I run a shop on Etsy and told my partner the same thing. Everyone is in a race to the bottom, price-wise. Don't try to get there first. Instead, I price my items above everyone else and established myself as a premium product instead. If someone sells the same thing as me for $10 and my spreadsheet says it should be $35, I price it at $35. And people pay it because they know they're getting quality rather than someone who is rushing garbage out to try and find a profit.
@@globalrealtysolutionsllc4013 my shop is for 3d printing, so I built a spreadsheet that calculated all of my costs for each item based on material usage and increases that cost by 500%. It also estimates my time per item and adds my hourly rate for that time to the item. I haven't built it for laser work yet because I don't sell any laser work yet.
Love you,transparency ❣ You will Never know how much you ARE Valued. Cos every time this video is viewed comes a new level appreciation . BLESSINGS unto you. 🙏 May you continue to be a BLESSING
My advice. Give the customers a product that stuns them in the beauty, quality, and features. But give them a price that reflects the premium nature of the product. In other words, make the product a premium product but carry a price that reflects ITS WORTH and let the customer know they're getting something VALUABLE by the craftsmanship that went into its creation - which is not just the physical task of creating it, but also the mental tasks of design, materials, detail, etc. If you can convey to the customer that the item is VALUABLE then they'll pay the premium price because IT IS valuable because of all the thought and energy that went into the product.
Great video! I once had a mentor explain it this way. You need to be paid for all the time you work, not just the time it takes to make a product. So, you need to get paid for the time you spend doing sales, doing the books, etc. That needs to be calculated in to the price. You also need to remember the government is going to take 33% or more of your profit. Got to love taxes. :D
Matt, great video. This hits close to home. I run a powder coating shop and we run a 100w OMTech as a value added service for some extra income. Everyone wants something cheaper but this isn’t a charity and good will is great but it doesn’t pay my bills. My shop is on an airport and we started selling acrylic engraved runway maps. I always feel I’m charging too much until I figure out the time it takes to actually purchase the materials, graphic manipulation, laser set up, then engrave it. Then it feels like it isn’t enough! Once again, great video!
Well said Matt, I've been doing cnc work here in Ontario Canada now for almost 2 years. Just started with a co2 laser. Pricing is difficult for sure but you can't short yourself. Enjoying your videos... keep it up man!
Thats about the honest talk i have heard. Everyone wants something cheap and they will find it from China. But quality and craftsmanship dont come from overseas and its not cheap. There is also those who will pay for something if its not cheap. No one ow buying a new vehicle off the show lot for $5k. You would be like something has to be wrong with that one. Same goes for craft work. Ive sold many things. And when i charged for things i sold less but made more. Ive done the other way around as well. And lost my business several times. If you dont charge there is no point in making it. Thanks for the video. I subscribed because of it. Hope to see more
I live in the Philippines and have no competition on my island. I make 50%...some items I make 80%. But I know I am in a unique situation. Great video !
I've got a laser, but it's not my business (yet...long story...) but this definitely helped me. I've been thinking about expanding from "hobby stuff" into making products, but didn't know where to start thinking price-wise. Thank you for your brutal honesty!
I bought a 90W Laser a couple years ago, then never got to set it up. Now everything has turned to poo-poo and I gotta sell it all. Life REALLY sucks right now, not only because I couldn't even get my LASER busines started, but OUR A/C HAS BEEN OUT SINCE LAST SEPTEMBER 2021 !!! Gotta love 109 deg F with no A/C !
I know you are right about the pricing. I want to make sure I am pricing appropriately so I can have money for the other expenses. I am working on it but it’s not easy and yes you want to keep the quality. So many decisions!
Thank you for all your advice I enjoy your videos!!! Also my family is from the Midwest, so your voice reminds me of something my family would tell me!!!
Great advise. Love your honest talk about what you did and what you should have done. To make it work you must work hard and work smart. Looking forward to more videos.
loved your video, I make ceramics from start to finish, do sublimation , and just started using a lazer. I suck at pricing since i have been doing ceramics for a while I figured out what you are saying when I realized that i was constantly busting my tail and never making much to show for it. So I have to agree with you 100 percent. It is also very hard to up your prices once you have that customer base that have dealt with you for a long time and you make price jumps.
Thanks Matt. I’m deciding if I want to get into this business. I’ll be retiring soon, and am looking for something to keep me off the streets. P.S. where can I find your bee videos?
