds up. Don’t also forget to charge based on the job, I charge way more then my field rate for truck frames/mufflers for example, simply because mechanic shops near me charge $150+ per hour for that service, and a lot of welders near me don’t touch cars.
Crazy. I’m not even big enough to charge 100 an hour since I’m still starting out on my own, but this definitely helped me get an idea on it. I charge 70/hr but I don’t do taxes or nothing since it’s on the side. Thanks for this info, definitely helped a bunch
Wrong mindset on whether you’re “big enough” it has to do with the cost for YOU to do the work, plus what you want to get paid. This guy as detailed as it seemed, still has a lot of hidden costs and his income is nowhere near what he says is profit
never write about not paying taxes online. the IRS is getting 80,000 new agents thanks to joe biden and they are not going after elon musk. they are coming for you and searching social media for people talking tax avoidance will surely happen day one. IRS can go to YT with a warrant and find out everything about you.
Yeah they only tax you on your profits after expenses. It gets easy when you charge every business expense to a business bank account and keep it completely separate from your personal expenses. And I actually get tax credits for paying into a retirement fund. When done properly. The government will pay you while your side business grows simply reinvest your profits into business growth. And only pay yourself the absolute minimum needed to survive. But as a profit share, not wages.
Thank you Anthony for this Very pertinent video. Health insurance is a big one too. Everything goes up even higher when youre practice is in the most expensive city in the usa: New york city.
They are awesome I used them for years my last one lasted 6 years and it wasn’t taken care of at all! Falling of of railcars and all manner of banging around in the toolbox and crawling around in and out of tight places rained on leg list goes on
I’ve learned to only use my expensive welding gloves for welding only, I use a pair of Tillman tig gloves for all my dirty work. I’ve had a pair of lamb skin Tillman stick gloves for about two years and they’re in fair condition. That’s all I know about gloves, lol.
I’m a welder fabricator but own a pressure washing business too… I love welding but for whatever reason it doesn’t pay what it should. I get $200 an hour with a $15,000 pressure washing rig and I could teach someone how to do 90% of what I do in a weekend. It takes years to become a good welder and fabricator!
Here - Europe - you can double or tripple most of the costs you just detailled.. a half-size bottle of 5% argon/CO2 Mig gas runs €140.. those bottles do not last long when you're welding all day. Diesel is €2.00 or damn close per liter( 5 liters per gallon - so €10/gallon, same for gas(petrol). A small 2.5kg roll of Mig wire is now €40.. Dollar/Euro are close to parity, so the costs translate pretty much as the same numbers in either currency. You need a high number per hour to cover those costs, the customer will whinge.. the age old dilemma.
I'm wanting to start my own welding business and I'm kinda debating on what and how to do it. I'm thinking about starting on the side after I clock out from my welding day job and doing stuff on the weekend until I get a reputation built up and slowly adding different things over time. When I'm not driving around doing different gigs l, I kinda wanna do decorative stuff that I can sell and maybe add bbq's and other stuff over time.
On a check your supposed to write out $500.00 so it looks like $Five Hundred Dollars and zero cents. (Not verbal) But you get the point what difference does it make when youve seen welders pay versus regular pay...it's drastically different
There is a lot of overhead. I would be charging 145.00 a hour. Same as Mobile truck service. Also I would be charging 2.50 a mile to and from the temporary 1 day work location. Add in you consumables. Cutting gas and 25.00 shop supplies. If you bid a large job your going to have to factor in fuel.
I bought a 3m g5-01 hood (very used from eBay) a few years back and the only issue I’ve ever had with it is the flip up hinges are getting slightly loose from drops
I charged 120.00 an hour in 1980 when i started rig welding . Pluse cosumable grinder wheels and filler metals and materails , pluse gasses. from the time i left my home and back ( travel) , calld portal to portal within 100 mile each way . I wouldn't leave the house for less than 250.00 an hour now . 50% of the estimated cost up front . paid weekly . your old buddy Johnny Boilmaker / pipefitter / ironworker / general contractor / weld inspector
Bro I am a hvac contractor and I charge $150 an hour! The shop I take my trucks to is at $165 an hour! You’re pretty low Id definitely raise your labor rates! Also why are you not charging for your consumables? Sounds crazy!! I’d also be estimating the life span of your equipment and tools breaking it down per day and adding that to the bill!
Great, great video Anthony! It really shines a light on how little $100 an hour is more than reasonable for the customer, (but you really need to raise your hourly rates!). Love your channel!
The "average welder" up here in New England charges $135-$150 an hour in commercial welding. They are also in very high demand. Especially pipe welders for the chilled water, hot water heating systems, and natural gas piping for all these new office buildings and hotels being built up here.
