Pricing Strategies

[Mark Bolton]

To add to what Rodger said, if you imagine that you had 100K cash money today, option 1 you buy a cnc and ancillary equipment, market, sell work, build, etc... OR you take that 100k and invest it...

At 8% annual compound, in 15 years your earn $217,000.00. So over the life of the 100k investment in the cnc youd hope to come out with that as a bare minimum (a net break even).

Making 15K a year cash in the bank from the cnc sounds easy but it needs to be 15k clear after you've paid yourself. Because youd have made the 217k sitting on your duff with the money in the bank lol.

[Rodger MacMunn]

Mark Bolton ... that's really bad advice .... IF I had $100k sitting in the bank, & I was sitting around doing absolutely nothing, I'd invest it in some fine single malt scotch whisky. 10 years later, I'd be completely broke ........ LOL
My oldest grandson went with me on an "install" a few years back when he was about 9. It was 85 miles from here, & we ate twice. He had pancakes & maple syrup TWICE! I said "you have a sweet tooth " ..... he replied "you have a scotch tooth". No respect LOL

[Mark Bolton]

he replied "you have a scotch tooth". No respect LOL

Kids.. they just dont get it lol.

[Adam Bullington]

Thanks for the added information guys. I really didn't mean to sound like I was just doing the little things at bare bones minimum, in my area i feel i'm charging what the market will bare but i guess that's the whole point of this thread to get insight from those who have done this for awhile to verify that i'm not the low baller. One because its not fair to other shops " which there aren't any that I know of " besides Marks shop and he is a good ways away from me" and two even though i have low overhead i am still in business, to stay in business and don't want to leave money on the table. But at the same time I don't wanna be greedy and price myself out of the market. Its a balancing act and then you throw in pancakes and scotch and who know what will happen lol.

[Jim Becker]

I hope a really good red wine is an acceptable substitute for the Scotch...