Episode #20: Machine Shop Profit | How to Handle the 20% of Jobs You Lose Money On

Are you losing money on jobs in your machine shop without realizing it?

In this episode of the Machine Shop Growth Podcast, Mike Fritz and Kirk Phelps break down how to identify and fix the 20% of machine shop jobs that quietly destroy your profit margin. From legacy pricing and inaccurate burden rates to poor payment terms and customer concentration risk, we unpack the real reasons job shops struggle with profitability.

You’ll learn how to:

• Calculate your true machine shop burden rate
• Identify unprofitable jobs using simple time studies
• Decide when to blend margin vs. renegotiate pricing
• Protect cash flow from long payment terms
• Stay the solution for your customer — even if you don’t machine the part

Many manufacturing businesses think they have a sales problem.
 Often, they have a margin visibility problem.

If you run a machine shop, job shop, or manufacturing business and want to improve profitability without sacrificing customer relationships, this episode gives you a clear, practical framework to follow.

Because being busy isn’t the goal.
Being profitable is.