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 :-)

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Booboo – The Interlocking Bamboo Drone

Interlocking bamboo drones from Andy Shen

There’s a lot of buzz around Andy Shen’s drones – and it’s not just the hum of his multi-rotor quadcopters. Earlier this year Motherboard featured Andy’s drones in their coverage of the first ever drone dogfight.

Since then, Andy’s been hard at work on his latest drone, the Booboo. Made from laser cut bamboo, the Booboo’s lightweight frame can be assembled like a 3d puzzle without the need for any glue or hardware. This unique interlocking design makes assembly a snap, while keeping the total weight of the drone to a minimum.

Check out the video below to see the Booboo in action:

Andy got his start flying drones in 2012 as a way to take aerial photographs of bike races. As a professional photographer and an amateur bike racer, Andy was enthralled with the idea of shooting races from the air. Once he started flying, he immediately saw improvements he could make to the drones on the market, so he began designing drones of his own.

After creating his racing quadcopter from CNC’d carbon fiber – the Fast Forward – He got the idea of making laser cut drone frames from Bamboo. His first step was to get his hands on a laser cut sample:

“I was pleasantly surprised to find laser cut bamboo is way cheaper than CNCing G10 or carbon. It also might be pretty light. I measured its surface area by counting pixels in Photoshop, and comparing that to a sample piece I get 112 grams for the frame, which is right on par with carbon frames!”

Andy started work on the Booboo using Google Sketchup. “It helped to build it in a 3d program to make sure all the parts fit correctly.” Andy says, “It’s a great way to visualize things and catch mistakes.” After a night of feverishly designing, he submitted his designs to Ponoko, and had a working prototype in a few weeks.

Andy’s first prototype went through two months of iterations before being ready for production. Andy details his process of testing, flying, designing and iterating over on his blog. After four iterations and a handful of crashes, Andy was ready to put the Booboo into production.

To achieve the Booboo’s unique interlocking design, Andy needed just the right amount of control over his parts, while still having access to Ponoko’s designers when he needed them:

“On the one hand, I love being control: I place the order and I upload the drawings. I’m solely accountable for the accuracy of my order.” Andy says, “On the other hand, the tight tolerances of the job required human supervision, and I was well taken care of by the crew to ensure that the materials met my specifications. It was really the best of both worlds.”

Andy credits Ponoko Prime for helping him keep the costs of his final product down. “You can’t beat Prime” Andy says, “Prime brought my costs down and allowed me to offer the Booboo at the right price for my customers. The Booboo is only viable at a certain pricepoint, so without Ponoko and Prime it would never see production.”

I asked Andy which drones are his favorite, and where he likes to fly. “We have a few spots in the city” Andy says “and we also have a club out on Long Island for weekends. For pure speed I fly the Fast Forward, and if I want to zone out and feel like a bird I fly the Booboo.”

Andy’s advice for designers just starting out with their own product line? “There’s few things more gratifying than seeing your idea realized in a tangible object” Andy says “There’s tons of great tips on the Ponoko site, so read them all and go for it.”

You can read about all of Andy’s drones at shendrones.com, and you can get a drone of your own at Andy’s Shopify Site.

Inspired to create your own product line? Make it with Ponoko!

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Beginners Laser Cutting Cost Saving Guide: Part 4

Ponoko laser cut cost saving guide 1

Product Recipe #1 – Part 4

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 4: Make It

And now for the fun stuff…

My Final Design & Material Choice

From the price testing and cardboard prototype earlier, I decided on this final design. And from the three $2.50 material samples I bought earlier, I decided to do my first real test using the cork material:

Download design file for this step.

Make a Few for User Testing

I laid out my winning coaster design onto a template for the smallest P1 material sheet size and ordered:

Yippeee! My Final Product

A few days later I received a very special delivery. I was pretty excited!

Time for User Testing

I tested my coasters with potential customers – biking friends, my friendly bike store owner and his customers. They loved the design and I took pre-orders.

But some wanted a different material. So I repeated the process above to make some in black acrylic …

Final Product Line!

With cork and black acrylic coasters in my new product line, I was ready to sell.

Making tests in the final material choice enables you to trial your actual product with potential customers. This way, you can get a real feel for how people will respond to your design, and also make any last-minute changes in response to genuine feedback before moving ahead with the final production run. It was through this process that Jill discovered a demand for alternate material options, an important marketing opportunity that she otherwise may have missed.

