Pricing Help

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Quad
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Pricing Help

Post by Quad »

Hello,
I'm pricing some business name plaques for a company that wishes to place these on their fences they make for their customers. They are 6" x 10", 14 ga sheet. They are wanting 50 of these at the moment. Like most, starting out in this business establishing a good solid pricing scale can be difficult. What would you charge for these? It takes approximately 550 cut inches per, and 32 pierces per sign. Thanks for the help!
motoguy
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Re: Pricing Help

Post by motoguy »

Looks like I'd be $22.77 each (without any discounts) based on the numbers provided above. That would be off the table, dross removed, and that's it. Finishing/painting/etc would be extra. That price does not include computer time. Details of the job/customer would determine if I charge computer time or not. That's $1138.61 for the total job.
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Quad
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Re: Pricing Help

Post by Quad »

Im about $23- $24 a peice w/o bulk discount. Whats a typical bulk discount you offer?
Shane Warnick
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Re: Pricing Help

Post by Shane Warnick »

I would be at around $23 each, raw. Oh, and 50 isn't enough for me to give a discount, but IF it was a good customer, I would probably knock a $100 or so off that amount. It also depends on how much material is going to be left on the job. Once the job uses up more than about 80% of a sheet, and I am going to be left with a small drop that will be hard to use up and make profit (not to mention a PITA to keep up with) then the customer buys the entire sheet. I am usually not a real stickler on this on mild steel since it's not as expensive as AL and stainless, but on the those other two definitely.

The other factor is what secondary processes are going to be done after I am through with them. If they are going to powder, and will be sandblasted, then I will be more likely to give a little better price, since I can throw them in the acid, and have zero grinding time. A day in the acid and they are clean and ready to go, I can rinse them off with water and leave them on the wire bundle for delivery. Now, understand, they will flash rust, but again, if they are going for powder coat they will be sandblasted so it doesn't matter. If they want them with no rust and I have to grind them all, then it's $23 each, maybe $25 depends on the design.

Shane
urbnsr
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Re: Pricing Help

Post by urbnsr »

I must need to sharpen my pencil. It's not the amount of material, but the length of cuts that brings me into the $30's/ea
Quad
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Re: Pricing Help

Post by Quad »

Very good point! I never gave thought to not using a full sheet and having a small drop you cant do anything with. Thanks for the information!
motoguy
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Re: Pricing Help

Post by motoguy »

Shane Warnick wrote:It also depends on how much material is going to be left on the job. Once the job uses up more than about 80% of a sheet, and I am going to be left with a small drop that will be hard to use up and make profit (not to mention a PITA to keep up with) then the customer buys the entire sheet. I am usually not a real stickler on this on mild steel since it's not as expensive as AL and stainless, but on the those other two definitely.
I am learning about this, too. I'm finding that the more business I get, and the busier I am, the larger the drop needs to be for me to keep/store it. When I consider the shop hourly rate, and how long it takes to dig through drops looking to "maximize" my usage...I'm learning it doesn't make sense to keep "small" drops around.
Bulltear 6x12 w/ Proton Z axis & watertable
CommandCNC/Linux w/ Ohmic & HyT options
Hypertherm Powermax 85 w/ machine torch
Solidworks, Coreldraw X7, Inkscape, Sheetcam
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