Guaranteed Order Deadlines For Halloween!

 

Mod-Podge-Halloween-BannerHey there makers. If you’ve got something big planned for Halloween this year, these are the dates you’ll need to get your orders in by to ensure your goodies arrive in time:

Laser Cutting Order Deadlines:

Standard Making & Shipping Speeds: Last Orders by Thursday, 15th October 2015.

Upgraded Making & Shipping Speeds: Last Orders by Tuesday, 27th October 2015.

Metal Machining (PCM) Order Deadline:

Standard Making & Shipping Speeds: Last Orders by Wednesday, 7th October 2015.

3D Printing Order Deadline:

Standard Making & Shipping Speeds: Last Orders by Friday, 2nd October 2015.

Get Making Here!

Wholesale Pricing Strategies To Keep You Smiling!

vintage-sale-tags-psd_31-6546

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 …

Ideas for Creative Agencies & Brands – #16

Going BIG: Changing the way we see everyday objects

giantcomb.1_1200x1200

Every day we interact with hundreds of objects, barely giving them a second thought as they perform their designated functions. The transformation that happens when you dramatically upscale an item can be a real conversation starter, as is demonstrated by the giant comb bike rack pictured above.

This clever design was a response by Know How Shop LA to the question: “What would I lock my bike to if I were really small?”

Changes in scale can be a simple way to create an eye-catching impact, where often the more ubiquitous the item, the stronger the reaction will be. See how using laser cutting to go big can help your clients stand out from the crowd! Let us know about your ‘big ideas’ in the comments below.

Let’s Talk Ideas

Ponoko designs & makes promo products from scratch for event marketers.  Hit us up for a free quote.

Free Quote »

Guaranteed Order Deadline for Maker Faire

World Maker FaireHey there makers. If you’ve got something big planned for this year’s World Maker Faire New York these are the dates you’ll need to get your goodies in time for the big event:

Laser Cutting Order Deadlines:

Standard Making & Shipping Speeds: Last Orders by Thursday September 10th 2015.

Upgraded Making & Shipping Speeds: Last Orders by Wednesday, September 23rd, 2015.

Metal Machining (PCM) Order Deadline:

Standard Making & Shipping Speeds: Last Orders by Thursday September 3rd 2015.

3D Printing Order Deadline:

Standard Making & Shipping Speeds: Last Orders by Friday, August 28th 2015.

Get Started Here

Ideas for Creative Agencies & Brands – #15

Laser Cut Mobiles

laser cut robot mobile das wood

While there are some people who don’t give the humble mobile much thought outside of a baby’s nursery, for others the transformation that takes place as an object floats delicately through the air can be quite mesmerising.

Mobiles can take on many forms, as is demonstrated by the playful examples pictured here from Diana Jess aka daswooddesign. Hand-made from low impact eco-plastic, she used the compositionally friendly arrangement of four floating elements (pictured above)… but you can also have just as much impact with five, three, two or even one lone pendant suspension. It all comes down to how interesting your individual items are, and how well they balance when suspended.

laser-cut-mobiles-das-wood

Many of our favorite laser cutting materials are ideal to use in this application, as the silhouette of the object and the negative space around it contribute to creating a dynamic visual impact. The designs from daswood achieve this particularly well, using the strengths of laser cutting to make the most of the chosen material’s physical characteristics.

Where can you suspend an eye-catching promotional laser cut design from? Going beyond the standard ceiling mount, there are opportunities around us all the time. How about something dangling from the rear-vision mirror in a car, or clipped to the edge of a computer monitor? See what else you can come up with, and use the Ponoko Personal Factory to create a ‘space modulator’ that leaves a lasting impression.

Let’s Talk Ideas

Ponoko designs & makes promo products from scratch for event marketers.  Hit us up for a free quote.

Free Quote »

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!

Ideas for Creative Agencies & Brands – #14

High contrast laser cut layers

Laser cut and etched wood has a striking impact all on its own, but as this example from San Francisco creative duo b-spired shows, adding in a backing layer of bright colored card really makes things pop.

Enhancing the crisp lines and bold negative space that is such a strength of laser cutting, the layered card creates a high-contrast visual impact that completely transforms the natural tone of the timber. The same effect will be equally impressive when applied to other popular laser cutting materials such as acrylic and metals.

These greeting cards and invitations by b-spired also have a sturdy backing and a neat little pop-out stand, because when something looks this good, chances are high that people will want to display them.