100/hr to me is what a welder should make working for a company that provides ALL the consumables and whatnot. Id say 200/hr is more reasonable if you are the whole company, but charging by the job may be a better way?
how do you weight profit vs taking a profit loss to stay under other companies is that a good move or not as far as getting in the door the first call doing your services and then next call get your profits, i do handyman jobs llc insured i have some overhead the one thing i keep in my head is why arizona ice teas are still $1
Why aren't you billing all consumables, gases, gas/diesel, and at least some travel time/service call fee on top of your hourly. I bill everything I use, at a minimum 25% markup, and 40 to 50% on materials. I also factor time spent prepping for the job, getting materials ect. As you my truck is always fully stocked with enough consumables, and back ups of the fast moving stuff. I keep 3 bottles of all gasses on hand at all times and refill when 2 are gone, got to have weekend supplies. Also boxes and boxes of rod, wire, flaps and grinding wheels, wire wheels ect. And don't forget that one day a week average you spend keeping the truck organized, clean and fixing all the little maintenance things, whether it be an hr or 2 a day or a full day, I just spent yesterday doing just that and still didn't get it all done. With that being said, it's the big quote jobs, and emergency, off hr emergency jobs that make the real money. I agree with all you are saying, but think if you bill all consumables, even come up with a daily charge for ppe ect and things look better quick. Almost all other trades do it, we need to also.
Great video Ant.... The costs add up, that's for sure brother. Like you say.... that's if all goes smooth and you don't hurt yourself, and need to take a few days off, or break a machine and lose revenue from being down. Thanks man
I did some work for a guy on an old truck in his shop using his power, my welder, my gas, my grinders, my tools etc. I told him $50 an hour. His response was he knew guys that got paid $28 working at blah blah Acme Co. Was I outta line for asking $50 an hour? Nope.
A mobile welder friend of mine has a $150 minimum and that's after the $250 he charges just to start his truck so, really $400 minimum per job. He's in on Long Island, NY.
You need to average the hours per week, per month from historical data. You won't hit that target 12 hours every day. Some days the costs are the same but you only work 4 hours so you lose $100.00 on that day. The next day you may do 5 hours which is a break-even day. Doing longer projection with medium averages give you a complete picture of the week/month. Frankly, your prices are too low. I would shoot for adding items to your invoice. Average the consumables, and trucking. To make things more profitable I would add 24% to your total invoice to cover the costs, plus I would add trucking. So if your bill was $500.00, add the 28% or 140.00, plus $125.oo trucking charge. Now your normal $500.00 fee climbs to $765.00. I did this exact same thing with my business and never once had anyone question the "add-on" fees because they were legitimate fees. When I did for my business those fees were pure profit that I normally wasn't getting because I bundled everything into the hourly rate.
Lots of fun being a mobile rig welder. Just started doing it and my transmissions going out(I don’t hotrod my shit) so now I’m having to fork over 3k for a new 5spd transmission. But I have the money now to go buy a back up truck. So now I’m in a dilemma… do I get the back up truck and fix my main rig truck in a couple weeks or just wait and fix the main rig now?
you forgot depreciation! if your trucks/welders etc cost 120k and need to be replaced every ten years that is 12k/year or 1000/month! you may have more than 120k in replacement!!! what about your health plan? than is right off your net pay too!!
thats basically what I was charging $75-$100 depending on what I saw, when I quit doing work, around 2010, a farmer bought metal, we had agreed for me to cut & fit & weld for $100, when I did it too fast, he got mad, then started to refuse to pay me, trying to demand I accept $25 for my work, when I laughed picked up my phone and threatened to call real BIKERS to pay him a visit & he knew I wasnt playing, he paid me, after I got home, thinking I would have not cared how bad he had been beat or killed over $100, I stopped welding away from my home, that way I had control of item from leaving my home, until paid. as for your fuel costs, I disagree with running big truck for all running, I would have something cheap for running, & use truck for when have to work, there are plenty of small cars, or import trucks to use for light running, that will get you 30mpg, big fuel saving, plus keep lots of miles off your truck, and even though you can write fuel cost off taxes, it still affects your bottom line. I even used a 1987 Toyota to do welding with, to save fuel, versus my full size, I did use a long bed, but carried a Lincoln Ranger 9, plus my gear, small 4hp air compressor, 100' of lead, a small MIG, as needed. only carried 40CF torch tanks, unless expected to need my bigger ones & I had 3 sizes of tanks.
I mean people are gettin 600$ paychecks for 2 weeks of work. So I’d say that 550 a day ish is pretty sweet. So a two week work period is over 5000$ bucks. $10000 a month. 120000$ a year. But is 500$ a day really covering your personal risk and other expenses you have. Like putting money into the Business. This is a field with a lot of potential.
