Job Cost

[Ernie Martinez]

I was asked to bid on a job to engrave 100 anodized water bottles. I based my estimates on 1$ per minute of laser time. 1 bottle takes 6 minutes to engrave. With a bottle cost of 1$ that brings me to $7 per bottle, which seems rather high. How would this compare to dye sub or other printing method? I'm not concerned about set up costs.

Is $1 per minute of laser time too high?

Thanks

[Dee Gallo]

This is just my personal opinion, take it for what's worth:

I think your $7 is more than fair, especially since you are not charging a setup fee (normally $30-50 everywhere else). If your customer thinks it is too much, let them go to an online company and wade through the ordering process, pay the setup fee and shipping, hope they get what they ordered in a timely manner.... and they can see how your price is a good deal.

I believe that a lot of artisans/craftsmen lowball their prices in hopes of getting a customer... at the expense of their own time and effort. If you feel your price is fair, then go with it. Don't let them "guilt" you into working for nothing, appearing insecure and desperate just makes them try to take advantage of you.

Use your own judgment, only you can decide what your time, expertise and overhead are worth in relation to building your business.

cheers, dee

[Ernie Martinez]

Thanks Dee,

I haven't quoted yet, I just thought it seemed high. I just wanted to hear from the old pro's out there, to make sure I wasn't out in left field.

[Martin Boekers]

I sell JDS bottles ($2.99) engraved for $15. So I think you are on target. I found that if the engraving area holds some of the color Windex and a "magic sponge" cleans it up quickly.
Be carefull of the quality if thye provide the bottles, may be 'Dollar Store" and inconsistant coatings which can cause havoc.

[Mike Null]

I think your pricing will quickly put you out of business. The bottle costs $1 so you're going to charge $1. $1 per minute for engraving time wasn't enough 20 years ago.

[Ernie Martinez]

May I ask what I should be charging for laser time?

[Mike Null]

Ernie

There have been a lot of threads on this topic so a search will turn up an evening's reading.

Suppose for example that next month you have to spend $1500 to replace your tube. Have you reserved for that from your sales income. Did you consider rent, overhead, other materials, your time, inbound freight, handling and packaging?

The bottom line to all pricing is whether you're happy with it.

[Martin Boekers]

It's tough sometimes, I lower the price on my bottles to $15 as that is were the competion is. I was at $18.
I make my money on other projects. The fun comes in juggling your prices while being competitive and still coming
up roses at the end of the year. :)

One thing I think many that charge $60 an hour get set up fees are have a decent markup on the product they supply.
I do charge extra if a client provides their own product.

[Scott Shepherd]

May I ask what I should be charging for laser time?

What does that have to do with anything? You don't try and charge by the minute, you charge by the market. If the market value of a product that's sold in 20 other places is $15, and you buy it for $1 and spend 2 minutes making it, why on earth would you sell it for $3 and think you're making a killing? You charge $14.75 and keep rolling.

Understanding and applying that has taken me longer than I care to admit, but it's the truth. I've had many jobs cost out at $400 an hour on laser time. So what? I charged the market price for those products and they couldn't have gotten them cheaper elsewhere.

If you have 10 shops in your area that charge $8 for name tags, and you can make them for .50 cents in material, a .50 cent magnet, and 60 seconds engraving, would you charge $2.00 for name tags? I wouldn't.

Do some market research (call other shops) in your area and charge accordingly. There's nothing wrong with not knowing, but don't fall into the "dollars per minute" trap. Your laser time has very little to do with pricing in many cases.

Just my opinion.

[Gary Hair]

but don't fall into the "dollars per minute" trap. Your laser time has very little to do with pricing in many cases.

Just my opinion.

Your point is a great one and should be repeated many times! Dollars per minute is just a starting point and a bit of a reality check. I target $120/hour *at a minimum* and it's very rare that I don't get several times that much. I do, however, have a few steady, bread and butter, clients that get their engraving for less than that but they total up to be a pretty sizable chunk of money per year, enough to buy a new laser about every 6 months...

Price is always some form of ((cost of goods sold * (some number)) + ((setup, prep, laser, cleanup, packaging)*hourly rate) + "market adjustment") - discounts. You need to come up with the "some number", "hourly rate", and "market adjustment" that make sense for you.

Gary

[Ross Moshinsky]

The reason the number sounds high is because it is.

There are certain things the average small shop can't do and make money on. Laser engraving 100 water bottles you'll never be able to charge enough. Subbing the job out to someone who does silk screening will result in a higher profit margin and a much better price. http://mugmart.com/26-oz-black-excursion-sports-bottle.html

[Ernie Martinez]

I looked at the site. Based on their imprint area, I am not charging enough. I'm doing a Logo, a photo, and text which spans almost the entire height of the bottle, and 1/2 the circumference. I could engrave what they show in 1/4 the time, which based on my current price calculation would be below their price.

I appreciate everyone's input, I've got a better (albeit still limited) understanding.

[James E Graham]

Pricing has been the hardest thing for me so far (open for 2 months now). Only selling some random stuff and things I thought would sell have not. Definetely not making a living on this yet. Have had lots of people say they are going to order stuff for Christmas, but only couple have followed through. Having lots of fun though.