How to Price Fabrication Jobs Without Losing Margin
Fabrication quotes often miss hidden labor, consumables and overhead. Start with direct labor, add materials and consumables, allocate overhead, then apply a deliberate markup.
1. Calculate direct labor
Multiply realistic productive hours by the labor rate you actually need to recover.
2. Add materials and consumables
Include raw material, welding consumables, gas, tooling wear and other job-specific items.
3. Allocate overhead
Rent, utilities, maintenance, software, administration and unproductive shop time still need to be recovered.
4. Separate markup from margin
Markup is added to cost; margin is profit as a percentage of selling price. They are not interchangeable.