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How to price laser-cut and engraved items

With a laser, machine time is a real cost. The machine has a purchase price, upkeep, and only so many hours a day. Price both your hands-on time and the laser's run time.

1. Material per item

Divide the cost of a sheet (plywood, acrylic, leatherette, slate blanks) by the number of items you nest onto it, after kerf and spacing. Add masking tape, finish or paint, and any hardware or assembly parts. Count failed cuts and sheets that warp.

2. Machine time

Your software usually estimates job time. Give the laser an hourly rate that covers its cost spread over its expected working life, plus electricity, tube or module replacement, lenses, air assist and exhaust. Multiply that rate by the run time per item.

3. Hands-on labor

File prep, loading and focusing, weeding, removing masking, sanding char, assembly and packing. Personalization means a new file for each order, so charge for that time.

4. Overhead and safety

Ventilation, fire safety, and replacement parts. Don't cut materials your machine maker says are unsafe (some plastics release harmful fumes). Only sell designs you made or have a commercial license for, since many free files are for personal use only.

Platform and payment fees

Marketplaces usually take a percentage of each sale plus fixed per-order or per-listing charges, and payment processing is often separate. Fee schedules change, so read your platform's current fee page rather than trusting a number you saw once. Remember that fees are charged on the price the customer pays, so they grow as your price grows. Calculate them on your final price, not on your cost.

Choosing a markup

Once you know your true cost (materials + labor + overhead), multiply it to get a price. A common maker rule of thumb is wholesale at about 2× true cost and retail at about 2× wholesale, but that is a starting point, not a law. Check the result against what comparable products actually sell for, then decide whether your quality, story or speed justifies sitting above or below that range. If the price you need is far above what buyers pay, the fix is usually cost or time, not a smaller margin.

Worked example

Notice that the profit line comes after you've paid yourself for your time. That's the number that tells you whether this product is a business or a hobby.

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