Wholesale Pricing Strategies To Keep You Smiling!


Pricing for wholesale doesn’t necessarily mean cutting your retail price in half. In fact, that’s more likely to make your wholesale prices unsustainably low. Instead, when you set your wholesale price, you need to price for profit.

Pricing for profit at the wholesale rate

When planning your pricing, you first need to come up with a wholesale price that pays you for your time, labor, materials, packaging and everything related to the core of your product. This price should have profit built into it so that you are able to stay afloat and grow your business.

Once you’ve set your wholesale price, perhaps double that price to create your retail price (the suggested retail price to your wholesale customers). And when you sell your product yourself via ecommerce, use the same ‘suggested retail price’.

What to include in your pricing formula

When pricing, we suggest you consider:

Labor: This is not negotiable. Build labor into your price, so you can easily hire someone in the future.

Cost of goods: You have to include every single material used to create your product.

Profit: The margin needed to reinvest in your business. Without profit, you can’t grow, hire, or even take a break from your business.

For labor, consider what you would feel comfortable paying an employee per hour, and work out how many of your products you can make in an hour to figure out labor costs per product. Do not include your labor for ideating or designing (these go into the general expenses category discussed at the bottom of this post), only include the labor directly input into the making / assembly of each product.

The Ponoko formula for success

At Ponoko, we’ve spent years experimenting with multiple formulas to arrive at one that works best, is easy to remember and even easier to implement. Here’s what we think wholesale pricing should look like:

Cost of Goods = Product Cost (Making + Materials + Shipping + Making / Assembly Labor) + Packaging Cost.

Wholesale Price = Cost of Goods x1.5 at least (to get you started), and preferably x2 or even better x3.

Retail Price = Wholesale Price x1.5, x2 or x3 as above.

When starting out, we recommend you stick to this formula because it’s the easiest way to calculate your pricing, and all the information needed for these calculations is easily available.

Calculating overhead costs and general expenses 

It’s too tough to try and work out how much of your power bill or your ideation or design time should be allocated to any one product you sell. So let’s not try. Instead, use your near constant monthly expenses to calculate your break even point – the number of products you need to sell at the price you set to cover all of your general expenses.

For example, if your expenses are $1,000 per month (including design labor) and your product costs you $25 (including making labor), this means:

* If your retail price is set at $100 (gross profit of $75), you need to sell 14 units of your product at retail every month to break even.

* If your wholesale price is set at $50 (gross profit $25), you need to sell 40 units of your product at wholesale every month to break even.

This example shows the power of increasing your prices (and keeping cost low), because the more profit per product, the less number of them you’ll need to sell each month to break even and start making a decent profit!

Please feel free to share in the comments below other ways you might calculate your pricing …

All The Laser Cut Parts Of The Body

Laser cut Wookies, crows, teeth, and heart!

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Above is a granite coaster of Chewbacca. It is laser etched into granite and comes from So Hot Right Now. This would be great laser etched into Ponoko.com‘s Black Acrylic.

After the jump, crows, teeth, and heart! (more…)

Ponoko Customer ‘Catapults’ Past Kickstarter Goal With Ease

Another Kickstarter success using Ponoko

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Office wars don’t always have to be nasty email battles. Sometimes they can be fun too! Armed with this idea, Apptivus – a collective of creative thinkers came up with ‘PennyPult’.

Presenting, the PennyPult

The team at Apptivus has a successful history of designing exciting products including mobile apps and games as well as physical goods. The PennyPult is miniature siege weapon. By definition, it is a trebuchet or a gravity-powered catapult. The kit comes with everything you need to build your very own desk sized trebuchet. All you need is a flat surface and 16 pennies.

Apptivus believes the PennyPult is a step above the other trebuchet kits on the market because it’s smaller, easier to build, and more fun. Additionally, it has a unique design they claim you won’t find anywhere else.

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The PennyPult gets its special look from the stacked counterweight design. Unlike a traditional trebuchet, the counterweight is positioned above the throwing arm. In addition to having a unique throwing action, it actually increases the throwing distance. The PennyPult can throw a projectile up to 35ft! Not bad for a machine that stands only 9 inches tall. Plus, it’s easy to load and fire and you won’t have to deal with finicky slings, tangled lines, or misfires.

Designed with precision through Ponoko

Using laser cut parts from Ponoko, constructing a working trebuchet has never been easier. A PennyPult can be constructed in less than 15 minutes and without the use of tools. It requires no glue, no sanding, and no knowledge of woodworking. The precision laser-cut pieces simply snap together. The other pieces are made of brass, copper, rubber, and acrylic ensuring you wont be disappointed with its quality.

Blowing the roof off Kickstarter funding goals

 The first PennyPult was created in January 2015. Since then, it has gone through countless iterations and improvements. Months later, the team at Apptivus had something they were really proud of. After a first production run in May and having received positive feedback from friends and family, they decided to take the project to KickStarter. Their goal was to raise $2,000 from August to September.

Screen Shot 2015-08-28 at 4.19.57 PMYet, nothing could have prepared them for the overwhelming success they were about to witness. They breezed past their original funding goal and saw the figures increase by a whopping $6000 in just one weekend.

