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170-012 - Setting Charge Out Rates For Manufacturing Businesses

One of the most difficult tasks for a manufacturing business is the setting of realistic charge out rates. This paper includes commentary on: Setting Charge Out Rates Is A Difficult Step Charge Out Rates Can Determine Profit Or Loss Charge Out Rate Fallacies What Is Your Client's Cost? Why Do ...Read more
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One of the most difficult tasks for a manufacturing business is the setting of realistic charge out rates. This paper includes commentary on:

  • Setting Charge Out Rates Is A Difficult Step
  • Charge Out Rates Can Determine Profit Or Loss
  • Charge Out Rate Fallacies
  • What Is Your Client's Cost?
  • Why Do Your Clients Buy?
  • Competitors’ Intelligence Files
  • Client's Decision Process
  • Understand Client's Perception On Pricing
  • What Are The Business’ Overheads?
  • Wastage
  • Defects/Reworks
  • Green Manufacturing
  • Quality Control
  • Client's Perception On Prices
  • Service And Response Time Is Important In Establishing A “Premium” Charge Out Rate
  • Differentiate Your Business
  • Client Contact Form
  • Quote/Job Check List
  • Material Mark Up Percentage
  • Sub Contract Mark Up Percentage
  • Defects/Reworks Charging
  • Labour Classification
  • Employee Productivity
  • Targeted Net Profit
  • Labour Oncosts
  • Calculation Of Required Labour Charge Out Rates
  • Proof - Budgeted Profitability
  • Quotation/Budget Preparation
  • Quotation Results
  • Key Performance Indicators To Be Monitored