Labor Rates and Machine Rates
In shopVOX land, you can pair your itemized material price(s) with itemized labor(s) and/or a machine rate(s). Ideally this is part of your pre-determined pricing template and is set to sell in a logical manner. Such as by the square foot or by a fixed amount across a total quantity.
Labors are anything you might do or sell that is “activity” or “employee” related. A Machine Rate on the other hand is a charge based on a machine to produce part of that good. It is essentially the same setup as a labor but machines might require different price points for the speed at which it operates. Either labors or machines can be sold by the hour or unit, and can have a unique formula and rate.
There are a few things to familiarize yourself with in regards to both:
- Cost and sell price
- Setup charge, Machine charge & Other charge
- Production Rate
- Per Unit
- Cost and sell price – This is the cost per unit of measure. Cost is your cost to produce that labor and price is to customer. Price can be calculated by applying a markup on the cost.
Here a labor for PMS Color match is being set up. It is being sold as a singular charge of 35.
- Setup, Machine or Other charges – Just like a material, if there is a random charge that needs to be considered when selling this labor or machine rate, enter here so it will add that amount once to the selling rate.
- Formula – this is how shopVOX should sell the unit of measure. As an example if you want to sell your plotter time by the sign size pick “area”.
- Production Rate – This is how fast this labor or machine is based on the selling unit. For example, if you are selling your general table time (weeding, mounting etc.) by the hour at $75/hr. You can say how fast can that happen. If I put 64 square feet an hour I will be able to sell sign application at roughly 2 4×8’s per hour.
Here the production rate is set at 1 unit per unit. Which means one charge per every 1 entered. 1 = $35, 2 = $70 etc.
If you were selling by the hour but wanted to charge per sign size you’d say so many square feet per hour.
- Per Unit – is this Labor/Machine rate is applied to the quantity entered? If Yes, then check this box; if not and it’s only a one time charge do not check it.
How to Set up Labor Rates
- Start by getting to the labor page and adding new.
You can get there by clicking on Company Menu >> POS Settings >> Pricing >> Labor Rates
- Give the Labor Rate a name. Enter the cost and then markup. Don’t forget to set the selling unit.
- Once you have the selling unit, set the rate and formula. This case the formula is unit and rate is 1 unit per unit. This means the estimator will just enter how many “units” to sell when estimating.
- Decide whether or not you want to have the customer see this on their printed document.
- Also decide if you want to share with the VOX community or not. Show Internal means you want Production to see this information. Hit save.
How to Setup Machine Rates
- First things first. Go over to the add new machine menu.
- Give this machine a name. It’s helpful if you want to have a few options of this machine to include details in the name. Enter pricing details as well as the selling unit. Notice the machine also has a random charge that can be applied every time you use it. Set up charges are very common here.
- Next you’ll need to select the formula. Just like materials and labors machines can sell by a formula. Once you select your formula enter the rate. In this instance we have 1200 units per hour.
- Finally decide on final details and hit save. You may want copy this Machine Rate, which will allow you to easily create another instance of the machine. Ie. Using another Production Rate for a different Print Quality. In this example... a Black & White mode may have a Production Rate of 2400 Units per Hour.