Great video Anthony, don't forget to add in what it costs to do job estimates and locate materials needed to perform the work, these things take time but don't always show themselves as a tangible expense, some may argue that "it's the cost of doing business", possibly but time is money.
This is a very overlooked part of a business. People forget the stuff has to get there and the trash needs to be hauled away.
Exactly. All the bullshit time we put in that the customer never even considers let alone sees.
@@Brrrap743 You know it, when I had my machine/fabrication shop I had several customers "buy" one of something from me then take it somewhere else to "de-engineer it to get it made for less $$ because all of the engineering was done, fortunately you get what you pay for and the majority of these clowns ended up coming back to me to get the part built correctly.
Another issue was suppling detailed estimates of labor and material only to have the customer go buy the materials elsewhere then find out it was 40-60% higher for the labor to use their stuff because they took my 30% markup for the materials, when they flipped out I would asked them if they brought their own eggs to Waffle House.
Faccct. Bidding jobs really can consume a ton of the week.
@@Peter-V_00 I have a screen printing / embroidery shop. I charge the customer for a blank shirt if they supply their own apparel. It is 2x+ the labor. Wrong color / quantity supplied, factory 2nds / crooked, "we swear we gave you 30 shirts".
Welding / fabrication, there is even more room the for customer to screw up. There is a whole bunch of grades of steel. From a customer's eye they will always choose the worst. "I think this fence post from my back yard is steel, can you use that?"
As somebody who has been on the self employed welding adventure for the past 5 years I can say this breakdown is VERY accurate. The "metal in the eye" comment isn't a joke either. I've spent $300 at the eye doctor a couple times now after getting metal in my eye on a $200 job.
You ever watch these guys from pakistan welding on broken trucks with sandals and no safety glasses?
Makes me think its all about situational awareness, and PPE is a scam to make you complacent with taking risks.
Before I had steel toe boots I never dropped anything on my feet, after steel toe boots it was a common occurrence.
@papapsych2746 yikes good luck out there brother. PPE is anything but a scam, sounds to me more like a user issue
@@papapsych2746😂😂😂 whats the average male pakistani life expectancy?????
Oh yeah...60 years
@@greatestevar Checks notes, lack of healthcare, sanitary conditions, and high infant mortality rate in Pakistan. They aren't dying of work related accidents, or getting injured is my point.
Every company I've worked for that had welding trucks and plumbing vans had a hourly rate then charged for fuel and consumables(non ppe) separately. We would fill out a work order that broke down the hours for each task, a materials Column, a consumables column and then a fuel charge box that showed the miles driven for the job and they added the welders fuel on top of that.
That’s a great pitch. I run a blacksmith/bladesmith shop where I do hand metal work and for now I just do hobby welding projects not for sale. I itemize my complete bill. Materials, PPE, Consumables, upkeep of tools, and the percentage of the cost of the tool based on how many hours were spent on it. Then I add on my hourly charge, and soon shipping cost.
THats correct
I am currently a welding student. Recently earned my AWS D1.1 All positions SMAW. I enjoy your videos and your insights of the business. You cover a lot of things some people don't think about before they attempt to open up a business. I'm hoping to find a shop job for few years and bank some money so I can buy my own Rig and get out there. Keep the videos rolling. I appreciate the time you spent on this.
Best of luck!
That's my plan be a travel welder for some time then get after a mobile rig
Really good explanation. I think people are quick to comment when anyone tells them hourly rate that wow thats high. They dont think about the factors you laid out.
My uncle who does body work on cars and has his own shop aluminum work he has at $120 per hour for simple dent and ding repairs he should easily be charging $200 an hour for all his welding
I had a customer get real grouchy on me once about a minimum 1hr cost. I explained the cost of each tool that I used on their job, travel expense, plus my load and unload time. They ended up quite happy with the 1hr minimum
@@The_Coleman I have a family friend who owns a heavy equipment business he does excavation etc. he won’t show up for anything less than 2k
You have to open up a welding shop, let your customers come to you. Hire a few welders who work under your supervision. That's how you grow the business. That's how i did it anyway! Retired now in the Dutch Caribbean, watching sunsets, catching red snapper, and grilling out whenever i want.
That's all you do now? Fuck that bro those are hobbies, you literally just sitting back waiting to die
@kykingz78 bullshit
@StreetX FACTS MAN all these people just don’t have any ambition, that’s why it’s not happening for them. Anything is possible!
Man the life! Congrats! I bet it’s an awesome feeling of achievement!
Just don't pay yourself, you don't need to eat.