I just started doing mugs and the base of pricing i heard is the 3x pricing or whatever you call it. If you spent 2 on the material and the making you charge 6 if you spent 6 you charge about 18 and so on. I charge family members about 15% less than other customers. i still need to work on my prices tho :D After a while i am sure i will charge about the same price for family.. xD My sister is charging the same for nails so why wouldn't I? There are people who are making sublimation mugs for $4.30 (in my currency and we are a poor country so keep that in mind.) i do it for $5.40 and even $6.70, i try to make better quality and better designs than these other people and i do 2sided mugs that's why i have $6.70 mug. .
I was told to add the cost of making 1 item ( candle or sign ect…. ) and Triple that plus add an hourly rate and don’t include shipping ! How do you price a ONE OF item ? That’s what I do all custom pieces like signs and logos and leather bracelets and necklaces and earrings , how would you price that ?
Question for anyone who might know. I'm looking to start up a small local engraving business with my ortur laser master 2 pro and am interested in making it a legally registered business so I can get a business checking and credit account, because it requires a registered business name and an EIN. So my question is about taxes. I set my prices based on how much whatever I'm engraving costs plus whatever think is reasonable markup (usually at least 3x the cost of the object). When figuring out how to pay taxes, do I say my income is what I charged my customer, cost of item plus what I charge for the engraving itself, or do I not count the cost of materials that I'm not making a profit on? Basically only count the difference with what I charge for the engraving (including shipping materials)? Also with card readers since there is always a fee, do I count the income before or after the fee when it clears? Tried finding some info online but nothing answers my exact questions and can be pretty confusing. So any help would be appreciated.
We put it in the box that we will ship it in and then ship it to the most expensive spot in the lower 48. And that is out east. I don’t know the zip code off hand.
They make more than 40%? In my country, if you want to sell your products in a store, you need to be ready. As a small business you can't work with established stores. And those who will take/sell your products, they will add from 100 to 300% on your price. And they will not buy anything from you. They will only pay you if a customer buy something. 😑
@@laserengravingwithmatt One always affects the other inversely. The only way to increase quantity thus higher pay (w/out raising prices and reducing quality) is to higher someone. I didn't hear about that so that's probably why you raised prices which caused the fear of losing customers but it gave you more time to increase quality. You learned this through experience but I learned that and more in a business management book. Try getting one of those. You'll learn a lot more.
why is your only option for CAptions is korean?? No disrespect But I cant listen to loud late at night which is the only time I can watch these vids and I need caption AB CAD
I run a shop on Etsy and told my partner the same thing. Everyone is in a race to the bottom, price-wise. Don't try to get there first. Instead, I price my items above everyone else and established myself as a premium product instead. If someone sells the same thing as me for $10 and my spreadsheet says it should be $35, I price it at $35. And people pay it because they know they're getting quality rather than someone who is rushing garbage out to try and find a profit.
Absolutely!
How did you establish your price sheet
@@globalrealtysolutionsllc4013 my shop is for 3d printing, so I built a spreadsheet that calculated all of my costs for each item based on material usage and increases that cost by 500%. It also estimates my time per item and adds my hourly rate for that time to the item. I haven't built it for laser work yet because I don't sell any laser work yet.
I really enjoy your videos, you're down to earth and not afraid to share your "real" experiences
Thanks
Love you,transparency ❣ You will Never know how much you ARE Valued. Cos every time this video is viewed comes a new level appreciation . BLESSINGS unto you.
🙏 May you continue to be a BLESSING
Thanks for the kind words.
My advice. Give the customers a product that stuns them in the beauty, quality, and features. But give them a price that reflects the premium nature of the product. In other words, make the product a premium product but carry a price that reflects ITS WORTH and let the customer know they're getting something VALUABLE by the craftsmanship that went into its creation - which is not just the physical task of creating it, but also the mental tasks of design, materials, detail, etc.
If you can convey to the customer that the item is VALUABLE then they'll pay the premium price because IT IS valuable because of all the thought and energy that went into the product.
Great video! I once had a mentor explain it this way. You need to be paid for all the time you work, not just the time it takes to make a product. So, you need to get paid for the time you spend doing sales, doing the books, etc. That needs to be calculated in to the price.
