Another pricing question

[Chip Peterson]

I came across a new job last week in a market in which I haven't been before, and I'd like to double check the logic of my pricing against some of you with more experience.

Details:
- Industrial part where I marked through their oxide coating in two seperate and discrete areas. This meant that I made a jig, engraved one area (lets call it the "face"), flipped the part and put it in another area of the jig so that I could mark the "side". Only 1 jig was required since all the parts were all the same geometry (except the side/face as mentioned).

- Engraving area was roughly .25" x .5" each

- Laser time took about 20 seconds for each (total of 40 seconds laser time per part).

- there were 8 parts in total and the corel set up involved involved changing one letter on each set of two parts ( 2 pieces with Rev. A, 2 pieces with Rev. B, etc.).

- This customer needs a local resource (me!) and they say other business will be coming my way.

They paid what I charged them, and did not seem surprised. If I follow the $100/hr laser time suggestion, I would have billed $8.88 plus a set up fee. Obviously, I didn't, but I don't know if I left money on the table.

How would you have priced this?

[Joe Pelonio]

For something that's such a small quantity and runs so quickly I'll charge my 1/2 hour minimum. So at $100/hour I would have charged $50. I have learned over the years that with the cost of the laser, parts and maintenance, any custom job for the manufacturing and prototyping industries is worth that much.

That obviously won't work to compete for retail jobs such as name badges and desk name plates.

[Chip Peterson]

Thanks Joe. Would you also have charged a set up fee to do the graphics (very minor) and making the jig, or simply the 1/2 hour fee?

[Joe Pelonio]

I would charge the same per hour for laser time, and "other" which includes setup, jig making or other artwork for this kind of job, but itemize them separately on the invoice. So if the setup/jig took 18 minutes and the laser took 6 minutes it would be 1/2 hour + 1/2 hour.