HOW DO I CALCULATE THE RUNNING COST OF MY MACHINE?

[renatoh]

Hello folks,

After couple days playing with the set up of my new Buddy48 and running some test files, I really think it's time to produce something to sell.
The question is:
How much it would cost me?
While I was in training in the Shopbot facility, someone told me that the price to run his machine was $ 1 dollar per minute.
Is this correct??
-The bits costs are included in this price as well?
- And what about the power to run the machine?
- The time to work on the software?
- My profits?
My idea is to make toys to sell, so I believe it couldn't be too expensive, otherwise the Chinese wouldn't give me any chance.
Any thought will be welcome.

Thank you,

[dlcw]

Welcome to the CNC world!

You need to figure out what your fixed expenses are to run your shop:
- insurance
- rent
- leases
- utilities (get recent electric/fuel bills)
- etc.

Figure out what you want to pay yourself for your skills.

From this you can get a rough hourly shop rate you need to start at.

As far as the Shopbot goes, the electrical requirements for my PRS Alpha 96x60 with 2.2hp spindle, compressor for SB air drill, four 220vac vacuum hold down motors, dedicated 110vac dust collector, figuring about 20HP total electric consumption, costs me about $4.53 a day, for 8 hours of continuous operation. Go here: http://www.csgnetwork.com/energycostcalc.html and plug in your SB electrical requirements to see how much the SB will add to your electric bill (also add in dust collection, air compressors, vacuum hold down motors, etc. that will have to be used just to support your SB).

A 3/8" compression bit ($27), for cutting plywood will last about 30 sheets. So about $1 per sheet.

A 1/8" ball nose carving bit ($25) will last a long time. I've used mine about 200 hours of 3D carving and it's still giving me good quality.

My 1/4" end mill ($25) has done about 150 hours of cutting/carving and still gives me excellent cuts. I've used it on plywood, softwoods and hardwoods.

My 1/4" boring drill bit has drilled about 3000 holes, in plywood, and is still as sharp as the day I chucked it into my air drill.

I charge software time at my shop hourly rate.

I charge any time I have loading/unloading the ShopBot, sanding/finishing/assembling/etc. at my regular shop hourly rate.

So using your base hourly rate as a start, add in the electric, and Shopbot purchase price amortization recovery costs, and you should have a good idea of what it will cost to make something.

Or you could inquire around in your area to see what other CNC owners charge for their machine time and use that as a base.

Good luck and have fun.

Don
www.diamondlakewoodworks.com (http://www.diamondlakewoodworks.com)

[myxpykalix]

$1. a minute might be what he charges but that can't be what it costs him. Unless he has a couple of very intelligent trained monkeys running it...and even then they work for peanuts!
(or is that banannas?)

[renatoh]

Thank y'll for your thoughts

I guess that I can have some idea of how much will cost me to run this machine. Even though it is not so easy to figure this out.

Hey Don,
by the way I was checking your site and what a beautiful work you have. Seems that you also have couple toys in your site, this is pretty much why I bought my Buddy for.

So far the biggest challenge for me is been to find a good dealer for the wooden wheels. Do you make the wheels for your toys by your self or you buy them from some one else?
Could you give me some hit on it?

Thank you

[coach]

I recall at shopbot training Chris suggested to charge at least $1.00 per minute machine time.

[renatoh]

Hey David

Was you there?
Does it look right for you?
Would my profit be inclueded at this value?

[coach]

when I cut 3D for a client he supplies the file and the material. I charge the 1.00 per minute.
It has been working for both of us for several months.
It works too because while the bot is cutting a 2 hour file I am assembling cabinets and tops. Although sometimes I kick back and put my feet up. shhhh
renato, I went to the class in Durham about 2 years ago.
David

[khalid]

1.00 per Minute.. and when you see the job is small then reduce the cutting speed in CAM..extend it to 8 Hours or so ;)

[cowboy1296]

These might be interesting for a few. I contacted my electrical company and got my kilowatt hours for the years 2008 and 2009, I got my shopbot buddy in 2010 and the dust collector in early 2012. This is only a hobby for me and it appears that my electrical bill went up about 34%.

YEAR KILO WATT USED

2008 8310

2009 8882

2012 12996

2013 13562

[scottp55]

Wooden Wheel supplier(and lots of other stuff). Nice People Prompt good quality.http://www.caseyswood.com/shoppingcart/zen-cart/index.php?main_page=index&cPath=220&zenid=5jhja0lsbnib6a49o5e1iamsu7

[MogulTx]

Renato,
I HOPE you had an approximate idea when you bought the machine. The value of $1 per minute is a good approximation. It should apply to most everything that you do- ( planning, working, cleaning up). You may lose a few bits when you start out- but they will quickly become a less important expense.

And you also need to think about the expense of your machine and costing it into the business...

What you need to do is to look at the toys you want to make and determine what you think they will sell for,a nd figure about 1/3 of that will be labor, 1/3 for expenses of materials and 1/3 for profit... ( ALL ROUGH VALUES!!!)

Use this, and then look at the expense structure you determine by adding up your expenses for raw materials and see if it looks about 1/3. Then figure out how you can make and assemble your toys for 1/3 or less... and then market them ( part of the labor expense!) and see if you can make money doing it. If not DO NOT QUIT. ALTER YOUR PLAN and your price and your market and your ideas until you make it work!!!