I’m trying to start my llc soon mobile welding you are an inspiration I watch all your videos for guidance
Nearly every small business owner fails to account for depreciation in real terms. Take the cost of your truck and divide that by expected life of the truck in years. Same with engine welder, etc etc.
The reason people fail to do this is because these costs only come when the equipment gets replaced, so you hold the cash in the meantime. Then people borrow to replace equipment and pretend like those expenses don’t exist. Then we ask ourselves why most businesses fail in 5 years.
P.S. repair is not depreciation, two different things.
Thank you, I didn’t think of that. Great point!
agree completely....new welder 18,000 over 10 years maybe? Truck 60,000 over 10years?, crane 15,000 over 20 years? what lifetimes would you assign to these items.
this is exactly the kind of content missing for up and coming business men/women. once again Anthony is out here breaking down the reality of owning a business. absolutely love it. keep it up. thanks, looking forward to the next one
Great job Anthony! This is the type of skills we learned when I went to school in the 70’s and graduating in 83. It doesn’t appear that this is being taught anymore, I don’t hear people talk like we use to about a business adventure, Looking Ahead.
Good video, I'm at $75 an hour labor plus materials, consumables, mileage, supplies W/5 hr minimum. If you're starting out and I understand but you're taking one or two hour jobs the math just won't work out you're losing.... $532.÷12= $44.33 hr. If you set a fixed labor rate now you're guaranteed that rate per hour. Another huge thing to consider if you're young that's one thing but this business takes a toll on your body so make it worth your while or don't do it.....
I do landscaping and dirt work and I use to think I made good money but man. Inflation is really hitting us hard the past couple years.
As always Anthony telling it like it really is. And only scratching the surface as mentioned below by many other fellow businesses owners. Everyone has to find solutions to make their business successful, but having this awareness of what Anthony is talking about is the keyl. And not going insane in the process 🤣
I had 5 service trucks on the road doing service/warranty work. they ran about 100g a year a piece to run.
😟 damn!
Everything has doubled, your prices should too.
Pretty good explanation. But you forgot to mention all of the non billable hours you spend doing the things that keep the business running. Like billing, driving around to do quotes, figuring out what materials you need to order....... Your time is important and you should count that as en expense
Non billable hours is a huge factor I’ve found. When bidding a job its easier to include. But harder to explain on a T&M job. I found I was losing a bunch of money in “non billable” hours which I adjusted for in my 2022 rate
Yeah, it's getting expensive for sure. I'm a mobile welder and fabricator in Australia and I charge 150 an hour.
By the time I pay my tax, superannuation, consumables, maintenance and all the added costs, I get about 60 in my pocket. People very quick to assume that 150 is big rich money.
I often tell those, who tell me it’s to much, “ go buy a machine, get a truck, insure it, take 5years to learn to weld, and then do it yourself .”
@@jonnyonthespotwelding979 definitely, it's easy to be a critic.
Hey “Tony”, great job on the break down. Who do you go through for insurance, I’d like to give them a call. $2200 a year is a steal. I’m a little higher than that. I’m presently at $120 (part time)an hour in RI. I still have all the overhead, but I maintain a full time position at a company as a welder also. Hood down, lights on.
This is where adding in a fuel and supplies service charges for each customer comes into play by adding it in to hour rates on each job a service fee will add to helps u out to cover all fuel cost and supplies and if do more than 3 jobs a day that device charges would end up paying for all costs plus bumps pay up by a hundred dollars miniuns
Right on the money there. One man show makes a good living and that’s it. Your not gonna get rich but it’s better than working for some one else.
I have a phase that I like to use “I’d rather work for me than work for thee”
100% true!
Best breakdown of actual costs, no bs, that i've seen yet. Thanks
I would charge consumables on top of your price. Some jobs consumables can be quite expensive
by your math that’s 500+ a day. most would be lucky to make half that in a day working 8 hrs at a job they can’t stand. that’s more than 15k profit a month. obviously there are a lot of hidden costs not mentioned, and then there’s the fact that that’s based off of 7 days a week for 12 hrs a day, while i’m sure you’re a hard worker, it’s probably safe to say, you like to enjoy your time off. there’s so much more that goes into running a business that it would take much longer than 10 min to really break it down and explain it all. so i hope people don’t look at this and think, dang 532 a day in profit? that’s amazing! there’s so much more to it.
The speed glass has lasted me 10 year dropped it 9 floors and bounces off concrete still works like dream
You numbers and estimates were right in line with what I estimate for costs. Consumables and fuel have started to suck!!!
Interesting to show people who don't realize what your cost is to do a job beyond the obvious materials. Great job!
You hit all the basics which i feel like is exactly what needed to be said in this video my man.