You also need to remember the government is going to take 33% or more of your profit. Got to love taxes. :D
Matt, great video. This hits close to home. I run a powder coating shop and we run a 100w OMTech as a value added service for some extra income. Everyone wants something cheaper but this isn’t a charity and good will is great but it doesn’t pay my bills. My shop is on an airport and we started selling acrylic engraved runway maps. I always feel I’m charging too much until I figure out the time it takes to actually purchase the materials, graphic manipulation, laser set up, then engrave it. Then it feels like it isn’t enough! Once again, great video!
Thanks. I know what you mean. Definitely hard. Thanks for watching
Well said Matt, I've been doing cnc work here in Ontario Canada now for almost 2 years. Just started with a co2 laser. Pricing is difficult for sure but you can't short yourself. Enjoying your videos... keep it up man!
Thanks
Thats about the honest talk i have heard. Everyone wants something cheap and they will find it from China. But quality and craftsmanship dont come from overseas and its not cheap.
There is also those who will pay for something if its not cheap.
No one ow buying a new vehicle off the show lot for $5k. You would be like something has to be wrong with that one.
Same goes for craft work. Ive sold many things. And when i charged for things i sold less but made more.
Ive done the other way around as well. And lost my business several times.
If you dont charge there is no point in making it.
Thanks for the video. I subscribed because of it. Hope to see more
Thanks 😃
I live in the Philippines and have no competition on my island. I make 50%...some items I make 80%. But I know I am in a unique situation. Great video !
That’s awesome
I've got a laser, but it's not my business (yet...long story...) but this definitely helped me. I've been thinking about expanding from "hobby stuff" into making products, but didn't know where to start thinking price-wise. Thank you for your brutal honesty!
Thanks and thanks for watching.
“Don’t short suit yourself!” Ha! Sounds like a Euchre player is in da house! Nicely done Matt. Hard to find a good Euchre partner in Arkansas. 🤟🏼
😂 heck yeah. I bet it is.
I bought a 90W Laser a couple years ago, then never got to set it up. Now everything has turned to poo-poo and I gotta sell it all. Life REALLY sucks right now, not only because I couldn't even get my LASER busines started, but OUR A/C HAS BEEN OUT SINCE LAST SEPTEMBER 2021 !!! Gotta love 109 deg F with no A/C !
Just remember there’s only one way once you hit rock bottom. UP ⬆️
I know you are right about the pricing. I want to make sure I am pricing appropriately so I can have money for the other expenses. I am working on it but it’s not easy and yes you want to keep the quality. So many decisions!
Take your time you got it.
Hey mate, loved this honesty and thank you for your videos. Truly appreciate your tips, humour and reality checks
Thanks
Thank you for all your advice I enjoy your videos!!! Also my family is from the Midwest, so your voice reminds me of something my family would tell me!!!
Thanks 😂 that’s awesome
Great advise. Love your honest talk about what you did and what you should have done. To make it work you must work hard and work smart. Looking forward to more videos.
Thanks
You are so Dead Right! I'm in the same exact situation right now . Thanks for making this video. I hope you have a wonderful day.
Thanks and same to you.
“You should be getting raises every year. If you’re not- I’m sorry…”
I laughed out loud there lololol
😂
loved your video, I make ceramics from start to finish, do sublimation , and just started using a lazer. I suck at pricing since i have been doing ceramics for a while I figured out what you are saying when I realized that i was constantly busting my tail and never making much to show for it. So I have to agree with you 100 percent. It is also very hard to up your prices once you have that customer base that have dealt with you for a long time and you make price jumps.
Thanks. So worth it when you make the price jumps. Thanks for watching.
Every business is raising fees. Except for my check. Glad I started doing this! The only orders I want to hear are from customers! 😁
😃
Good info and I really like your video editing too. Shows attention to detail.
Thanks
You put out some solid content. Thank you for for the information from several of your videos.
Thanks
Matt I enjoy your videos
Thanks
Friends & family should understand this is a job for you & shouldn't expect discounts
Great Advice!!! 🎉
Thanks
Thanks Matt. I’m deciding if I want to get into this business. I’ll be retiring soon, and am looking for something to keep me off the streets. P.S. where can I find your bee videos?
