How to Estimate the Cost of Labeling

In this article, an experienced factory manager shares his practical tips for calculating laser engraving costs, covering factors such as material type, pattern complexity, and processing time, to help you quickly grasp the techniques for laser engraving pricing and reduce production costs.

Why is it necessary to quickly estimate the cost of labeling?

Everyone who works in a factory knows that when a customer places an order, the first thing he asks is "How much do you charge for this marking process?" If the price is too high or too low, or if it takes too long to quote the price, the customer will just turn around and go to someone else.The experience of the old masters tells us that there are three core elements to rapid estimation: looking at the materials, calculating the time needed, and estimating the amount of waste.Only after understanding these factors can a trader make a bid with some confidence.

The three major factors affecting the cost of a label.

The type of material determines the base cost.

The difficulty of marking different materials can vary greatly. For example, to mark stainless steel, you can use a low-power laser. But if you want to mark glass or ceramics, you need to use a higher-precision machine, which consumes more power and takes longer.The fee for most metals is NT $ 0.50-2.00 per piece, while non-metallic materials are twice as much.

The complexity of the pattern affects the time required for processing.

Is the logo a simple text or a three-dimensional image with a gradient effect? This is particularly important. The experienced workers have a rule of thumb: They enlarge the image to the actual size, and count the number of intersection points of the lines.If there are more than 20 cross points, the processing time will be at least 30 % longer.

The larger the production run, the more the fixed costs are spread.

Don't be too quick to calculate the price on a per-unit basis. Remember to include the fixed costs of setting up the machines and adjusting the blueprints.For instance, the price per unit for making 500 items is more than half the price for making 50 items.You have to make it clear to customers that you have to sell a lot to get a discount.

The old master's quick price formula.

Ask, look, and calculate.

First they ask the customer what kind of material and how much they want. Then they look at the blueprint to see if it requires any special processes. Finally, they pull out a cell phone to do the math: base price of material × quantity + labor cost × estimated time + 10 % of the cost for contingency.If you add these three figures together, you won't be far off.

Handling common problems.

When customers say that other places offer lower prices, you can break down the costs: the equipment uses an imported laser head with a high degree of precision that won't damage the material; the consumables are changed weekly to ensure results.Many of the old-timers would also prepare samples of different quality and compare them side by side, so customers could immediately see the difference in price.

The following practical tips will help you save money and reduce stress.

Prepare standard price lists for different materials in advance, so you can look them up and quote a price when an urgent order comes in. Sign a step-price agreement with long-term customers, so that if the monthly cumulative order exceeds 500 pieces, the price is automatically discounted. Keep a regular record of the actual power consumption of different machines, and you may find that the electricity is cheaper when you work overtime on weekends.