Consumeables here in VA have gone out of sight forcing me to order most of them to only find out that now they're out of stock/cant get it or backordered sometimes after waiting a week... smdh!
Gas Consumables here doubled in price- in November i paid 64$ to get my 75/25% mix filled and in March its now around 132$ for the SAME EXACT BOTTLE!!!
Weld metal at the same shops also went up 40% or higher- 5lb box of 7018s were 45$ at the welding shops!!! Atleast i can shop around to the big box stores for that...
And metal prices... smh.... try .70 lb for scrap cuts
Yes a lot of people don't understand why you ask what you ask for. Some folks just think welding is some cheap hoshposh hot glue fix that should be darn near free. They don't consider everything that comes out of your pocket before you even strike an arc.
LOVE IT! When you discuss the taxes and Uncle "Sam, like the MOB!"😅
Yep, welding is underrated on all levels. It’s hard work and nobody wants to pay what it’s worth, wether independent or working for someone else. Every thing from welding equipment to material has gone up in price, wages should reflect this.
The free market sorts this out for us. “Worth” is determined between customer and welder. If you aren’t satisfied with what people are willing to pay then you haven’t found your niche. You are probably competing with people that don’t mind taking short cuts that customers are ok with. Identifying a specialty that requires more equipment than what “Chuck in a Truck” has or more practice than the average welder has will command higher income.
@@morganmerritt8846 This isn't a free market economy. Its a parasites paradise.
And the knowledge ????? Years of experience???? Not only the equipment! You need to put that important plus ! A1 thing you need to solve any problem ! To offer a quality job !
Very true but you can't forget the 600 a month welder payment plus the truck payment
Miller Digital Elite lasted me 5 years. Had to replace the computer board but it came with a three year warranty. So it cost me nothing to replace the boards. I have a miller digital elite 2.0 clear light with external grinding button now. It's the best helmet for welding I've purchased.
I charge 120 an hour here in the keys plus consumables. I will say most people here have not had a problem but 20 percent like to tell me how they could do it if they had a welder and that's to much blah blah. I have learned that if i say a price and it seems to be a problem just walk away. I do charge consumables separate so gas rod argon all that I charge on a per job basis. I was charging 100 hr but my business insurance went up and demand went up so I raised the price to try to curve the situation. They are saying diesel might hit 10 bucks by the end of this year which is insane. So many more things people don't take into account belt sander, grinders (they burn up fast), torches, tools in general like pipe rollers or new bender dies it is insane but I will have to say I am a little concerned with the way prices are going and how that will affect my price per job and the customers reaction to that price in the future
Same here in Detroit dude asked me to weld on his car I told him 500 to do it he started by saying it should only take 2 hours at the most and how I'm ripping people off I told him to do it himself and when he misses it up and I have to fix it it's double that
Mobile work is the best, I do a 3 hour minimum and try to stack small jobs together. I might have 14 billable hours in one day in only 8 hours
The expenses on paper are just one thing that customers pay for. What they are really paying for is all the wasted material,consumables, and time that you spent screwing up learning your trade. Some went through formal training and that is an expense that many don’t think about when someone turns a bill in. Also being self employed there is an added expense which is your time spent on paperwork, checking your truck over doing inventory so you don’t drive 3 hours to a job just to remember you left 3 of your batteries in the shop at home and the one in your grinder is dead so you have put it on charge.
I'm 60$ an hour 2 hour minimum and poeple in my area think that's too much till they shop around.
Get yourself a white colored “Pipeliner” helmet by Fibre-Metal. It’s old school, but works. However they tend not to fit the pancake type filters underneath, so you’ll have to consider when using it when welding galvanized or painted surfaces. Some like the “rubber band” head gear, while others use the knob type adjustable. They both break with heavy use, but the rubber bad model is easier and quicker to replace. I know a guy that uses cut up bicycle inner tube for his “rubber bands.” He cuts them to size with scissors. With the Fibre-Metal helmet, you cut the top with an angle grinder so as to custom fit it at the top of your head when it’s in the up position and cut to fit the bottom (a little at a time, so it fits and doesn’t snack your sternum when you flip it down. I have one that’s lasted 10 years. They last forever. I just change the glass about once every two years but use a clear plastic shield in front of it, found at your LWS. Also, investing in a Pipeliner pancake helmet works the best in sunlight. It keeps all the sun light out from your eyes. The eye shield is made of balsa wood and needs to be fitted with a file for one’s face. They are worth every single penny. But the Fibre-metal Pipeliner is da bomb! GOOD STUFF!
Welding is generally what about 20% of your time, prepping , gathering, free estimating. grinding ,cutting
Did I miss the part where you factored in self-provided family coverage health insurance at $2000+/mo ($5-7hr, $50-84/day)?
