What areas do you fall short in as far as mahining time spent versus cost charged out.
The formula used to determine profit looks like you want the shop to be at $100/Hr but at $67/hr with wages subtracted. Am I reading this correct??
The only way I see it is if the shop wants $100/hr then labour has to increase to cover wage cost or get more production in the same shop time spent.

While every shop wants to make money on every operation sometimes its hard to profit.
Cleaning is a big area where you have to be fast and efficieant and have low labor cost.
Machining time for most engines can be figured out based on how long it takes a good machinist to do the basic work not including assembly.

Look at head work.
It needs to be cleaned then the casting needs to be checked for cracks etc. before the machining can begin.
Now the machining starts and depending on the work being done basic stuff like guides and seats are machined.
Now the valves either get ground or replaced and the deck face machined.
Cleaning and reassembly is done to finish the job.

Are you doing more then a single head or heads in job order or doing heads in a production line where minimal re-setting of tooling and fixturing is needed so the set up time from job to job is faster and more efficent or just rolling with the jobs as they come in the door in customer order??

I know the feeling. I had a guy drop off a set of Chrysler 360 heads yesterday for an evaluation from another customer of his that.someone did the seats but did nothing about the guides. The exh. valves were sunk so far into the heads that they needed .100 off the tips to be even with the Int.'s which were a little too high.
I told the owner of the heads that he needs to deal with the guide and seat issues before I can do anything with them.And they will need seats installed to get the valve heights back to spec.
The valves did not seal at all and he got pissy about it when I told hin they needed seats installed to correct the 1st screw up.
He again suggested they should be fine and wanted nothing to do with guide replacement.
Then when told to pick them up and go else where then he asked why and I just told him I will not put my name on junk and have an unsatified customer because I only did half the job.


I took a look at costs a few years back and found where there were gains and loss;s and decided that loss's were no longer acceptable in any areas.
Guys complained I cost too much for a year or so but after a while most of the shop guys came around again.
$95 an hour is not asking a lot with the investment we all have and when compared to other trades like plumbers or carpenter's or other skilled trades we do seem to get the short end of the stick at time.

But now I compare myself to a dentist doing cosmetic bridgework. When was the last time you got to haggle with a dentist about a tooth ache or a lawyer about collecting a bad debt and got anywhere.

Just saying stand your ground if they don't like the cost they can shop around anyway mean time the BS time you saved on his stupidity can be doing something you would rather do.