← Back to checklist page · Print / Save as PDF

1. 1
   You're pricing off your old employee wage

   "I made $32/hr employed, so $55/hr is great money." Wrong. Your real loaded shop rate needs to cover rent, gas, insurance, equipment depreciation, non-billable hours, and profit. Most solo shops need to bill $85–$165/hr to net what a good employee earns.

   The fix: Build a loaded shop rate calculator — rent, insurance, depreciation, non-billable hours, profit. Never quote below it, even on jobs you want.

2. 2
   You take any job that comes in

   No niche = no repeatable process = commodity pricing = you compete on price every time. Shops that specialize build efficiency and command premiums.

   The fix: Pick one vertical — trailers, gates, structural, custom fab — and own it. Specialists charge more and waste less time on one-off quotes.

3. 3
   You're the only one who can quote

   If every estimate requires your judgment, your quoting is the bottleneck on growth. One owner can quote 5–8 jobs/week. That's your revenue ceiling.

   The fix: Document quoting formulas for your top 5 job types. A helper should be able to ballpark 80% of quotes from your sheet.

4. 4
   You never track setup time separately

   Setup is where fabrication margins go to die. Underpricing setup makes jobs look profitable on paper until you actually run the shop rate math.

   The fix: Line-item setup on every quote with a minimum setup fee on all custom work. If setup isn't on the invoice, you're donating labor.

5. 5
   You bought equipment to compensate for underpricing

   Equipment debt at $750K–$1M revenue is a structural trap. Shops that underprice often buy gear to increase capacity, but they're just adding overhead to thin margins.

   The fix: Fix pricing before buying capacity — margin first, then machines. A faster welder on thin margins just loses money faster.

6. 6
   You invoice late and chase payment slow

   Cash out before cash in. Unpaid invoices + loose payment terms at scale = cash crunch. Most fabrication shops have 30–60 days of receivables sitting uncollected.

   The fix: 50% deposit on custom work, net-15 terms, invoice same day as completion. No deposit, no schedule — non-negotiable on custom fab.

7. 7
   No repeat customers, no recurring contracts

   Every job is a new acquisition. Shops that build relationships with contractors, developers, or manufacturers get repeat volume at predictable margins.

   The fix: Target 3–5 anchor accounts that feed you steady repeat work. One GC on retainer beats ten one-off homeowners.

8. 8
   You're invisible to new customers

   Most welding shops have zero digital presence. A Google Business Profile with photos and reviews is more lead generation than most shops have ever done.

   The fix: Google Business Profile plus photos of your best 10 projects this week. Fabrication buyers Google you before they call — show up.

9. 9
   Everything lives in your head

   No SOPs, no documented process, can't train a helper to be consistent. The business can't scale past what one person holds in memory.

   The fix: Write down your process for your 3 most common job types. Cut lists, weld sequence, finish standards — if it's not written, it doesn't scale.

10. 10
    You're chasing revenue instead of margin

    At $700K–$900K in revenue on thin margins, the shop is maxed out, stressed, and barely profitable. Raising prices and declining bad-fit jobs is the move — not more volume.

    The fix: Raise prices 15% on your next 10 quotes and fire your worst 2 customers. Less revenue at real margin beats busy and broke.