Mark up on product

[genek]

I was figuring the mark up for a shop bot desk top with one of my patterns today. The product was the oven rack pull being cut out of a 2" x 6" by 12" inch cheery board.. Going by what I pay for the cheery which is $5.15 per board foot for 8/4 (eight quarter)
was 675% mark up. I would have gotten 10 oven rack pulls out of that one piece of wood. Each oven rack pull would wholesale for $3.50 each, when I do shows they would have sold for $7.00 for 1,350% mark up... how many items do you have for sale that gets that percentage of mark up...most of my patterns hit between 500% to 1,000% mark up.

This is a good mark up for any item.

[scottp55]

Eugene, Are you profiling 8/4 on a desktop now? What are you using for a bit? router or spindle? Did you have to mod your table? No competition at all, just seeing how the desktop might work on my hard maple cubes. Thanks Scott

[genek]

eugene, are you profiling 8/4 on a desktop now? What are you using for a bit? Router or spindle? Did you have to mod your table? No competition at all, just seeing how the desktop might work on my hard maple cubes. Thanks scott

I do not have a desk top, I have a buddy, I am designing patterns for sale that can be used on all shop bots. Was told that a desk top could cut 2 inch thick material.. Which actually 2 inch when planned eds up being `1.5 if it is planned to standard sizes.. Ask TJ OR SOME ONE with shop bot... THey can answer these questions.

All of my designs are being set up so that all you have to do is load the wood, open the file to match your table and run the program.. The patterns that I am offering to sale; I am trying my best to make it plug and play... I am trying to produce a good product, that tells you how to do everything step by step. And where to get any items that may be needed like dowel rods and brass pin's etc...

What a machine will cut on most machine will depend on the router, the speed, feed rate and type of bit.. I am not an expert on the machines I know what my machine will cut and what I have been told..

Hard maple should cut like most woods. You may need to slow the feed rate down.. But I cut rock maple, birds eye maple and big leaf maple burls with a 1/4 inch bit all the time
again ask TJ OR SOME ONE ELSE at shop bot this question.


Most of my patterns use the following bits, 1/8 two flute to cut 1/4 material. 1/4 inch bit down spiral bit to cut 1 (3/4) and 1/2 material, and 1/2" down spiral for the two inch material.

[scottp55]

Eugene, That's what I am trying to do is a plug-and-play,glad it is doable with .25". How does the birds eye come out on the buddy, I bought half a kiln load back and besides the 600 b.f. Huston furniture cherry-picked when I was strapped for cash once it still sitting on my garage rafters.I talked to TJ for a few minutes Sat. AM while he was setting up before the "herd" arrived,but it hadn't dawned on me to cut my own blocks at the time. I was mainly concerned with the spindle doing 1/8" shallow holes that morning and he was rushing around. Besides he said he takes the list of basic training attendee's and blacklists us for a week so he doesn't have to answer question that we can figure out for ourselves. Thanks Eugene, Scott

[genek]

eugene, that's what i am trying to do is a plug-and-play,glad it is doable with .25". How does the birds eye come out on the buddy, i bought half a kiln load back and besides the 600 b.f. Huston furniture cherry-picked when i was strapped for cash once it still sitting on my garage rafters.i talked to tj for a few minutes sat. Am while he was setting up before the "herd" arrived,but it hadn't dawned on me to cut my own blocks at the time. I was mainly concerned with the spindle doing 1/8" shallow holes that morning and he was rushing around. Besides he said he takes the list of basic training attendee's and blacklists us for a week so he doesn't have to answer question that we can figure out for ourselves. Thanks eugene, scott

scott i e-mailed tj and asked him to address your question.. Tj is very good. Not sure what you are doing with the blocks. But if you have any problems with designing it in aspire, let me know will design it in aspire for you for free..