Next up in Part 5 of this Ponoko Product Recipe we look at preparing the product for sale and making sure that the final pricing is right for the coasters to sell at a profit.

How have you tested your production-ready designs before moving on to the final sale item? Tell us about your experience in the comments below.

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Spend $50 or more at Ponoko, get a FREE $50 Making Voucher

An Independence Day deal for the independent designer

This summer we’re celebrating Independence Day by offering up an independent designer’s favorite deal:

Spend $50 or more at Ponoko, get a FREE $50 Making Voucher.

This is our first offer of the year, and one of only 1-2 per year, so get it while it’s hot!

To get your $50 making voucher:

  1. Log in to your Ponoko account. If you don’t have one, sign up for free here.
  2. Place an order for $50 or more at the Ponoko US or NZ hub.
  3. Type ‘July15’ in the coupon box while checking out, and we’ll email you your $50 Making Voucher.

Things you should know: Offer good for making stuff with laser cutting at Ponoko in the US or NZ. Showroom, Metal, 3D or sample store purchases do not qualify. $50 minimum does not include shipping. Other coupon codes or vouchers cannot be used with this offer. Offer totally valid for Ponoko Prime accounts! Offer ends at 11:59pm pacific time on July 4, 2015

About the free Making Voucher: Promotional making voucher is good towards the making costs of a future laser cutting order, not the initial $50 order. One promotional voucher per account. Promotional voucher must be used before the end of summer, ‘officially’ September 22, 2015. Promotional vouchers cannot be split between multiple orders.

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Second Time’s a Charm: The Sleep Sensei Kickstarter Comeback

5 Lessons from an unsuccessful Kickstarter

Jeremy Wilson is the mechanical engineer behind the Sleep Sensei – A sleep coaching device that sits on your nightstand and gently guides you towards a deep, restful sleep.

Last November, Jeremy set out to secure funding for the Sleep Sensei on Kickstarter. While the first campaign raised over $2,500, the project still fell short of it’s goal.

Now Jeremy is back with a new video, a revamped campaign and an updated Sleep Sensei.

So what did he do differently? What lessons did he learn? Here are five key take-aways from his Kickstarter to yours:

#1 Set the Right Goal
Being flexible with the amount of units he planned to sell was important to Jeremy, especially given how the first campaign hit only 10% of his original goal. Thanks to scalable manufacturing from Ponoko, Jeremy’s second Kickstarter goal could be more conservative: “I have plans for how I can produce 100 units, and how I can produce 1000+ units” Jeremy says, “while still keeping my costs low enough to recoup my development costs.”

One thing to keep in mind: setting a smaller goal won’t keep you from having a huge success. In fact, people are more likely to pile on once they see you’ve met your goal.

#2 Get a Hand With Your Video
According to Kickstarter, projects with videos succeed at a rate of 50% while those without tend to only get funded 30% of the time. So how do you make sure your video is a success? For starters, don’t do it all yourself. Get someone else behind the camera so you can focus on sharing your passion with your audience. This time around, Jeremy got help from his girlfriend to shoot & direct the video. In addition, he reached out to lots of friends and family to get feedback before posting. “I found it was very useful to get outsider’s opinions on these things” says Jeremy, “they could catch details that I left out, or things that were unclear to those unfamiliar with the product.”

#3 Get to a Final Design, Quick
Soon after the prototyping phase is over, most hardware founders start making plans on how to launch a pre-order campaign on Kickstarter. This has several advantages: you can get feedback from your backers before you’ve set your design in stone, and you can beat any potential competition by being first to market.

But this approach does have it’s drawbacks: “In my last Kickstarter the design of the Sleep Sensei was not finalized, so backers didn’t necessarily know what to expect would arrive at their doorstep when the campaign ended.” Jeremy says “Between the end of the last campaign and this one, I finalized the design, added a few features to the functionality of the device, and made a handful of test units to get confidence in the manufacturability and usability of the product.”

#4 Don’t Forget About Your Offline Audience
By finalizing his design early, Jeremy was able to test out and get first hand reactions to the Sleep Sensei. He brought the finalized prototype to the Bay Area Maker Faire and listened to the kinds of questions potential backers had. Any questions that came up repeatedly were added to his project’s F.A.Q.

