Tim,
By the time you figure in the real costs:
So the $70/hour is the gross intake minus the cost of the actual cup?
Then subtract machine purchase/maintenance, utilities, shop space, Insurance say that adds $8, so you are at $62.00
the $70 was calculated for just time actually etching, how much time was spent talking with the client, looking at/for cups, purchasing cups, packaging, invoicing, processing payment, etc?
Lets say that was only 6 hours or $120 of your time, round that off to $4 against each "engraving hour" so we are down to about $58 per engraving hour.
Then after the profit of $58, Federal, state/local income taxes, 15% self employment taxes, business property tax, accounting all eats up OVER 50% of the profit, so your take home is less than $29.00
As a business owner I'm not getting out of bed for that
Nick