[genek]

Eugene, That's what I am trying to do is a plug-and-play,glad it is doable with .25". How does the birds eye come out on the buddy, I bought half a kiln load back and besides the 600 b.f. Huston furniture cherry-picked when I was strapped for cash once it still sitting on my garage rafters.I talked to TJ for a few minutes Sat. AM while he was setting up before the "herd" arrived,but it hadn't dawned on me to cut my own blocks at the time. I was mainly concerned with the spindle doing 1/8" shallow holes that morning and he was rushing around. Besides he said he takes the list of basic training attendee's and blacklists us for a week so he doesn't have to answer question that we can figure out for ourselves. Thanks Eugene, Scott
forgot to address the birds eye, i have very little tear out.. high speed and a little slower feed rate.. works for my shop bot on the birds eye.. even at normal feed and speed i see little problems.. just do not like the sound of the bit at normal feed so i slowed it down some. bit makes louder noise as it hits some of the birds eye part of the wood.
so i slowed it down to get rid of that noise and deflection.

[scottp55]

Eugene, Thanks for the help and it's nice to know about the birds eye, I'll have to build another lumber rack to get that stuff off the rafters(there goes another wall). On the blocks, I'm engraving all six sides with font,braille and sign language plus a trick to grab some autism spectrum kids attention. thanks Scott

[genek]

eugene, thanks for the help and it's nice to know about the birds eye, i'll have to build another lumber rack to get that stuff off the rafters(there goes another wall). On the blocks, i'm engraving all six sides with font,braille and sign language plus a trick to grab some autism spectrum kids attention. Thanks scott

yesterday tj did a cut with one of the patterns that is for sale.
To demo a desk top.. I think it went good. Getting ready to find out.. Think the demo was in 2 inch thick material

[gundog]

I did not see any numbers for time? Is the material delivered or do you spend time and fuel running for it? Do you have any tooling figured in eventually bits and machines where out. Do you have insurance costs? I figure in $100 an hour for profit and overhead. The material cost is usually the small part of the equation. Just some food for thought.

After the product is made I want to make a mark up if possible some times after doing all the figuring you have to look at the item and estimate what people will pay if after everything I don't make the $100 an hour + material I won't continue to make that product or I will raise the price to make a profit either they buy or they don't. I have a lot of other products so it is not that big a deal if it doesn't sell. I start out just making a few to see how it goes the first ones I don't make much on because of R&D but if it is popular it is game on.

Mike

[gundog]

I have some stuff that the material cost is $5 a unit the retail is $34.95 & wholesale is $25 but I have to buy $2500 worth of material at a time to get the extrusions these parts are made on a CNC milling machine. I can machine 10 of these parts in about 45 minutes but then they need to be taken to an anodize shop and picked up or I use a freight company. When I get the parts back to the shop they each get individually packed with a label to hang on a rack all these things take time and cost $$. Sometimes it is really hard to calculate the true costs until you have made a bunch of something.

Mike

[scottp55]

Thanks Eugene, Will try to find it and see how TJ did.Plan on calling him Monday. Thanks scott

[genek]

I have some stuff that the material cost is $5 a unit the retail is $34.95 & wholesale is $25 but I have to buy $2500 worth of material at a time to get the extrusions these parts are made on a CNC milling machine. I can machine 10 of these parts in about 45 minutes but then they need to be taken to an anodize shop and picked up or I use a freight company. When I get the parts back to the shop they each get individually packed with a label to hang on a rack all these things take time and cost $$. Sometimes it is really hard to calculate the true costs until you have made a bunch of something.

Mike
HERE IS THE FORMULA I USE. AND IN YOUR CASE WILL GET YOU OVER $100.00 AN HOUR
COST OF MATERIAL X TWO, OUT SIDE PARTS, OR LABOR TIMES 1.5 PLUS 20 %

YOUR COST FOR MATERIAL WAS $5.00 YOU GOT TEN IN 45 MINUTES. TEN X TEN = 100
minus you $5.00 leaves $95.00 lest say out side cost is $2.00 (since that is not stated.) $2.00 times 1.5 =3.00 (profit of $1.00 each so now you are back to 100.00 plus the 20% over head now you are making $120.00 an hour. over head in most small shops if you own the building is this $20.00 a day for electric and phone.
that allows for heating and cooling each month.
shipping and packaging is extra. the customers pay for shipping and handeling. that includes tape, boxes and time.