Pricing rule of thumb?

Newbie here that is making some unique parts successfully.

Is there some rule of thumb that anyone uses to value the time cutting on the machine? Say a part takes 2 hours to cut… easy to know what raw material cost is, but harder to know how to justify the machine time on a cost basis of wear and tear and amortization.

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There was a bit of discussion on pricing at:

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The link that @WillAdams gave you is included in a great thread.

I like the thought here:

here is an approach that can establish a starting point…
Raw material added to your hourly rate multiplied by the number of hours, all multiplied by 2… 2 represents a profit that can be used to improve or replace equipment.
($100 wood + ($30 per hour x 2 hours)) x 2
(100+60)x2 = $320 before taxes
in your case ($5 bolts + ($30x2))x2 = $130 before taxes
Everyone is free to adapt their hourly rate or their profit coefficient… Or to make a “friendly price”

One thing to remember is what your market will bear. In the Big City, I might get 100.00, in the local market I might get 25.00

Good Luck

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Here’s a information you might like, Kevin talk’s about pricing near the end of the video.

Hope this helps. :smiley:

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Not a direct answer to your question, but here’s my 2-cents:

In my opinion the process is more important than your product when it comes to making money with a CNC. Selling a sign that takes 15 minutes to cut out of MDF for $20 means your machine is working at around $80/hour, whereas an 8 hour 3D carve (Which would require much more finishing work) would need to sell for $640 to make the same hourly rate. There are other factors at play in this opinion, but if you want to make money you need to use your CNC as a means of quick production rather than a precision tool. Save the precision for 1-off gifts that make you look like a Rockstar to family and friends! Also, people hate paying for craftsmanship because they don’t understand the work that goes into some of these projects.

Anyway, my point about price is that if you make many of the same thing the market will tell you how much it should cost. Put the sign up for $30 and nobody buys one: The price is too high. Put the sign up for $15 dollars and everyone wants one: The price is too low.