In addition to spreading the word, getting offline input like this provided Jeremy with customer feedback and insights that he couldn’t have gotten online.

#5 Get The Word Out
Kickstarter is a chance to put your project into the world, but it won’t happen if you don’t tell people about it. “You can have the best product in the world,” Jeremy says, “but nobody will find out about it without a bit of networking and marketing. Find a local maker space, find a meetup, share your ideas with your friends, attend a convention, or find a forum online that would be interested. Get the word out any and every way you can!”.

In addition, try to get your product into the hands of as many people as you can while you’re still developing it. In Jeremy’s case, this meant running an informal sleep study with users he found on an insomnia form, and using their feedback to craft his final product.

The Takeaway:
Even if your first Kickstarter doesn’t succeed, the lessons you’ll learn will be indispensable. Sometimes, a failed campaign is the perfect way to learn how to succeed next time around.

If you are one of those folks who just can’t stop their mind racing at the end of the day (maybe obsessing over the details of your next crowdfunding campaign?) then head over to Kickstarter to get your hands on a Sleep Sensei of your own.

Was this post helpful to you? Got any comeback tips of your own? Let us know in the comments.

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Beginners Laser Cutting Cost Saving Guide: Part 3

Keep your laser cutting costs down with the Ponoko Product Recipe

Product Recipe #1 – Part 3

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 3: Prototype It

My goal was to find a happy compromise between design aesthetics (look/feel) and efficient engineering (cost).

Zero Cost Prototyping!

Before I paid to make anything, I used my Personal Factory to price lots of design iterations instantly. I learned a whole lot and it didn’t cost me a bean …

Summary:

Target Production Cost = $1.88 per coaster (75% off retail).
First Quote – #1 = $5.40 per coaster (28% off retail).
Final Quote – #9 = $1.64 per coaster (78% off retail) !!

Here’s what I did to reduce my production cost, without actually making anything:   (more…)

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Beginners Laser Cutting Cost Saving Guide: Part 2

Keep your laser cutting costs down with the Ponoko Product Recipe

Product Recipe #1 – Part 2

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 2: Design It

Now that I had an idea of where I wanted to go, it was time to prepare my first design for laser cutting. Here are my top tips.

Download a Laser Design Template

Open a Personal Factory laser design template in Adobe Illustrator. Using the template makes it so much easier to get a good result.

Use Existing Images

I did an image search to find a few gears with crisp images on a clean white background to make outlining easier:

Next – I imported the images into Adobe Illustrator, and converted the gears into black outlines:

Get the Essentials Right – Line Colors & Widths

I needed to use these settings to cut along the lines of the gear drawings:

* Stroke Color – Blue (R0, G0, B255).

* Stroke Width – 0.01mm.

To engrave along the lines of the gear drawings I needed to use these settings:

* Stroke Color – Red (R255, G0, B0).

* Stroke Width – 0.01mm.

To summarise Part 2 of the Laser Cutting Cost Saving Guide; Jill downloaded a design template from Ponoko, selected an image and refined the linework in Illustrator, and then ensured that the line colors and widths were compatible with the laser cutting guidelines provided in the template.

With the design sorted, our next step is to look at making a prototype. Continue reading Part 3 of this Ponoko Product Recipe for handy tips that will keep your laser cutting costs as low as possible.

How do you prepare your designs so that they are ready for laser cutting? Tell us about your process in the comments below.

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Hiring a Content & Email Marketing Manager

ARE YOU A COMMUNICATOR WHO WANTS TO JOIN A DIGITAL MAKING PIONEER?

We have a part time Content & Email Marketing Manager role (developing into a full time role if you wish) for a B2B communicator who’s in the digital product design, making and commercialisation space.

You’ll be leading, planning, creating & promoting remarkable content and email newsletters for our online community of 145,000 makers, designers, Kickstarter entrepreneurs, ETSY sellers, brands/businesses and creative agencies. And to help us change the world.

ABOUT YOU

* You believe what we believe … That mass production is going local.

* You value what we value … That striving for greatness is exciting.

* You have a deep desire to help makers, designers, Kickstarter entrepreneurs, ETSY sellers, brands/businesses and creative agencies be successful at making beautiful custom products, and commercialising them. This will make it easy for you to smile, persevere and shine through the ups and downs our customers experience on their personal creative journeys, and the ups and downs we experience on ours.