And with a few days still to go, they have exceeded their original budget by 15 times to raise an astounding $37,989 and the money is still pouring in.

The PennyPult is available through Kickstarter at a discounted price, with kits ranging from $25-$150. And if reading this has inspired you to launch your own hardware idea, make it and sell it with Ponoko today!

Laser Cut Credit Cards

Amex Plastic Re-Imagined


With a rich history in highly refined laser cut art pieces, French design agency Future Marketry were the right guys to bank on for American Express. The financial giant commissioned them to create interpretations of the three classic credit cards – Green, Gold and Platinum.

The results are a dynamic sculptural interplay of light and shade as the contoured laser cut surfaces replicate the holographic sheen of the actual cards. All this is achieved in multiple layers of poplar ply, brass and acrylic. This is a fantastic example of how to create a sense of depth and visual complexity using 2D laser cutting. Click through to the source for more detail images from the series.


What other clever examples of laser cut light and shade have you seen? Let us know in the comments below.

Future Marketry via Inspire Me

Laser Cut Junk (Food)!

Laser cut baskets, junk food, and California!

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Above is a flower basket box, It is intricately laser cut from 1/8″ Baltic birch – like Ponoko‘s own Birch Plywood –  and comes from Cedar Street Design.

After the jump, junk food, and California…


A Lust For Laser Cutting

Laser cut bracelets, art, backhoes, squids, and arrows!

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Above is a mandala bracelet. It is laser etched and cut into leather and comes from Rock Body Leather. Ponoko‘s own Leather (Vege Tanned) would be perfect for this.

After the jump, art, backhoes, squids, and arrows… (more…)

How To Tie A Laser Cut Knot

Laser cut a Celtic knot, sunglasses, girls, and a typewriter!

Above is a Celtic Knot necklace. It is laser cut and etched from leather like Ponoko’s own Vege Tanned Leather and comes from Firebird Leather.

After the jump, sunglasses, girls, and a typewriter…


Share Your Google Cardboard Design Idea, Win Your Share of $250 Making Vouchers

We’ve giving away everything you need to create your own custom Google Cardboard

You’ve heard about Google’s VR viewer, you’ve seen the cool things it can do, and you know how to make one for less than $10 with Ponoko.

Wouldn’t it be cool to make one for FREE?

We’ve got 3 Google Cardboard Kits and over $250 worth of laser cutting that we’re giving away to folks with the best ideas for a custom Google Cardboard headset.

Google’s kit is based around making with cardboard, and the manufacturing specifications are open source. This makes it perfect for developing and prototyping your killer idea with laser cut parts from Ponoko.

Maybe one button isn’t enough for the game you’re developing. Maybe you want an oversized headset that works with your iPad. Maybe you just want a shiny gold acrylic VR headset to match your gold watch.

Whatever your idea is, we want to hear it. The folks with the best ideas will get a head start on making their ideas a reality with one of the following prizes:

1st Prize – Google Cardboard Hardware Kit + $150 Worth of Laser Cutting
2nd Prize – Google Cardboard Hardware Kit + $75 Worth of Laser Cutting
3rd Prize – Google Cardboard Hardware Kit + $35 Worth of Laser Cutting

How to Enter:

Simply describe your idea in the comments below. Include a mockup, sketch or other visual aid that shows what makes your idea great. Multiple submissions welcome.

About the Prizes:

Hardware kit includes everything you need to get started: Two 25mm diameter lenses, one ring neodymium magnet, one ceramic disk magnet and a set of sticky-back velcro strips. Free laser cutting is issued in the form of Ponoko Making Vouchers. The original Google Cardboard costs less $10 to make with Ponoko, so the $35 prize is more than enough for three iterations!

Judging Criteria:

Finalists will be selected using the following criteria, in no particular order:

  • Originality.
  • Interesting use of material(s).
  • Production feasibility and/or market appeal.

Submit your idea before next Friday, August 14th. The best ideas as voted by the Ponoko team will be announced on Monday August 17th.

Don’t hesitate to let us know if you have any questions, or things we can assist with.

Good luck!

Update 18 Aug: Congratulations to the winners!

First Prize – Richard for steampunk Cardboard

Second Prize – Tana for a Cardboard with a proximity sensor.

Third Prize – Kevin for a Cardboard stand that allows for time-lapse photos or other similar time consuming techniques.

If you are one of our winners, please check your email for details on how to claim your prize. Thanks again to everyone who participated!

Laser Cutting On Air!

Laser cut plant holder, merkaba, lipstick, sock blockers, and a statement (necklace)…

Above is a air plant holder. It is laser cut from wood – like Ponoko‘s own Birch Plywood – and comes for Tamale Grande Design.

After the jump, merkaba, lipstick, sock blockers, and a statement (necklace)… (more…)

Happy Laser Cutting!

Laser cut cake toppers, avocados, unicorns, and beakers!

Above are 2nd birthday cake toppers. They are laser cut from wood like Ponoko‘s own Birch Plywood and come from Planet Mithi.

After the jump, avocados, unicorns, and beakers… (more…)