Do I Need Shop Rate Costing Assistance?

• Bid jobs without a procedure?
• Need a bidding procedure that reflects actual costs?
• Contract production for other companies but don't make a profit?
• "Shop rate" does not cover all of your expenses?
  

If YES, your company could benefit from Shop Rate Costing Assistance….

Shop Rate Costing System is…
a management tool that identifies the estimated cost of a bidded job. It defines a system for bidding new jobs which identifies those that best fit your equipment and employee skill level.

What are the benefits; why do I need to go through all the trouble?

• Maximizes profits
• Eliminates losses
• Sets standards for choosing profitable jobs

How can MMEC help implement Shop Rate Costing system?
MMEC works with you and your team to investigate the actual cost for each bidded job and develop a customized spreadsheet to calculate actual job costs. Together with you and your team, we identify variable costs such as labor, materials, equipment replacement, and shop efficiency for each job. Then, we apply variable costs and historical overhead expenses (indirect labor, rent, lights, etc.) to determine the actual job cost. We will help you develop a standardized system for judging and choosing which bidded jobs are profitable and fit your equipment and employee skill level.