Labour Pricing

Labour Pricing

Labour Pricing

Before you commence setting up labour, it is important that we first describe the options that are available. Then we will move on and discuss each of the areas that may be involved in completing the labour pricing set up.

Note: If you are going to use labour as your method of pricing, you must ensure that you have nominated it from within the Pricing/Markups page in Pricing category as illustrated below left.

If you are going to base your pricing on labour, then within the Pricing page you will work with three databases.
  1. Labour – Cost Manager
  2. Labour – Area Rate Manager
  3. Labour – Part Rate Manager
The first question that we need to answer is how you are going to measure your labour cost. Are you going to:
  1. Measure labour based on the time it takes for each part? – Refer Tutorial 1
  2. Measure labour based on the time it takes to complete each task at cabinet level? – Refer Tutorial 2
  3. Measure labour based on a total labour cost per cabinet? – Refer Tutorial 3
  4. Measure labour based on the material square size of a part? – Refer Tutorial 4
Each of the above will be addressed in the following four tutorials.

To make any changes, it is strongly recommended that you make all changes by using the Form button as illustrated below.



To get started, click where the arrow above is pointed.

For more on Using the Form Editor, see CabMaster Help topics [F1] from within your software as shown below.



Tutorial 1

Labour based on time it takes for each part

The first thing we must do is determine the tables that we need to work with.
  1. Since we are working at part level, the Impact must be set to By Part.
  2. Since the cost is based on time, the Mode must be set to By Time.
Therefore we will be working with the following:
  1. Labour – Cost Rate Manager
  2. Labour – Part Rate Manager 
In the Part Rate Manager form, go through and nominate which Part requires the task to be performed.

For example:

  1. Go through each part and nominate if the task is applicable and then enter the amount of time estimated for each.
    1. Labour1 is ”Cutting”.
    2. Complete this for each of the 12 Labour types.
  2. Now add the Hourly Cost in the Cost textbox within the Labour – Cost form.
Let’s take a look at an example. Impact determines where time is referenced, and Mode determines the rate that is applied to these tasks.



Result: Since “Cutting” is selected for the Part called “Bak”, the 10.00-minute time is applied against the hourly rate. Therefore the labour cost of this part would be $8.30.

Explanation of Edit Fields

Description: This field can be changed to whatever the user would like to use to describe the Task being preformed.

Cost: This is the Per Hour cost of this task. A dollar symbol must be used with all entries. If the value is 50 cents you need to enter this as $0.50.
Impact: This field is used to determine whether the Task is based on.
  1. By Cabinet will utilise the data that is stored at cabinet level.
  2. By Part will be calculated for each part that is selected.
Mode: This field nominates what cost rates are being used.
  1. By Area: Cost is calculated by the area.
  2. By Time: Cost is calculated by time (measured as minutes).

Tutorial 2

Labour based on time taken to complete each task at cabinet level

The first thing we must do it determine the tables that we need to work with.
  1. Since we are working at Cabinet Level the Impact must be set to By Cabinet.
  2. Since the cost is based on Time the Mode must be set to By Time. (Refer Tutorial 1 for explanation of Description, Cost, Impact and Mode.)
Therefore we will be working with the following:
  1. Labour – Cost Rate Manager
  2. Labour page of the Labour & Construction category of the Cabinet.

In the Labour & Construction category, on the Labour page, go through and nominate which tasks need to be performed along with the time.



Result: The task Cutting has been nominated and a quantity of 5 minutes. This is applied to the Hourly Cost of $50.00. Therefore the cost associated to cutting this cabinet is $4.16. 

Tutorial 3

Labour based on total labour cost per cabinet

The first thing we must do it determine the tables that we need to work with.
  1. Since we are working at Cabinet Level the Impact must be set to By Cabinet.
  2. Since the cost is based on Time the Mode must be set to By Time. (Refer Tutorial 1 for explanation of Description, Cost, Impact and Mode.)
Therefore we will be working with the following:
  1. Labour – Cost Rate Manager
  2. Labour page of the Labour & Construction category of the Cabinet
In the Labour & Construction category, on the Labour page, tick the checkbox beside Cabinet Labour Rate. For example, the total labour expressed in minutes for the cabinet over the page is 15.00.

Now add the Hourly Cost in the Cost column within the Desc table. For this labour type, you only need to add the rate to Labour10: Cabinet Labour Rate.



Result: In the example above, since the Cabinet Labour Rate check box is active, the cabinet will reference the Cabinet Labour Rate. Therefore the cabinet labour cost would be $15.00.

Tutorial 4

Labour based on material size of a part

The first thing we must do it determine the tables that we need to work with.
  1. Since we are working at Part Level, the Impact must be set to By Part.
  2. Since the cost is based on Material Size, the Mode must be set to By Area. (Refer Tutorial 1 for explanation of Description, Cost, Impact and Mode)
Therefore we will be working with the following tables:
  1. Labour – Cost Rate Manager
  2. Labour – Area Rates Manager
  3. Labour – Part Select Manager
Enter the material volume (in square metres) in the LabourAreaMax column. In the PartSelect table, nominate which parts is to include the various Task by nominating YES or NO. In DescCost, input the Hourly Rate.

Example:
  1. In the Labour Cost form, enter the Hourly Rate, i.e. $50.00
  2. In the Labour Area Rates form, enter the material volume (in square metres), i.e. 1.25sqm in Area(Max) edit field 
  3. In the Labour Part Rates form nominate which parts is to include the various Task, i.e. nominate by ticking the relevant box.


In the illustration above, Labour 1: Cutting has been activated for the Back (see Labour Part Rates).

Result: Since the Back is greater than 0.75sqm and not greater than 1.25sqm, the table references the time required – 2.00 minutes – and then applies this to the hourly rate divided by 60. Therefore the labour cost for the Back would be $1.66.
TIP: Click the attachment to download this HowTo to your desktop as a .pdf

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