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2.23. Do I need to complete the Hourly Rate Wizard, or can I just enter my own rates somewhere?

Q:  Do I need to complete the Hourly Rate Wizard, or can I just enter my own rates somewhere?

 

A:  If you are a new EstiMate user, or especially if you've just started business the it will definitely behoove you to fill out the Hourly Rate Wizard, and let EstiMate suggest an hourly rate for you.  It will then apply this rate to both your hourly design and production rates. 

If you already use EstiMate then when you import your data into EstiMate 2 all of your hourly rates will automatically come over into the new software (NOTE:  If you filled in the Hourly Rate Wizard / Overhead Worksheet in EstiMate 1 that information (your expenses) will not come over, just the hourly rates you have set up).  If you've moved locations, hired more employees, bought new equipment, etc. it might be in your best interest to run the Hourly Rate Wizard again too at least to see what EstiMate 2 now thinks you should be charging per hour based on that new information.

 

To run the Hourly Rate Wizard:

• Click the Configure And Manage tab > Hourly Rate Wizard.

• Read the information on the Welcome screen, and click Next to go to the Overhead Worksheet.

 

Overhead Worksheet.

• On the Overhead Worksheet screen select whether you want to put your expenses in Weekly, Monthly, or Annual amounts.

• Fill in all the applicable fields.  Remember to account for circumstances that may not be monthly but will arise as expenses throughout the year. 

• Use any of the "OTHER" fields at the bottom right for categories we may not have supplied.  The word other can be edited so you can remind yourself what you meant by that category for future use.

• Make sure to click SAVE CHANGES at the bottom right whenever you update this.  The wizard will automatically prompt you that your hourly rate can be updated due to those changes.  If you're not ready to update your rates yet just click NO.  Click the Next button to proceed to the next tab "Work, Profit, and Taxes".

 

Work, Profit, and Taxes.

• Under "Work" enter the number of days you work in one week (In other words the number of days you are open in a week).

 

• Enter the number of weeks you work in one year, making sure to deduct for vacations and holidays when the shop may be closed.

• List your staff.  Include everyone who performs tasks that help produce your jobs.  (Remember to include both your design staff and your production staff.)  (TIP:  To be realistic, a good starting point is approx. 6 hours a day per full time employee.  This allows for other tasks that must be performed during a typical 8 hour work day.  Then, adjust as needed per employee if applicable.)

• Under "Profit" select a "Specific Amount", or a "Percentage".  You actually get to specify what you would ideally like to make in net profit!  Yes, it can be THIS simple!  Depending on what you just selected enter the dollar amount, and how often (weekly, monthly, or annually) you wan't to see this profit, or select the percentage you'd like to see as profit after taxes.
  

• Under "Taxes" you can enter a percentage that can be referred to as your 'tax bracket'.  Remember to include any and all taxes you are required to pay.
  

• Click the "Save Changes" button to save your current changes, and/or click the Next button to see your suggested hourly rate.

Summary.

• On this screen you will see a summary of your expenses, billable hours, taxes, and profits, and what EstiMate recommends you charge to meet these goals.

• Click Save Changes to save your information, and if your happy with this rate click the "Yes" button when EstiMate asks if you want that rate applied to your design and production hourly rates. 

If you just want to enter your rates without using the Hourly Rate Wizard:

• Click Items > Labor Rates.

• The two default labor rates in the system are Design and Production.  To change either of these double click on them, enter the new rate, select if the rate is per hour or per minute.  If it's a design rate put a check in the box that says "Is a design rate".  Click the OK button to save your changes.
  

• If you need to add additional labor rates click the "Labor Rates" button in the bottom left corner, and select New.

• Type in the "Name" for this labor Rate, enter the new rate, select if the rate is per hour or per minute.  If it's a design rate put a check in the box that says "Is a design rate".  Click the OK button to save and create your new rate.