* You are:

- In love with writing and storytelling. Especially B2B content for makers.
- Experienced with digital making (laser cutters and/or 3D printers).
- Someone who loves to focus on writing shareable content.
- A crack interviewer and an excellent editor.
- Skilled at content SEO (keyword research, placement, links). Know basic HTML.
- Practised at audience segmentation for email marketing.
- A natural at content promotion across various channels.
- Excited by metrics and measurement, because we can’t improve without.
- Effective at project management, especially the content schedule.
- An expert in tools like Wordpress, MailChimp & Kissmetrics.
- A happy soul. Who communicates well with our global team. And likes a laugh.
- Proactive. Detailed. Process driven. *All three.*
- Someone who loves to lead, and prefers working independently.
- Ideally, but not essential, someone with skills in graphic design, video editing, content hub creation and building, Moz, BuzzSumo, Hittail and other such tools.

ABOUT THE ROLE

You’ll be our part time Content & Email Marketing Manager (2 – 4 days per week). You’ll be the trusted public voice of our company. You’ll enable us to connect with and nurture people from being strangers to visitors to members to customers to advocates.

Your typical work includes:

* Achieving 2 Key Goals – new account/email signups (customer acquisition via promoted content) and new revenues (customer retention via email marketing). Mutually agreed, then measured and reported weekly.

* Content Hub & Email Marketing Schedule – create, manage & execute our new content hub plan (with SEO firmly in hand), plus content creation and promotion schedule (including fortnightly email newsletter). Includes managing at least 2 content contributors.

* Content Success Measurement – manage existing and implement new tracking to measure the success of our content & email marketing. Analyse & interpret metrics in light of our goals, and adjust future actions accordingly.

* Content Creation – research and create new (and repurpose / repackage existing) self generated & user generated content. Includes your stories about materials, how-to make/sell & our customers. Also includes copywriting for our product updates and general news supplied by team members.

* Content Promotion – via fortnightly newsletter creation & distribution to audience segments, via owned media (EG – our social accounts) & via earned media (EG – blogger relationships).

* Attending 2 Weekly Meetings – one full team discussion about company and individual goals & results, plus one content & email marketing discussion about plans & tasks to achieve goals.

BENEFITS

* Freedom and independence to lead and make this all yours.
* Competitive market pay.
* Minimum 4 weeks paid time off per year.
* Employee rates on laser cutting your own stuff.

ABOUT US

Dreamed up in 2006, Ponoko believes mass production is going local.

We saw a possibility of the third industrial revolution (distributed digital mass production) growing out of prior revolutions (centralized analog mass production).

Hence in 2007 Ponoko launched at the first TechCrunch conference as the world’s first to enable designers to make & sell downloadable product designs online.

Since then a community of 145,000 makers, designers, Kickstarter entrepreneurs, ETSY sellers, brands, businesses and creative agencies have made over 425,000 custom products online. And they’ve sold them via our website, their own websites, ETSY, Kickstarter, design events, to main street retailers, and gifted them to friends, customers, at conferences and promotional events.

With no minimum order size, online quoting and online making, it’s 10x faster than ever for designers to prototype, make and sell their custom product ideas online.

Recognised as a pioneering leader of the online digital making industry, we have been featured in places like The Wall Street Journal, The New York Times, USA Today, CNN Money, Inc. Magazine (cover story), Forbes, Wired, Core77, TechCrunch, Makezine, MIT Technology Review, BBC News and The Economist.

Your appointment will enable us to use your content marketing skills to increase website traffic and signups, and your email marketing experience to increase revenues via customer activation and retention.

TO APPLY

Email derek-at-ponoko-dot-com to send your resume, your 3 favorite writing samples (including an infographic if you have one), and your answers to these questions:

1) Why do you want this role?
2) What gaps might exist between what we need and what you have?
3) Why are you the best person for this role?

We’re looking forward to meeting you …

Related posts:

Beginners Laser Cutting Cost Saving Guide: Part 1

Keep your laser cutting costs down with the Ponoko Product Recipe

Product Recipe #1

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 1: Imagine It

First up, I needed a plan. A clear idea of my product, who it would appeal to and how much I needed to make and sell it for in order to turn a profit.

Your Product User

Take a moment to consider who will be using your product, and why. I had bicycle enthusiasts and their thirsty friends in mind.

