How do you price??

[kt467]

I just add a business ask me if I will cut individual letters in the Curlz font at 2, 3, 4, & 5 inch in various colors. They have plates, cups, bags, etc, that they monogram on the spot. I don't want to overcharge but I don't want to jip myself either.

Does anyone have a formula they use?

[dragonlord666]

first off congrats.

there are many ways to work out how to charge. basically I think it comes down to what YOU are happy charging and they are happy paying.

one way is the simple one, you take the cost of materials add 30% and that is what you charge

one way is materials add cost of equipment (overheads like the blades, mats, electricity) add 30%

another is materials add your time add 30%
now it gets "messy" as "your time" is a big variable.
some make this a set figure
some use the minimum wage - now in the UK this changes depending old you are but lets just take the bigger one £6.31 per hour,
this means for every hour or part hour you work on something you add £6.31 to the cost of materials then add 30%
some will do this but will work out how much it cost per, say half hour (£3.15), so if they work 1:30 on something they charge £9.46 (£6.31+£3.15)
it can get very confusing.
always err on the more expensive side as they will try to get a lower price, using a higher figure allows you to lower a little so they think they are getting a deal and you are still getting the money you deserve for the job.

hope that helps and gives you something to think about.

of course, some seem to just pluck a figure out the air, best not go there LOL

Gaz

[TheresaTT]

kt456, I have a vinyl calculator spreadsheet that I got from another site. Will try to upload it. It won't let me upload the file type. PM me your email and I will send it to you. According to it tho, I entered a sheet of vinyl 12 x 24 and it gave the price of $7. per sheet. It doesn't matter on the size of letter if you are cutting the whole sheet. There is a little figuring on your part as far as vinyl cost per sq. inch but once you get that down it is quite helpful. Another way would be width + height divided by 2 = 12 +24 = 36/2 = 18. Quite a difference I see so I would go with #1 option if you consider buying a sheet of vinyl around $3.00 (at Joann's) -not on sale. Whatever you are comfortable with. OR whatever the customer will pay. They will definitely make their money back on the items sold.
Hope this gives you some sort of idea and is not too confusing.