01Count the real operating cost
Start with the costs that exist whether the floor is full or quiet.
- List premises, equipment, software, insurance, administration and training.
- Separate paid hours from realistically billable hours.
- Include a deliberate allowance for reinvestment and profit.
02Protect diagnostic work
Thinking, testing and confirming are skilled work even when no part is fitted.
- Define a diagnostic starting charge.
- Explain what the diagnostic process includes.
- Ask for approval before the investigation expands.
03Review with evidence
A rate should change because the workshop economics changed, not because a nearby shop guessed differently.
- Compare sold hours with available productive hours.
- Review under-recovered time and repeat work.
- Recalculate after major rent, wage or equipment changes.