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larry kritsch Posted: Jan 18, 2008 08:38 PM	pricing i have been ask by a local tank manufactuer to apply 2.5lb closed cell foam to hot water tanks they produce.the tanks are made out of mild steel and would come with an epoxy coating.smallest being 42 inches wide by 48inches tall.largest being 60 inches by 120 inches tall.they said i could do up to 100 tanks a year.they also want a acrylic top coat. although i do stuff in my shop for myself i have no idea what i should charge.i'm hoping you guys could enlighten me.i've learned alot from from this board and i hope you can help me with this one. i live in calif.thanks
mason Posted: Jan 19, 2008 04:38 PM	Small jobs done at your shop can be a good source of income in lean times or when the weather is bad. Your pricing will be based on a number of factors such as: 1. Is there a specific deadline to insulate the tanks? Do you have to drop everything to do the work or can you do it in your spare time when work is slow. If there is specific deadline consider that you may at time have to insulate a tank and tie up your rig(s) when they are needed elsewhere. 2. How many can you do at once? The larger the number, the better price you can provide. 3. How much will they pay? Sometimes tank insulation projects can be very proftitable. I know a few specialty metal fabricators that have contracts for small tanks that cost $30,000 each because of the very strict specifications for them. They are very particular about the quality of the application and are willing to pay 3-4 times the going rate to insulate the tanks to get the job exactly as they want it. But you have less than a 1/8 inch tolerance on thickness of the foam and want a smooth surface. Lots of trimmng can add costs. Others have a comodity item and want the absolute rock bottom price and will accept a cheaper standard of quality. 4. How much masking and trimming will it take? My experience with insulating small tanks is that there is 2-4 times more labor spent masking and trimming as spraying the tanks. 5. Is it worth the hassle? Look at the annual return for the amount of time and labor. If you take 10 days to make a profit of $2500, that is not a good use of your time and resources. Before committing to a long term price structure, insulate a few tanks for them at a time and materials price and see how long it takes to do it to their satisfaction. Then do the final pricing based on the experience. Good luck,

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Comments

larry kritsch

Posted: Jan 18, 2008 08:38 PM

pricing

i have been ask by a local tank manufactuer to apply 2.5lb closed cell foam to hot water
tanks they produce.the tanks are made out of mild steel and would come with an epoxy coating.smallest being 42 inches wide by 48inches tall.largest being 60 inches by 120 inches tall.they said i could do up to 100 tanks a year.they also want a acrylic top coat. although i do stuff in my shop for myself i have no idea what i should charge.i'm hoping you guys could enlighten me.i've learned alot from from this board and i hope you can help me with this one. i live in calif.thanks

mason

Posted: Jan 19, 2008 04:38 PM

Small jobs done at your shop can be a good source of income in lean times or when the weather is bad.

Your pricing will be based on a number of factors such as:

1. Is there a specific deadline to insulate the tanks? Do you have to drop everything to do the work or can you do it in your spare time when work is slow. If there is specific deadline consider that you may at time have to insulate a tank and tie up your rig(s) when they are needed elsewhere.
2. How many can you do at once? The larger the number, the better price you can provide.
3. How much will they pay? Sometimes tank insulation projects can be very proftitable. I know a few specialty metal fabricators that have contracts for small tanks that cost $30,000 each because of the very strict specifications for them. They are very particular about the quality of the application and are willing to pay 3-4 times the going rate to insulate the tanks to get the job exactly as they want it. But you have less than a 1/8 inch tolerance on thickness of the foam and want a smooth surface. Lots of trimmng can add costs.

Others have a comodity item and want the absolute rock bottom price and will accept a cheaper standard of quality.

4. How much masking and trimming will it take? My experience with insulating small tanks is that there is 2-4 times more labor spent masking and trimming as spraying the tanks.

5. Is it worth the hassle? Look at the annual return for the amount of time and labor. If you take 10 days to make a profit of $2500, that is not a good use of your time and resources.

Before committing to a long term price structure, insulate a few tanks for them at a time and materials price and see how long it takes to do it to their satisfaction. Then do the final pricing based on the experience.

Good luck,

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