Imagine how this technique would look when applied to corporate identities and company artwork. How can you use the Ponoko Personal Factory to create promotional laser cut layered items, inspired by b-spired?

Let’s Talk Ideas

Ponoko designs & makes promo products from scratch for event marketers.  Hit us up for a free quote.

Free Quote »

DIY Laser Engraver can be made for just $20

Build your own 3D printed laser engraver

With the smooth geometry of a classic arcade machine, the Photon Printer 3D printed laser engraver is a tiny technological wonder. Built as a DIY project by New Zealand engineer Stephen Brockett, the fully functional etching machine was put together using selected DVD burner components and just a few purchased items to fill in the gaps that could not be 3D printed at home.

In part, the project was made possible by salvaging the impressive innards of a standard optical drive, but don’t let Stephen’s modesty fool you… there are a lot of other clever design decisions that kept the total build budget at just $20.

“Optical media drives are actually pretty amazing, they have linear rails, stepper motors, lead screws and even end stops inside them… They’re pretty much an entire axis of a CNC machine ready to go!”

Keeping a healthy respect for the laser at the heart of the machine, a number of safety features were built into the Photon Printer. Nifty inclusions made possible by 3D printing like a roller shutter and angled rear vents (to stop reflected laser light escaping) can be seen in the video below.

The whole journey is fully documented on Thingiverse where it has sparked up a spirited discussion from other makers using the detailed instructions and downloadable files to print out their own versions. Perhaps you could even build on this design further using the Ponoko Personal Factory…

via 3Dprint

Ideas for Creative Agencies & Brands – #13

Laser Cut Annual Reports and Catalogues

Celebrating a company’s milestones and achievements, the Annual Report is an important document that can be further enhanced through clever use of laser cutting. By using typographic voids, multicolored layering and other similar techniques familiar to laser cutting designers, the published information becomes interesting and eye-catching in a way that invites the reader to explore further.

Pictured above are examples of laser cut cover artwork on Annual Reports and Catalogues from Under Consideration (top-left) and Croatian Post (lower-right) as well as internal content from Pelayo Insurance (top-right) and the Zuiderzee Museum (lower-left). We can see in these different approaches that selective application of laser cut elements can help to give a sense of prestige and style to the printed material.

Have you seen other interesting examples of laser cutting on business publications? Let us know in the comments below, and see if you can come up with a novel way to transform your next annual report into a dynamic document that has lasting impact using the Ponoko Personal Factory.

Let’s Talk Ideas

Ponoko designs & makes promo products from scratch for event marketers.  Hit us up for a free quote.

Free Quote »

Beginners Laser Cutting Cost Saving Guide: Part 5

Ponoko Cost Saving Guide

Product Recipe #1 – Part 5

Jill is a graphic designer from Oakland, CA. While riding her bike to work, she was inspired to create a set of custom-made bike gear-themed coasters to sell at local bike shops and in her Etsy Store.

Here Jill takes you step-by-step through the process she used to turn her idea into a profitable product with Ponoko. Making her coasters at the lowest price possible means she pockets a healthy margin selling to stores and direct to customers.

You can apply these steps to your own project, or you can download all the files here.

Laser Cutting Cost Saving Guide Part 5: Sell It

With my product line ready to go, it was time to make some money …

Packaging Your Product

Time to consider packaging. l wanted it to look great, but be very low cost. After a bit of experimentation, I came up with this for the cost of $1 per package:

Setting a Profitable Price

With all costs now calculated, it was time to finalize my retail and wholesale pricing.

To start, I used a simple ‘cost plus margin’ pricing model to ensure profitability …

First – Calculate Your Total Production Cost at Various Order Volumes

Total Production Cost = Making + Materials + Shipping + Packaging Costs:

Sets of 4 Coasters 1 11 56 461
Material Sheets 1 x P1 1 x P3 5 x P3 45 x P3
Free Account Cost $18.64 $123.67 $618.33 $5,070.33
Prime Account Cost $15.69 $91.93 $447.42 $3,028.12
Prime Cost / Set $15.69 $8.36 $7.99 $6.56
Packaging Cost / Set $1.00 $1.00 $1.00 $1.00
Total Cost / Set $16.69 $9.36 $8.99 $7.56

Second – Calculate Your Profitable Pricing

My rule of thumb is 1 : 2 : 4 … $1 of cost means a $2 wholesale price, means a $4 retail price. In other words:

Profitable Retail Price = 2 x Wholesale Price = 2 x Total Production Cost.