Great video on breaking that down. I haven’t welded in a few years or even on my own (but have always thought of breaking out on my own) the costs are easy to understand and I appreciate the smart ass comments 🤘🏻. I always enjoy watching your videos bro and the rig looks great.
Thank MMA, bringing this kind of behind the scenes info is very helpful.
A good jacket/apron, chaps, and tarsal guards can help extend the life of your clothes. Idk about yall but I rip through jeans and shirts and boots pretty quick
I don't think you charge too much. My boss charges people 125 an hour per person for field work with a 2 ½ hour minimum and Tig welding in the field is 130 an hour and we do the exact same thing you do. But most of the stuff we do is on a much bigger scale and the shop rate is 85 an hour and Tig is 90-95 an hour, hope this helps👍
Great informative video for aspiring welding entrepreneurs! I was happily surprised that you mentioned Medical costs ... I have had those as well and it costs a lot in medical billing as well as opportunity cost of lost time!... thanks for the valuable content! An honest and hard working man deserves success!
Excellent video and break down. It’s scary how much you actually spend a day/week/month when you add it all up like that and totally agree hourly rate needs to go up when you look at it like that. Keep up the great work 👍👍
That's a great breakdown. The number$ are a bit different but the percentages are around the same here, so it's very similar here.
500 a day verses my 130 dollars before the 30% tax deduction I wouldn't complain
I charge $130. I do semi truck and trailer repair. sometimes it feels like it’s not enough
You also, didn't explain that you don't work every day, but the overhead doesn't stop. 😢
Thanks Anthony just what I needed to hear!!
For a lot of guys they "also weld," in the sense that, to scratch out a living you have to do so much more than just welding. It ends up being only one of the many skills you need to be useful enough to get paid as an employee. But running your own welding business, that's crip.
Although my business is a side business, I ALWAYS charge my labor rate + materials, I charge what you charge in NY as I’m a way smaller operation, I will say though, that though I use way worse equipment so my overhead is not near as large, to put it blunt, scale it down, charge overhead, or do both and don’t bitch, I promise you that a customer won’t complain about an extra $25-50 a job, which if you’re doing a lot of jobs a day, shit adds up. Don’t also forget to charge based on the job, I charge way more then my field rate for truck frames/mufflers for example, simply because mechanic shops near me charge $150+ per hour for that service, and a lot of welders near me don’t touch cars.
In the Pacific Northwest we are at least $125 Realistically average is $185 an hour without a crane on the truck. With crane $225-$250.
You forgot your fuel... LUNCH
Oh you betcha! Spot on sir.
Crazy. I’m not even big enough to charge 100 an hour since I’m still starting out on my own, but this definitely helped me get an idea on it. I charge 70/hr but I don’t do taxes or nothing since it’s on the side. Thanks for this info, definitely helped a bunch
If you do your taxes as make it legit you can write off so much with the right tax person. You can save so much by doing it right.
Wrong mindset on whether you’re “big enough” it has to do with the cost for YOU to do the work, plus what you want to get paid. This guy as detailed as it seemed, still has a lot of hidden costs and his income is nowhere near what he says is profit
never write about not paying taxes online. the IRS is getting 80,000 new agents thanks to joe biden and they are not going after elon musk. they are coming for you and searching social media for people talking tax avoidance will surely happen day one. IRS can go to YT with a warrant and find out everything about you.
Yeah they only tax you on your profits after expenses. It gets easy when you charge every business expense to a business bank account and keep it completely separate from your personal expenses. And I actually get tax credits for paying into a retirement fund. When done properly. The government will pay you while your side business grows simply reinvest your profits into business growth. And only pay yourself the absolute minimum needed to survive. But as a profit share, not wages.
Thank you Anthony for this Very pertinent video. Health insurance is a big one too. Everything goes up even higher when youre practice is in the most expensive city in the usa: New york city.
I charge 200-240 in cali
I need to factor in metal in the eye into every quote lol
Look into 3m speedglass helmets, my buddy runs a manufacturing shop and that’s what he uses.
They are awesome I used them for years my last one lasted 6 years and it wasn’t taken care of at all! Falling of of railcars and all manner of banging around in the toolbox and crawling around in and out of tight places rained on leg list goes on
I’ve learned to only use my expensive welding gloves for welding only, I use a pair of Tillman tig gloves for all my dirty work. I’ve had a pair of lamb skin Tillman stick gloves for about two years and they’re in fair condition. That’s all I know about gloves, lol.
Welding wire, not rods didn’t ask about them lately but wire Hobart xlr8 Lincoln’s all up 50 75% here.