You’re welcome. Very cool. Bee videos are on our channel Matt & Sara. ua-cam.com/channels/YXk3jeHY_DS_JvJt51RDeA.html
Enjoying your information
Thanks for sharing
Thanks
I just started doing mugs and the base of pricing i heard is the 3x pricing or whatever you call it. If you spent 2 on the material and the making you charge 6 if you spent 6 you charge about 18 and so on. I charge family members about 15% less than other customers. i still need to work on my prices tho :D After a while i am sure i will charge about the same price for family.. xD My sister is charging the same for nails so why wouldn't I? There are people who are making sublimation mugs for $4.30 (in my currency and we are a poor country so keep that in mind.) i do it for $5.40 and even $6.70, i try to make better quality and better designs than these other people and i do 2sided mugs that's why i have $6.70 mug. .
Wow I can’t even buy them for that price
I enjoy your vids! Thanks!!
Thanks
Mass effect! 😎
Hi Mat, when you add your percentage markup do you add it to the total cost? How do you account for the etsy costs in your pricing?
This video should help you ua-cam.com/video/OLBg3WvIdUo/v-deo.html
Very good
I was told to add the cost of making 1 item ( candle or sign ect…. ) and Triple that plus add an hourly rate and don’t include shipping ! How do you price a ONE OF item ? That’s what I do all custom pieces like signs and logos and leather bracelets and necklaces and earrings , how would you price that ?
I would have a set up fee. We started doing that and it made a world of a difference and then after that it’s just time and material.
@@laserengravingwithmatt flat rate or time ? What do you think about 3x the cost for pricing ?
Set up cost 10.00 plus TM. If I bid I still do 10.00 set up and go up as much as I need. 3 times is fine if you are making money
@@laserengravingwithmatt good to know ! Thanks
Cheers mate .
Cheers 🍻
Nowadays I am in search of laser cutter I need your guide line which one is better by the way I am very much interested to make it business.
That all depends on your budget
Question for anyone who might know. I'm looking to start up a small local engraving business with my ortur laser master 2 pro and am interested in making it a legally registered business so I can get a business checking and credit account, because it requires a registered business name and an EIN. So my question is about taxes. I set my prices based on how much whatever I'm engraving costs plus whatever think is reasonable markup (usually at least 3x the cost of the object). When figuring out how to pay taxes, do I say my income is what I charged my customer, cost of item plus what I charge for the engraving itself, or do I not count the cost of materials that I'm not making a profit on? Basically only count the difference with what I charge for the engraving (including shipping materials)? Also with card readers since there is always a fee, do I count the income before or after the fee when it clears? Tried finding some info online but nothing answers my exact questions and can be pretty confusing. So any help would be appreciated.
You go off of your gross for taxes. If I were you I would talk to a cpa it will help a ton because every state has different rules
Lots of things to think 'abote'. 😉
If I didn't have the VA for healthcare, I would be screwed.
how do you figure in the shipping cost. Do you per-weigh your products and measure so you know what to charge to ship?
We put it in the box that we will ship it in and then ship it to the most expensive spot in the lower 48. And that is out east. I don’t know the zip code off hand.
Hahahaha, you sounded like Mark Wahlberg when you were doing the whining 😂
😂 I will take it he is a good man.
What computer is needed to run the laser?
Anything that works really.
They make more than 40%? In my country, if you want to sell your products in a store, you need to be ready. As a small business you can't work with established stores. And those who will take/sell your products, they will add from 100 to 300% on your price. And they will not buy anything from you. They will only pay you if a customer buy something. 😑
Wow
Thats called Quality vs. Quantity.
Thanks
@@laserengravingwithmatt
One always affects the other inversely.
The only way to increase quantity thus higher pay (w/out raising prices and reducing quality) is to higher someone. I didn't hear about that so that's probably why you raised prices which caused the fear of losing customers but it gave you more time to increase quality.
You learned this through experience but I learned that and more in a business management book. Try getting one of those. You'll learn a lot more.
I see subtitles Korean, I do not see English. I am deaf guy. Can you add or fix it? Thank you.
I will
why is your only option for CAptions is korean?? No disrespect But I cant listen to loud late at night which is the only time I can watch these vids and I need caption AB CAD
I don’t know 🤷♂️. I can’t choose. On my end I can only flip a switch on or off.
first one is free ;)
What computer is needed
One that works is really all you need.
Charging an hourly rate doesn't sound right.
It all depends on the job. We lots of TM jobs and it pays the best if done right.
wow, that was a lot of rambling :( didn't really learn anything from this :(