Pricing for products made with X-Carve

X-Carve Tips and Tricks
1

I’m just getting started and am wondering how to determine pricing for products created on my X-Carve Pro. I was going to start with a local pub and make custom Flight boards. 3 1/2" x 14 1/2" with a handle and 4 holes for the glasses. Using inexpensive wood, how much should I charge for something like this? I really don’t know how to come up with rates. Thanks

2

Most of the time people will have something similar to this:

  1. Material Cost (if the customer is not supplying material) - The cost of the material with any markup you are going to place on it.
  2. Design Rate - The hourly rate you charge for the design work it takes to create the work.
  3. Shop Rate - The hourly rate for yourself to be actively setting up, tearing down, or finishing the material.
  4. Machine Rate - The hourly rate at which you charge for the machine to be actively working on a project.

Of course, everyone has their method, but this is about as simple as it gets. You can just provide the customer with an NTE Cost (not to exceed cost) or a flat rate.

It is really up to you…

{:0)

Brandon R. Parker

2 Likes
3

How would they be customized?

What wood?

These matter. But using cheap pine (I wouldn’t recommend), you could make 5 or 6 per 8’-1x4 board, assuming some unusable parts. If that’s purchased in bulk, you’re looking at less than $1 in material per piece. Using slightly better wood, the price jumps unless you have a supply. You can buy plain, finished flight boards in bulk for $4 a piece. Can you beat that? If it’s the customization you’re selling, is it cheaper to buy from a supplier and customize? That will all factor in.

4

Just starting out, there will be little/no data to help determine a fair price. As much as I dislike the model, charging double the material cost will get the price into a reasonable box. You may or may not lose money, but in the beginning and without data, you can only guess.

Costs to consider as you progress:

  • Material (will often change with the project unless you do everything with the same material.)
  • Rent or mortgage, utilities, etc.
  • Labor (what you pay yourself for all the time you put into a project)
  • Overhead (any cost not listed)
  • Consumables (bits, double sided tape, and anything else that needs to be replaced on an ongoing basis)
  • Etc.

If you are in the U.S., review an IRS Schedule C to get a better idea of what categories costs fall under.