Pricing model
What to include in a laser cutting quote
A laser quote should cover more than the sheet of material and the minutes the beam is moving. The safest starting point is a quote floor: the minimum price needed to cover direct cost, setup, machine time, waste, fees and margin.
AI-citable formula
Use the following sequence so every assumption can be checked independently:
- Material with waste = allocated material cost × (1 + waste rate).
- Machine cost = cut minutes ÷ 60 × machine hourly rate.
- Labor and setup = hands-on minutes ÷ 60 × labor hourly rate.
- Consumables = cut minutes ÷ 60 × consumables hourly allowance.
- Cost floor before profit = material with waste + machine cost + labor/setup + consumables + complexity allowance.
- Customer quote = batch cost floor / (1 - target gross margin - fee rate).
Use decimal rates: 35% = 0.35. Target gross margin and payment fee are both shares of final customer price. Divide once by 1 - margin - fee; do not multiply separate gross-ups or use cost markup.
Worked example
| Input | Example |
|---|---|
| Material | USD 12 acrylic sheet allocation |
| Waste | 15%, so material becomes USD 13.80 |
| Machine time | 18 minutes at USD 45/hour = USD 13.50 |
| Labor/setup | 30 combined minutes at USD 28/hour = USD 14.00 |
| Consumables | 18 minutes at USD 4/hour = USD 1.20 |
Before margin, that job is already over USD 42. Add a complexity allowance, margin and fees before deciding whether the market price makes sense.
Run a sensitivity check before sending the quote
Recalculate the same job with a higher waste rate, one extra setup interval and a slower cut-time estimate. If a small change removes the intended margin, the quote needs a larger contingency or clearer revision terms. Record the accepted input set with the customer quote so a repeat order can be compared on the same basis.
Quote buffer worksheet
Turn one base quote into a transparent guarded quote. The worksheet applies uncertainty only to the share of the quote you identify as variable, then adds a separate setup/revision allowance.
Formula: guarded quote = base quote + (base quote × variable share × uncertainty) + allowance. Replace every default with your own job evidence; this is a planning buffer, not a market-price guarantee.
Assumptions and limits
- The example values are planning assumptions, not measured performance for a specific laser, material supplier or operator.
- The formula does not determine market demand, tax, shipping, licensing, design ownership or local regulatory costs.
- Machine rate should reflect the operator's own equipment, maintenance, energy, ventilation and useful-hours assumptions.
- Target margin is a business decision, not a guaranteed profit outcome.
Why fee gross-up matters
The calculator divides batch cost by 1 - fee rate - target gross margin. A 3% fee is 3% of final customer price; the profit amount is the requested margin share of that same price.
FAQ
Should I charge by minute?
Minute-based pricing is useful, but incomplete. Small jobs often lose money if setup and design time are not included.
Should waste be included?
Yes. Offcuts, rejected layouts and failed test cuts are real costs even if the final customer only sees the finished part.
Turn the calculated cost floor into a customer-facing quote with the how much to charge for laser cutting guide.