Calculating True Machine Hour Rates

If your quotes feel competitive but your margins keep shrinking, the problem often starts with an underestimated machine hour rate. Many digital manufacturers use a simple formula — purchase price divided by expected hours — and stop there. That approach misses the...

How to Calculate Real Machine Hour Rates

Ask ten shop owners how they calculate machine hour rates and you’ll get ten different answers — most of them incomplete. Some use a flat $75/hr for everything. Others take the machine purchase price, divide by five years, and call it a day. Neither approach...