Thought on pricing

[Tim Baude]

Hi all,
I have a local scrapbooking business that would like me to do 8.5 x 11 sheets of cardstock with with 9 identical design. I am figuring on what to quote to make it realistic on my end and theirs. I figure around 8-10 minutes per sheet, maybe less. I was thinking in the 6.50-7.00 range per sheet and less for 10+ sheets. I didn't know if anyone else has done this. This is just rastering, no cutting. She has a demand for local HS and the local college. If anyone can help, that would be great. This will probably lead to more work with her shop as she carries arts and crafts and small gifts and has interest in keychains, stencils and such. We are not doing consignment, but rather wholesale. How do you most of you figure your wholesale prices. Thank you for any help.

[Craig Hogarth]

IMO, $7 for 8 min on the wholesale side is reasonable, although others charge a lot more. However, I would require a 1 hour minimum for that price though.

[Stephen Beckham]

Tim,

I go as low as 50 cents per minute depending on customer's past purchases... The more someone comes back to get etching to resale in their own venue - the more of a discount I'll give off the $1 per minute standard.

I've got one retailer that keeps coming back to get more etching - he has spent upwards of $500 a month on stock designs. We've got a understanding that he's not a priority at his rate, but a filler for when my laser is dorment. He gets a great rate - I get to keep my laser firing... Oh and it's affordable for him to sale the stuff and still make a profit.

As far as a minimum - well - I joking tell people "the minimum is one, because you can't buy none." We'll laugh about it and in the end, they don't feel like they are getting into a one-year wireless agreement with a cancellation fee attached. I do express the desire to have multiples brought in or I'll have charge a setup fee and such. Ocassionally I'll get a onesy - but if you get a good relationship, they won't try to milk you - they'll try to stay in your good graces...

On your deal - ask yourself - how much can they sell it for? If they can only get $9 for the page, then they might not go for $7. If it's an item they can sell for $20 - then they would feel like they are getting a steal from you. Sometimes the price is not about the per minute charge, but what the market will handle...

I'll get shot down again because I am against the opinion of "your price shouldn't depend on what they can sell if for" (search past threads). But ask yourself - if I can only mark up an item 10-15% to sell it - would I carry it as stock or not. So why should we expect retailers that come to us for etching to take that kind of deal - any fool can give it away... But a smart person would find a way to make the deal lucrative for both parties not just the laser etching party...

[Lisa Griffiths]

I totally agree with everything Steve said. Paper is perceived at a much lower level than say a plaque - no matter how much time is spent on it and you will just not be able to charge the same rate you would charge for engraving a plaque etc...

I can tell you from personal experience that $12 - $14 retail for an 8.5 x 11 sheet will probably be a very hard sell for the store. The scrapbooking industry is a totally different animal than the awards business etc... and while some people will pay anything if they really want it, most scrapbookers will look at it as "What?! $14 for a sheet of paper?"

The store will probably only be able to retail it at about half that if they are lucky, depending on the actual design and how affluent the area is where the store is located. People do realize that custom lasered designs are more costly, but after all it's "just" paper to them.

[Dan Hintz]

I'm seeing pre-designed 12"x12" scrapbook pages at the local hobby stores (e.g., Michael's) for about $7... and I have to say, they look pretty good, particularly for the money. All you do is paste in a few photos, all of the surrounding 3-dimensional frills have been done for you. If you can't make a similar page for at least 20% less, you won't be selling against any major retailer.

[Tim Baude]

Thank you for all the input....to clarify, the page will have 9-12 images with each being sold individually after being cut. She will cut. The store now offers ind. pieces from $1-$2. I will haggle, as I am starting out and want to build relationship. If I have to cut, I will have to add a little. We will just see how it goes.
Thanks