Price Check - Sanity Check

[Capstone]

So based on Xmas gifts I made last year, I'm starting to see some requests for similar custom work. Problem is that I'm spending a few hours designing with no solid commitment to buy and based on the same size of the other pieces, my prices are quickly climbing to above $100 each, which is probably more than most would spend. So, sanity check; am I in the right ballpark for this Hockey Piece at $115, and charging only 1 hour of design time (even though it's been more like 3), SIDEBAR: I figure these will become stock items I can personalize, so I'm discounting the times. The shot on the right is the finished look, the left portion is how I'm cutting it. I have already had one customer basically drop off the face of the earth when I quoted another piece HERE that I offered to duplicate for $80

PriceCheck_Hockey.JPG

Anyways, I appreciate the input.

[AnotherDano]

My prices are based on three levels;
$.05/sq inch
$.10/sq inch
$.15/sq inch
This is for the steel.
Same numbers per linear inch.
Pierces are usually not charged unless there are a lot of them, I.E the tree of life. Same three levels.

Powder coating; $10.0/sq foot (front & back) - or $5.00 per sq foot for each side. Add 50% for clear/trans coats.

Design time; This depends on the reuse-ability of the design. Pieces that are highly personalized lean to the upper end of the scale.
Pieces that I can sell as-is on the retail table are at the lower end of the scale.

I explain this to the customers and add that this is the basis of my pricing - until the price gets stupid.
A lot of the pieces we are asked to do might run up to well over a hundred bucks. If I wouldn't pay that much, I don't expect them to and I cut back to something more reasonable.

Call me 'tight', but I look at the number of small items that I can cut from the same piece of metal and shudder. When the price of a 42" Shamrock is $90.00 and I can get 20-25 twenty dollar pieces, I have to consider a lot of factors. Pricing will always be a bitch!

[wickedinhere]

Yep i hate doing large pieces because there is more money in smaller pieces. Most people wont spend over 40-50 bucks on a single piece. That being said when i reach a piece that is 24 inches my price's goes up just because its harder to handle.
I would charge 150-200 for that piece powder coated.

[Shane Warnick]

CAD time is $60 / hr for me, if it's something I can do in just a few minutes (under 10 and you are spending at least $50) I will throw it in, otherwise you get charged. The minimum I run the table for is 3.5 cents per inch, both material and cut. This is for 14g hr and thinner. 10g is more, as is 1/4 inch and so forth. I am in a pretty competitive market, so take that for what it's worth. LOTS of waterjets and a few lasers out here, and unfortunately for those guys they owe on their machinery, and are willing to cut just to make enough to make the bank note right now.

I tell people usually there will be a CAD fee, $25 or so to get rid of the tire kickers. Then a deposit is required to get started. The ones that are still talking to me at this point are customers, the rest want something for free, and I don't need any practice. I am also not in business for charity work.

I have a 5'x10' table, and I actually sell a LOT of large pieces, since there isn't a lot of people that can cut them without a lot of additional work, such as welding etc. All that adds up to more $ for something I can do with better quality and less $.

Without knowing how many inches of cut you have, I would say I would be around $60 to cut that BEFORE I welded it all back together, and that's without paint or finish of any kind, just cut and cleaned up.

As far as CAD time, that doesn't look real complicated to me unless you drew the hockey player from scratch the first time. First customer has to pay for that. As far as changing the name, I would save the file with a blank with no name, and customize as needed. That would be a 2 minute job to add or change a name. I would charge $5-$10 for that UNLESS they were buying it at that size, with powder coat etc. Then I wouldn't necessarily charge them a CAD fee, but there would be $5 in there somewhere. If you are new and are just learning, try to keep that in mind, you will get quicker and your CAD time should drop, maybe as much as by 50%. Sometimes I take on jobs I know could be done quicker with different equipment, but I will take the job knowing I can do it, just not as quick as another shop. I try to keep that in mind, if I am not busy I would rather take care of a customer and build my reputation and repeat business rather than stick a 3hr labor charge to someone when it would have been 45 min if I had the right tool.

Something to remember, it's not necessarily WHAT it COST you to be able to produce something, but what it cost you to be ABLE to make something. Not everyone can do that, and there is a reason for that. The initial outlay to get set up and running, as well as learning, is the barrier to entry.

Shane

[Capstone]

Thanks so much all of you for the excellent and helpful responses. I've already gotten push back from the customer on font and design elements for the example above and I'm already losing sleep over how to keep it within a reasonable budget and still make the sale with some actual profit (not counting the CAD time, which I know I'm already WAY over budget) I know I can definitely resell the design with different names so I'm already about four hours into the CAD work so hopefully I can build up a catalog of designs. I'm already thinking ahead as far as keeping the personal elements separate for the next customer.

[dustywill]

I'm already thinking ahead as far as keeping the personal elements separate for the next customer.

I do that a little differently than you appear to. My way is not better, just different and may be something you haven't thought of. I produce the original art in phases. For instance. In your example I would do similar to what you have done and draw the hockey player. and move that to the side. I would then generate the name and move that to the side. I would then make a copy of each of those pieces and "weld" them together in my design software (I use VCarve Pro and Corel Draw) If I don't like the weld I undo and fix the piece I didn't like before rewelding. If I need to modify the piece with lettering I always do that separate from the lettering and weld that as well. I will have a ton of designs around the outside of my finished design when I am through in different levels of completeness. If it is something I can resell to other customers I can then open, change the text and weld all the pieces together.

Next time same gig. No breaking apart design and relettering...

Keeping unfinished work around the edge gives me the ability o to go back many steps if I have really messed up a design without much trouble. I know this ambled, but maybe it makes sense.

[Capstone]

I do that too Dusty. I even separate certain elements in a design just because it saves materials and I tell the customer it's a "special 2 layer process" when in fact, like this design, the hockey stick, gobbles up a lot of material when left attached to the main figure if I cut it in one piece. I mislabeled the dimensions of the metal needed on the left, it's actually quite a bit less material needed than the dimensions of the final piece (which is what I actually charge) In the end, I was able to bake up a gallery for the customer to make a final decision.

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