Your Product Design

Rough out your design. I mostly tried to get a few ideas I had floating around in my head onto paper.

Your Product Materials

My coasters needed to look good, but also stand up to repeated use. I was thinking materials like black acrylic or natural cork. So I bought a few $2.50 material samples. I kinda liked the cork:

Your Target Price, Cost & Profit

Some basic research showed a set of 4 custom-made coasters retails for between $15 and $50 – with many sitting around $30. Working backwards, I calculated my ideal price points.

Your Design Challenge

Now you have your design challenge. Mine was to design a set of 4 bicycle themed coasters at less than $7.50 for making, materials and shipping from my Personal Factory. That’s a target production cost of $1.88 per coaster (75% less than a retail price of $7.50 each).

To summarise Part 1; Jill has identified her market, roughed out a design, investigated material options and worked out her design challenge based on a realistic retail price point.

In the next instalment for this Ponoko Product Recipe, we take a look at the digital design process for making a laser cut bike gear coaster. Jill talks us through preparing a file that is ready to send to the laser cutter.

Have you used Ponoko material samples to help in the early stages of your own design process? Tell us about it in the comments below.

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Top Ten Ways to Reduce Laser Cutting Costs

Understanding how to get the most out of your Personal Factory

Have you ever wondered how to reduce your laser cutting costs? Whether you are making for profit or just for fun, it always helps to know you are getting the most bang for your buck. Ponoko’s series of Top Ten Ways To Reduce Laser Cutting Costs aims to do just that, by breaking down the key contributors of Making, Materials, and Shipping.

In this overview, we take a look at what was covered in the Top Ten list.

It all begins with understanding how laser pricing works. With Ponoko, thousands of designers are successfully making products at low cost – with many able to achieve comparative savings of up to 90% less than retail.

They’re able to do this because they know how to best use their Personal Factory to design for laser cutting.

The critical things they understand are:

  • Design – EVERY design feature results in more cost. Hence: Start very simple.
  • Materials – EVERY inch is highly valuable area. Hence: Use every inch.
  • Shipping – EVERY order over $100 is free to ship. Hence: Prototype small, finalize bigger.
  • Account – EVERY Prime order cost 32.5% less to make than Free account orders. Hence: Time your upgrade.
  • Volume – EVERY Prime order over $1,000 cost up to 55% less to make than Free account orders. Hence: Time your upgrade.

Avoiding high costs that can give you quite a fright, Ponoko designers understand they need to price test, test, test, test and test again their “brilliant” and “visionary” product designs. A product is rarely brilliant if it never comes to life because the design failed to appreciate the highs and lows of the making process and materials.

Remember that you pay for every minute the laser is cutting, engraving and travelling between cutting and engraving – this means you want a great design that takes as little laser time as possible.

The following design features cost more because they take more time for the laser:

    • Cutting longer lines takes longer than cutting shorter lines.
    • Cutting lots of short lines takes longer than cutting a less detailed design.
    • Cutting two lines on top of one another takes longer than cutting a single line.
    • Cutting circles takes longer than cutting straight lines.
    • Cutting or engraving designs placed far apart takes longer than cutting or engraving designs placed next to each other.
    • Cutting thicker materials takes longer than cutting thinner materials.
    • Cutting harder materials takes longer than cutting softer materials.
    • Engraving lots of lines takes longer than engraving a few lines.
    • Engraving solid fill areas just takes a long time.
    • Shipping larger sheets further cost more than shipping smaller sheets closer.
    • Larger material sheets cost more in total than smaller sheets.
    • Larger material sheets cost less per item on the sheet than smaller sheets.

When these considerations become a part of your workflow it will make a huge difference to how much your laser cutting costs.

In the Ponoko series of  Top Ten Ways to Reduce Laser Cutting Costs, the key considerations of making, materials and shipping have been optimised to give you the best possible outcome. So keep this list handy and follow the advice; ask us questions in the comments below if you get stuck on anything… and we look forward to seeing what you make next!

Ponoko’s Top 10 Ways To Reduce Laser Cutting Costs:

1. Digital Prototyping

2. Paper Prototypes from your home printer

3. Make a cardboard version first

4. Start small

5. Keep Details Simple

6. Avoid Double Lines

7. Group Parts Together

8. Line vs Area Engraving

9. Material Thickness

10. High making costs? Try Ponoko Prime

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