I have been designing machinery and parts as well as programming machine tools for 20 + years now. Recently I purchased several Cad Cam systems and a work station. I do a good bit of my work from home. I have decided to try to do some freelance work,but I really have no idea what people are charging for these services. Can any one offer any advise as to what is fair market value for this kind of service? I don't want to price myself out of the market, but also do not want to sell myself short.
Jack, use what you have been paid by employers as a starting point, then triple it to figure what they actually value your services at. You can see this in action at the local garage, where the mechanic makes $25/hr & the garage bills time at $75. Your overhead is a bit lower, unless you are paying solo rates for health insurance, so maybe you can come down a bit.
Becuase of your low overhead; Quote at $75 per hour, but offer first time customers a 50% discount. Once you build a solid(pun intended) customer base, you can choos to stop discount. A limited time offer might help speed things up too. "Hot July offer, 1st time customers get 50% off". Just an idea.
Jack ... take your annual salary on your "normal" job. Divide that by 2080 ... the hours in a "normal" American work year. Take that rate and multiply by 1.5 ... most companies these days carry about a 50% overhead rate ... which means the cost of having you around is 1.5 times the hourly rate they pay you. Then add whatever profit margin you think you will need. A good working number for a profit target is 25% ... BUT, most companies actually see between 6 - 10% after it's all said and done.