Hence:

Sets of 4 Coasters 1 11 56 461
Total Cost / Set $16.69 $9.36 $8.99 $7.56
My Wholesale Margin 50% 50% 50% 50%
Wholesale Price / Set $33.38 $18.72 $17.98 $15.12
My Retail Margin 75% 75% 75% 75%
Retail Price / Set $66.76 $37.44 $35.96 $30.24
Overall Profit 50/50 62.5% 62.5% 62.5% 62.5%

To profit, this shows my retail price needs to be between $30.24 and $66.76 per set of 4 coasters to retain a profit margin of 62.5% assuming a 50:50 split in sales across both retail and wholesale channels.

Third – Set a Retail Price that Feels About Right

The information above coupled with knowing the market price ranges from $15 to $50 per set, I decide that my original retail price target of $30 per set is a good place for me to start.

Hence my profits will actually be:

Sets of 4 Coasters 1 11 56 461
Retail Price / Set $30 $30 $30 $30
Total Cost / Set $16.69 $9.36 $8.99 $7.56
My Retail Margin 44% 69% 70% 75%
Wholesale Price / Set $16.69 $15 $15 $15
My Wholesale Margin 0% 38% 40% 50%
Overall Profit 50/50 22% 54% 55% 62.5%
Prime + Packg Cost $16.69 $102.93 $503.42 $3,489.12

This third table tells me a few important things:

1) My Minimum Order Size – To hit a 54% overall profit margin, I need to order & package at least 11 sets of coasters at $102.93 per order. This is a good place for me to start my business.

2) My Most Profitable Order Size – To hit my goal of a 62.5% overall profit margin, I need to order & package at least 461 sets of coasters at $3,489.12 per order. This is a good place for me when I get a reliable stream of retail and/or wholesale orders.

3) Minimum Wholesale Order Size – To hit a 54% overall profit margin, I need to sell to retailers in a minimum batch of 10 sets of coasters at $150.

4) Tough Retailer Negotiation – To retain my profit margin, a retailer will need to order at least 461 sets of coasters to get a wholesale price less than $15 per set.

5) Taking a Tiny Step First – I know I can order & package just one set of coasters at $16.69 and sell them retail at a 44% profit margin, which is really nice to know if I do not want to spend the next level up at $102.93. But I also know that I can not sell this small order size at the $15 wholesale price because I will make a loss.

Of course, if I’m just getting started I can relax some of these 1:2:4 pricing ‘rules’. But they’re a great place to benchmark what is actually going on with my cash.

Without profit I can not continue my passion of making things for others. With profit I create new possibilities for myself :-)

Profiting from On-Demand Inventory

Continuing on my theme of keeping costs low, I decided to keep my stock digital until I had customer orders. This way I have zero cost until I make a sale and collect the cash.

The third table above shows that I can order just 1 set at $16.69 to fulfill a $30 retail order at a 44% retail margin. But I make nothing on a wholesale order – which tells me I need to set a minimum wholesale order size of at least 10 sets. And, in general, to maintain healthy profits I probably want to produce at least 11 sets each time I get an order, so I have a tiny stock on hand for fast delivery.

My friendly bike store owner pre-ordered 10 sets of 4 cork coasters when I was user testing in his store. He paid me the $150 wholesale price.

So I made the following design (of 45 coasters):

Download design file for this step.

I sold 10 sets for $150 at a cost to me of $93.57 (= $83.57 production + $10 packaging). A 38% wholesale profit margin to get me started ($150 wholesale price – $93.57 total cost = $56.43 profit).

Promoting Your Product

I sell my coasters to retailers and on Etsy. Here are my top tips.

Good Photos Sell

Well lit, crisp high-resolution photos of your product are a must.

Describe Your Product Well

I describe what it is made of, what the dimensions are and what it feels like. I share a bit about myself as well, so folks can identify with me as a person.

Be Pro-Active

Don’t just sit back and wait for customers to come to you. In the case of local bike shops, I just walk in, introduce myself and start a conversation. For larger retailers, I search company websites to get in touch with vendor departments. Wherever possible, I speak directly to their buyers.

Go for it!

  • Imagine it
  • Design it
  • Prototype it
  • Make it
  • Sell it

It really is that easy and low cost to make money selling your own products. You’re only limited by your imagination and determination. Ponoko can help you with the rest :-)