Part price Q (actually, Q on pierce costs) with Colt model

[motoguy]

I'm getting ready to invoice a customer on a part. I've been using the Plasma Estimator program, based on Jim Colt's pricing principles (material cost per inch X2 for 1) material, 2) cut inch and...3?). My question is on pierce costs. Does the Colt method use the same "selling price per square inch" as a pierce cost, or is it a separate price?

I've attached the part. It's 11 ga material, with 70 pierces, 6.20" x 4.05", 119.89" cut length, .25 waste added. My material selling cost is .02778 per sq inch. Using the (as loaded) cost of $0.15/pierce, the part costs $14.60 each. If I change the pierce cost to $0.03 each, the part changes to $6.20 each. My first reaction was "$15 seems kind of high", but $6.20 seems a low given the time to cut it vs other parts I've sold. The letters are small (near kerf width in areas), and it takes a while to cut. It's kind of a PITA, lol Still...I'm wanting to be consistent and fair. Most of my other projects have had small #'s of pierces, so this hasn't come to my attention. This one has a high "pierce density", so it came to my attention.

I've been trying to find Jim's posts to clarify, but I haven't found them yet. Thoughts?

name plate.JPG

[mdwalker]

Based on your information I would be at $25.71 for 1-5 pieces and $19.71 for 20+ pieces.

[motoguy]

Well, that makes me feel better. Lol. Any other input?

[KIDTech]

Yeah I would be in that $25 range as well for cutting. I have not ran it through my cost calculator but I have been doing this long enough to give really close estimates for standard signs like this when people ask. Do you have anything added in there for your time in CAD to create the part? I know a lot of people may not charge for that but I do. Now if they come back for another I would be in that $15 range since all I have to do is load the cut file and go.

[motoguy]

Yeah I would be in that $25 range as well for cutting. I have not ran it through my cost calculator but I have been doing this long enough to give really close estimates for standard signs like this when people ask. Do you have anything added in there for your time in CAD to create the part? I know a lot of people may not charge for that but I do. Now if they come back for another I would be in that $15 range since all I have to do is load the cut file and go.

He had a sign shop create the file. I had to modify a couple of spots on the #'s 4, 5, and 7, as the kerf width was larger than the design. He also added a logo to an existing part, that file was also supplied. I had to mirror the part, as there are going to be left/right parts, and I don't think he understood the "good side/bad side" of a plasma cut part. I charged $30 (1/2 hour min for those changes).

FYI, I charged him the $14.xx amount when I delivered them today. He seemed fine with it.

[KIDTech]

At the end of the day if you are ok with the money made that's progress for you. I have personally not dealt with that situation having help creating the .dxf, just don't hurt yourself. You will find with this forum everyone wants us all to make money and not get hurt. Anytime you have a cut you are interested in finding out what I would cut it out for ask, you'll get a flood of info typically because it only takes one "company" making parts for next to nothing to hurt the industry. Words to the wise, the custom market never made anyone rich except for rich in life so love what you do. I make a lot more off the 1000 part orders than the one off.

[Shane Warnick]

To answer your original question, I charge pierces the same as a cut inch, if it's $0.10 per cut inch, it's $0.10 per pierce, etc. Makes it easy, and profitable. Also accounts for increased consumable wear / decreased inches of cut per set of consumables on thicker material vs thinner stuff.

Fwiw, I would be at $10.25 per part for these.

Shane