Moss Gallo1
06-21-2013, 8:49 PM
Gentlemen,
Can you please offer advice on how best to price this project? I have a potential long term customer that needs cutting for 35 sets of fabric pieces that could lead to medium and higher volume orders. I do not want to scare them off with too high of a price.
Other Issues:
I'm still in the process of acquiring my laser and have to sub out the laser cutting to others.
I've received quotes from my subs but they are at both ends of the spectrum ($35 per set and $60 per set).
I've been reading everything on the forums and online about pricing laser cutting and am still not sure on how to best to approach this for a quote I need to have out by Monday.
Project Description:
Laser cut a neoprene coated fabric. There are four pieces and each piece has a lot of circles and squares that need to be cut into them.
The fabric is 60 inches wide and comes in big heavy rolls.
It takes time to layup everything and precut the fabric with scissors to fit into the laser.
The fabric makes hydrogen chloride fumes, so there is the added cost of fume scrubbers/exhausts that come with all this.
Quantity: 35 of each piece
Pieces to cut:
#1 takes 20 minutes
#2 takes 20 minutes
#3 takes 7 minutes
#4 takes 7 minutes
Washing & Drying
I have to wash and dry the pieces after they are cut because they stink something fierce and have scorch/soot marks.
The washing would be done at a laundry mat or in my home machines. I would let the pieces air dry to be safe.
For higher volume in the future I would outsource this to an industrial washer or buy a few used washing machines to do the work.
Shipping:
I'm going to have to absorb some of the shipping costs (I'm raising my per minute and setup charge to cover).
The customer will pay to have the materials shipped to me and back to them.
I will have to pay the shipping to my subs (I can't take the chance of my subs or customer connecting and cutting me out of the business). Subs will then ship all the cut pieces back to me to have them washed & dried before everything goes back to my customer.
I am working on getting them to sign an agreement that would keep them from ever doing business with my customers but they can always tell me no.
Subcontractor's Prices (I have worked with both Subs before and Sub 1 does the best work but is many states away from me, Sub #2 is in my city):
Sub 1: $35 per set (no setup fee)
Sub 2: $60 per set (no setup fee)
Pricing strategy:
I was planning on pricing this as a set to the customer for the laser cutting, washing, and drying in addition to a setup fee.
Strategy #1:
Setup Charge: $100
Laser Cutting (per set): $65.00
Washing & Drying (per set): $15.00
Total: $3,300.00
Strategy #2:
Setup Charge: $100
Laser Cutting (per set): $40.00
Washing & Drying (per set): $15.00
Total: $2,300
Strategy #3:
Setup Charge: $ ?
Laser Cutting (per set): $ ?
Washing & Drying (per set): $ ?
Total: $ ?
Thank you for reading!
Can you please offer advice on how best to price this project? I have a potential long term customer that needs cutting for 35 sets of fabric pieces that could lead to medium and higher volume orders. I do not want to scare them off with too high of a price.
Other Issues:
I'm still in the process of acquiring my laser and have to sub out the laser cutting to others.
I've received quotes from my subs but they are at both ends of the spectrum ($35 per set and $60 per set).
I've been reading everything on the forums and online about pricing laser cutting and am still not sure on how to best to approach this for a quote I need to have out by Monday.
Project Description:
Laser cut a neoprene coated fabric. There are four pieces and each piece has a lot of circles and squares that need to be cut into them.
The fabric is 60 inches wide and comes in big heavy rolls.
It takes time to layup everything and precut the fabric with scissors to fit into the laser.
The fabric makes hydrogen chloride fumes, so there is the added cost of fume scrubbers/exhausts that come with all this.
Quantity: 35 of each piece
Pieces to cut:
#1 takes 20 minutes
#2 takes 20 minutes
#3 takes 7 minutes
#4 takes 7 minutes
Washing & Drying
I have to wash and dry the pieces after they are cut because they stink something fierce and have scorch/soot marks.
The washing would be done at a laundry mat or in my home machines. I would let the pieces air dry to be safe.
For higher volume in the future I would outsource this to an industrial washer or buy a few used washing machines to do the work.
Shipping:
I'm going to have to absorb some of the shipping costs (I'm raising my per minute and setup charge to cover).
The customer will pay to have the materials shipped to me and back to them.
I will have to pay the shipping to my subs (I can't take the chance of my subs or customer connecting and cutting me out of the business). Subs will then ship all the cut pieces back to me to have them washed & dried before everything goes back to my customer.
I am working on getting them to sign an agreement that would keep them from ever doing business with my customers but they can always tell me no.
Subcontractor's Prices (I have worked with both Subs before and Sub 1 does the best work but is many states away from me, Sub #2 is in my city):
Sub 1: $35 per set (no setup fee)
Sub 2: $60 per set (no setup fee)
Pricing strategy:
I was planning on pricing this as a set to the customer for the laser cutting, washing, and drying in addition to a setup fee.
Strategy #1:
Setup Charge: $100
Laser Cutting (per set): $65.00
Washing & Drying (per set): $15.00
Total: $3,300.00
Strategy #2:
Setup Charge: $100
Laser Cutting (per set): $40.00
Washing & Drying (per set): $15.00
Total: $2,300
Strategy #3:
Setup Charge: $ ?
Laser Cutting (per set): $ ?
Washing & Drying (per set): $ ?
Total: $ ?
Thank you for reading!