The role of hourly rates in precision engineering software success

For subcontract precision engineering businesses, many elements make up an estimate and subsequent quotation to a potential customer. PSL Datatrack has provided precision engineers with estimating to invoicing software for over 35 years, encountering many common questions along the way, including: what is an hourly charge-out rate?

Accurate hourly charge-out rates are an essential part of the estimating process, where the recovery of costs such as machines, labour and overheads (in addition to direct costs) is necessary to have a profitable business.

The PSL Datatrack ‘Guide to Hourly Rates’ provides an introduction to the process of calculating these figures, aiming to provide precision engineering companies with the means to determine whether their current estimating procedures are suited to company requirements.