Pricing question

[Michel Robillard]

235420
Hi guys,
As a newbie, I need some help...
I would like to know if I miss something there.
I just did a job of 38 plaques in Rowmark LM922-602, Red with white engraving.
Of course, I needed 2 passes for a clean job
My wholesaler gave me the material and the file in .cdr
I just had to cut the plaques 6" X 10" then engrave them
I charged $12.50 each
To do the job i took 30 minutes to cut the plaques on my CNC
and 3.5 hours for engraving
Total for job : 4 hours for $475.00, cut, set-up and engraving included
A competitor that I know called me and said that I am really to cheap.
Should I work for more than $118.00 per hour????
By the this job was for a VERY good customer to me.
Thanks for your advices
I included a file to show what I had to engrave

Best regards,

Michel
TROTEC SPEEDY 300 60Watts

[Martin Boekers]

They supplied the material too? That seems fair pricing to me. Many here get $60-$125 an hour for lasering
plus a set up fee.

Looks like you are making good use of your equipment. Beware what competitors say :), he may not have the CNC and was charging
more to do it all laser because it would take longer.

Pricing is always a challenge, there will always be someone hirer and someone lower, sell the on service that can seperate you more than pricing.

[Michel Robillard]

Thanks Martin,
I don't want to work for peanuts
but when I work for more than $100.00 per hour on each machine, I am happy
And CNC not faster than the laser for vector cuts, but for me the job is looking better.
That's why I prepare the plaque first with my router
If someone want to be lower price, I don't care.
Peanuts are for squirrels, not for me, lollll
I wondering just because it's not the first time someone complain my prices.
I bought my laser because I was fed up to give my jobs for stupids people who don't know how to use laser.
Thanks Martin and good luck to you

Michel
TROTEC SPEEDY 300 60Watts
Dimension 200 Gerber

[Larry Bratton]

That's right...figure out what YOU need and will be happy with and forget your competitor calling you up. You ate his lunch with the CNC for the cutout.
Next time somebody asks "How do you do that?" Answer-due to superior skill and cunning!

[George Beck]

Hi Michel

One may charge as one desires. One thing about market dynamics, the market will let you know if you are over priced as you will not have any orders. As you are new, I would remind you that the $118 is not all for you. Many new people forget overhead (rent, electricity, phone, business cards, maintenance, equipment, bits, your time listening to jealous competitors). These are all part of the cost of the product as well. My accountant (another expense) had me keep every single expense for a year. Then divide that expense by hours worked or products sold depending on your costing method. I was surprised that items actually were costing me twice what I thought they cost. If you are doing this, then I beg your pardon. I have known many new engravers who were shocked upon visiting an accountant to learn that they were working 60 hours a week for minimum wage. To make matters even more simple, If the customer is happy with the price and the work, well There ya go!

George

[Joe Pelonio]

Based on your description of the job, I'd be at about $15 each wholesale with supplied material for that, but then everything seems to cost more in our area. When I have had complaints and they checked elsewhere they have come back.