At the end of the day making $41.66 an hour is better than working for someone else for $20.
no doubt, but the guy who fixed my Rv today charged me $150 a hour. so now I do feel under paid lmao
I’m a welder fabricator but own a pressure washing business too… I love welding but for whatever reason it doesn’t pay what it should. I get $200 an hour with a $15,000 pressure washing rig and I could teach someone how to do 90% of what I do in a weekend. It takes years to become a good welder and fabricator!
where i live before covid it was 300-400 to show up on site to start for any job plus 150 an hour after that
So here in canada I price in fuel and consumables with 20%mark up and charging 90 an hr just for my time and wear and tear
I'm at 40% mark up at $85/he here in Phoenix. Your rates actually kind of sound quite low for Canada
Here - Europe - you can double or tripple most of the costs you just detailled.. a half-size bottle of 5% argon/CO2 Mig gas runs €140.. those bottles do not last long when you're welding all day. Diesel is €2.00 or damn close per liter( 5 liters per gallon - so €10/gallon, same for gas(petrol). A small 2.5kg roll of Mig wire is now €40.. Dollar/Euro are close to parity, so the costs translate pretty much as the same numbers in either currency. You need a high number per hour to cover those costs, the customer will whinge.. the age old dilemma.
You have a knack for illustrative art too I noticed - that might be a profitable side gig.
I'm wanting to start my own welding business and I'm kinda debating on what and how to do it. I'm thinking about starting on the side after I clock out from my welding day job and doing stuff on the weekend until I get a reputation built up and slowly adding different things over time. When I'm not driving around doing different gigs l, I kinda wanna do decorative stuff that I can sell and maybe add bbq's and other stuff over time.
On a check your supposed to write out $500.00 so it looks like $Five Hundred Dollars and zero cents. (Not verbal) But you get the point what difference does it make when youve seen welders pay versus regular pay...it's drastically different
What do you do for health insurance
There is a lot of overhead. I would be charging 145.00 a hour. Same as Mobile truck service. Also I would be charging 2.50 a mile to and from the temporary 1 day work location. Add in you consumables. Cutting gas and 25.00 shop supplies. If you bid a large job your going to have to factor in fuel.
I bought a 3m g5-01 hood (very used from eBay) a few years back and the only issue I’ve ever had with it is the flip up hinges are getting slightly loose from drops
I charged 120.00 an hour in 1980 when i started rig welding . Pluse cosumable grinder wheels and filler metals and materails , pluse gasses. from the time i left my home and back ( travel) , calld portal to portal within 100 mile each way . I wouldn't leave the house for less than 250.00 an hour now . 50% of the estimated cost up front . paid weekly . your old buddy Johnny Boilmaker / pipefitter / ironworker / general contractor / weld inspector
Bro I am a hvac contractor and I charge $150 an hour! The shop I take my trucks to is at $165 an hour! You’re pretty low Id definitely raise your labor rates! Also why are you not charging for your consumables? Sounds crazy!! I’d also be estimating the life span of your equipment and tools breaking it down per day and adding that to the bill!
Great, great video Anthony! It really shines a light on how little $100 an hour is more than reasonable for the customer, (but you really need to raise your hourly rates!). Love your channel!
$500 a day is a ton. That’s what, 150k a year?
The "average welder" up here in New England charges $135-$150 an hour in commercial welding. They are also in very high demand. Especially pipe welders for the chilled water, hot water heating systems, and natural gas piping for all these new office buildings and hotels being built up here.
Great presentation!
I really appreciate this video! I have mentioned this a couple times in the comments awesome man! Thank you! 💯🤙🏼
Happy to help!
Smart move it adds up
100/hr to me is what a welder should make working for a company that provides ALL the consumables and whatnot.
Id say 200/hr is more reasonable if you are the whole company, but charging by the job may be a better way?
how do you weight profit vs taking a profit loss to stay under other companies is that a good move or not as far as getting in the door the first call doing your services and then next call get your profits, i do handyman jobs llc insured i have some overhead the one thing i keep in my head is why arizona ice teas are still $1
Why aren't you billing all consumables, gases, gas/diesel, and at least some travel time/service call fee on top of your hourly.
I bill everything I use, at a minimum 25% markup, and 40 to 50% on materials.
I also factor time spent prepping for the job, getting materials ect.
As you my truck is always fully stocked with enough consumables, and back ups of the fast moving stuff.
I keep 3 bottles of all gasses on hand at all times and refill when 2 are gone, got to have weekend supplies.
Also boxes and boxes of rod, wire, flaps and grinding wheels, wire wheels ect.
