Sheet metal, CNC shops, machine shops and many other job shops provide a valuable service to their customers. For a job shop to be a profitable business, the service rate should cover the cost of doing business plus have a certain amount of margin or profit built into the price customers pay. If this is too low, you will be gaining new work but this will only last as long as you have money in the bank. You business will fail because the owner needs to earn an income. If the price is too high, customers will choose a competitor. Some high level ways to calculate your hourly shop rate is shown below. Hourly rate calculations are not that complicated but should be looked at carefully in order to be a profitable company.
MIE Solutions offers a made to order job shop ERP system designed for the manufacturer of goods and products. Most accounting systems are designed for the basic AR, AP and GL side of financials where a manufacturing software product deals with the actual production of the goods and services. MIE Trak is a full featured ERP system for the made to order and engineer to order manufacturer.