I did find this frustrating because so many need guidance. A suggested starting point is needed to help one become successful and not give away their future. Pricing is quite confusing because the work we do is so diverse. I can tell you from experience these numbers are not only feasible but I know some laser shops are making much more than this with their products. When you add in the hour cut time, it is not feasible for wholesale, but still profitable at retail.

With your laser investment, could you make less and still find this industry viable to buy more lasers? I would if I could keep my laser busy running products all the time.

Let me walk you through a possible sale. A customer comes in and wants to buy a laser-engraved pen. You have many styles to pick from, such as different woods and stains, and also fonts that can be used. It is not unusual for you to spend conservatively 30 to 45 minutes with a customer before they decide on the ultimate pen gift they want to buy. I believe this transaction in some cases can last more than an hour.

You see it as building customer relations so true and important , but it is time spent on one order.

Now you take this pen into the back room, and your laser takes 15 seconds to engrave it. What do you charge? My answer would be as much as the market will bear or the customer is willing to pay. Not much help, am I? For this scenario, I would probably try to fit some if not all of the engraved cost into the pen price.

Where The Money Is . . . In Laser Engraving

Pricing gets even more difficult if the customer wants multiple lines of text or you need to use your rotary fixture. Setup takes time as well. Do you charge for that?

Some do, but in this case you have to compete with other companies. This helps me bring up my next point.

The more time your laser is running, the better your chances for success. Like that was news to you. I am a big advocate for producing your own product line.

I want your laser running eight hours a day or more.

Actually I try to accomplish this at wholesale pricing. It is only 10 times material cost, but 1, percent sounds like so much more. Absolutely, but I believe this is the bare minimum if you plan to wholesale. So, many expenses have to be absorbed before your net profit is realized. I could debunk my theory with certain products, but we are trying to set a general pricing target.

If you are cutting this on a watt laser, it will take you about an hour to cut with all the details. But when you add in the hour cut time, this makes the product not feasible for wholesale, but still profitable at retail. Can we come up with faster ways to produce the product?

How about buying supplies in bulk, for less? You should always look for ways to improve a product line, and that includes making it more desirable. This laser industry is so exciting with all the possibilities. The truth is we have barely scratched the surface at what new ideas are created every day using a laser.

I see it all the time. We have customers who buy their wood in bulk to cut our ornament patterns. What if you printed a detailed picture on a sheet of paper, cut it with your laser, and made a product with it? A printed piece of paper costs how much? Do you think he has a winning product? This company just got an order for 10, units from a well-known corporation. He started in this business last year and has already ordered his second laser. What can you create with your laser?

When he told me about this order, it gave me another idea. I know you can buy a special matte board. Could you cut their corporate logo with your laser and dip it into some scented oils to make a car freshener for that large company? What about a similar product for a fundraiser or a car club? Once you get an order, what else can you make them or who else can you make it for? One sale can snowball into many new ideas and opportunities. The point is that inexpensive substrates can be turned into high-value products that sell for many times material costs.

Some pricing should be determined by what it will sell for what the market will pay. Can you still grow your business at this value for your product?

Is this price still profitable to manufacture? Can you reengineer the design or possibly look at different substrates to make the product more viable? I am just trying to show how the market sometimes dictates our pricing, and we have to adjust to this. Just make sure you are not giving away your profit to make a sale.

How to Choose the Best Laser Cutter Machine

You will always have that haggler in every crowd. If your price is good, stand your ground. Pricing is not exact science. There are general guidelines some of us follow, but we all have exceptions to our rules. Neither I nor anyone else can give you set pricing.

We can suggest, but we have to be careful of anti-trust laws that prohibit price fixing. Plus, you have an overhead cost that varies among companies. Some say figure out your breakeven point and try to exceed that every week. Your breakeven point can be figured by calculating your monthly overhead, such as electricity which will vary , phone, rent, heat, etc. I believe this only tells you how much volume you need to survive each week or month, but not how much you should be charging for each individual item.

If you are running similar products as other shops, then you should know their pricing.

My cheap Chinese laser experience

I once visited a shop that thought it was losing sales because their prices were too high. So I literally picked up the phone looked through the yellow pages and called four of their competitors to see what their prices were on a particular item. What I found out was her prices were less than all four, but she was still not getting the orders she quoted. So we contacted one of her customers to see what they ended up buying. We found out the customer was not comparing apples to apples.

The quote was for a higher-end product compared to what the customer ended up buying. I believe you have to educate many customers with quality over price. I would not sell a product unless I was proud to say it came from my shop. That decision is up to you, but the customer should be educated on the difference. This is why I would like to see you develop your own product line. Pricing is what the market will bear. It has no boundaries on profit. How will that exceed my breakeven point?

Will I have enough profit left over to make mama smile? I could show you thousands of products that can attain this level of pricing, but this article is not about product designing.

You can check out my other articles on product creation, where the market is, or many other valuable topics. All you have to do is start reading. I have two topics for The NBM Show seminar season for No source outside this country can compete with the unique details you can add to a product.

One great idea can make your business a success; I will share several proven ideas that have worked well for many. Much of this class will be a demonstration on how to vector-draw a logo. If you bring a laptop, you can follow along with a download from the instructor. With practice comes perfection. Remember that one good idea could put you on the road to success. I hope you will attend! Please go to www. I look forward to meeting you! Skip to main content. Home News Features Education Products Magazine Spotlights Trade Shows.

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