Pricing A Cnc Manufactured Picture Frame

[TheNigerian]

After a lot of research and preparations, I now have a product designed for cnc manufacturing.

But how do I determine the economic price to charge for it?

Can anyone help please?

[Rekd]

Cost to develop devided by projected number of sales plus cost per part for manufacture/packaging/markete/etc + markup should get you close. You'll have to take into account the amount of 'markup' the customers will tolerate, which is, ultimately, where you make your money.

[sdantonio]

In some forms of carpentry and cabinet making I have been told that a general rule of thumb is 10 times the materials cost

[Rekd]

Originally Posted by sdantonio In some forms of carpentry and cabinet making I have been told that a general rule of thumb is 10 times the materials cost

How would you justify that price if you're making something that takes 5 minutes vs something that takes 5 hours or even 5 days?

Seems like a pretty far-fetched method to me.

Don't get me wrong, you need to price in the material, but you cannot base your pricing on simply the material cost, unless you don't do anything to the material except pass it on to the consumer.

[ger21]

Labor cost + material cost + profit margin + shop overhead

[sdantonio]

Originally Posted by Rekd How would you justify that price if you're making something that takes 5 minutes vs something that takes 5 hours or even 5 days? Seems like a pretty far-fetched method to me. Don't get me wrong, you need to price in the material, but you cannot base your pricing on simply the material cost, unless you don't do anything to the material except pass it on to the consumer.

Quite true. Most of the people who use this are like roofers or framers who basically put up repeats of similar structures. It seems to work for them.

[Rekd]

Originally Posted by sdantonio Quite true. Most of the people who use this are like roofers or framers who basically put up repeats of similar structures. It seems to work for them.

OIC. That makes sense. I'm still in the mindset that every time I turn on a machine, it's a different part.

[ZipSnipe]

I would take what a product similar to yours cost and then compare to what yours cost to make and then see if it would be better to underprice or just a little more then what your competition prices.

[TheNigerian]

Guys, I thank you.