And don't forget that one day a week average you spend keeping the truck organized, clean and fixing all the little maintenance things, whether it be an hr or 2 a day or a full day, I just spent yesterday doing just that and still didn't get it all done.
With that being said, it's the big quote jobs, and emergency, off hr emergency jobs that make the real money.
I agree with all you are saying, but think if you bill all consumables, even come up with a daily charge for ppe ect and things look better quick.
Almost all other trades do it, we need to also.
Great video - love your content 🇬🇧
Great video Ant.... The costs add up, that's for sure brother. Like you say.... that's if all goes smooth and you don't hurt yourself, and need to take a few days off, or break a machine and lose revenue from being down. Thanks man
Raise them! Good video! Thanks
I did some work for a guy on an old truck in his shop using his power, my welder, my gas, my grinders, my tools etc. I told him $50 an hour. His response was he knew guys that got paid $28 working at blah blah Acme Co. Was I outta line for asking $50 an hour? Nope.
The employee was getting $28 an hour the business was probably charging $100-$120
@@tjboylan20 Exactly!
If you get a modern eurepean craftsman buses instead you will save A LOT of fuel. Something like a crafter, sprinter, Iveco daily etc.
A mobile welder friend of mine has a $150 minimum and that's after the $250 he charges just to start his truck so, really $400 minimum per job.
He's in on Long Island, NY.
I charge 225 that covers the first hour and 100 an hour after that and a lot of people tell me I'm ripping them off
You need to average the hours per week, per month from historical data. You won't hit that target 12 hours every day. Some days the costs are the same but you only work 4 hours so you lose $100.00 on that day. The next day you may do 5 hours which is a break-even day. Doing longer projection with medium averages give you a complete picture of the week/month. Frankly, your prices are too low. I would shoot for adding items to your invoice. Average the consumables, and trucking. To make things more profitable I would add 24% to your total invoice to cover the costs, plus I would add trucking. So if your bill was $500.00, add the 28% or 140.00, plus $125.oo trucking charge. Now your normal $500.00 fee climbs to $765.00. I did this exact same thing with my business and never once had anyone question the "add-on" fees because they were legitimate fees. When I did for my business those fees were pure profit that I normally wasn't getting because I bundled everything into the hourly rate.
You’re still clearing 100k a year easy and that’s better then most normal jobs out here.
I know this is gonna be a stupid question but I'm lactose intolerant which makes me gassy, is there a vehicle that is also lactose intolerant?
How much for service call to get to job?? Langford welding?
Lots of fun being a mobile rig welder. Just started doing it and my transmissions going out(I don’t hotrod my shit) so now I’m having to fork over 3k for a new 5spd transmission. But I have the money now to go buy a back up truck. So now I’m in a dilemma… do I get the back up truck and fix my main rig truck in a couple weeks or just wait and fix the main rig now?
What about big truck you going to be using it or sale ?
Yo in my country 500 per day is like a month's pay for most people
you forgot depreciation! if your trucks/welders etc cost 120k and need to be replaced every ten years that is 12k/year or 1000/month! you may have more than 120k in replacement!!! what about your health plan? than is right off your net pay too!!
I just went up to $150 an hour on the road and that’s still not enough lol
What type of fuel? Is the fuel gassy? Why can't you melt down some metals to fuel the tank?
thats basically what I was charging $75-$100 depending on what I saw, when I quit doing work, around 2010, a farmer bought metal, we had agreed for me to cut & fit & weld for $100, when I did it too fast, he got mad, then started to refuse to pay me, trying to demand I accept $25 for my work, when I laughed picked up my phone and threatened to call real BIKERS to pay him a visit & he knew I wasnt playing, he paid me, after I got home, thinking I would have not cared how bad he had been beat or killed over $100, I stopped welding away from my home, that way I had control of item from leaving my home, until paid.
as for your fuel costs, I disagree with running big truck for all running, I would have something cheap for running, & use truck for when have to work, there are plenty of small cars, or import trucks to use for light running, that will get you 30mpg, big fuel saving, plus keep lots of miles off your truck, and even though you can write fuel cost off taxes, it still affects your bottom line. I even used a 1987 Toyota to do welding with, to save fuel, versus my full size, I did use a long bed, but carried a Lincoln Ranger 9, plus my gear, small 4hp air compressor, 100' of lead, a small MIG, as needed. only carried 40CF torch tanks, unless expected to need my bigger ones & I had 3 sizes of tanks.
I mean people are gettin 600$ paychecks for 2 weeks of work. So I’d say that 550 a day ish is pretty sweet. So a two week work period is over 5000$ bucks. $10000 a month. 120000$ a year. But is 500$ a day really covering your personal risk and other expenses you have. Like putting money into the Business. This is a field with a lot of potential.