The single biggest way laser sellers lose money is not bad cuts - it is underpricing. If you price by gut, you almost always forget half the real costs.
The real formula
Price = (Material + Machine time + Labor + Overhead + Failure allowance) × Margin multiplier. Material is easy. The rest is what people skip.
Don't forget these
Machine time is a real cost (electricity, wear, and your capacity). Labor includes design, weeding, sanding, finishing and packing - not just the cut. Overhead is rent, software, consumables. Failure allowance covers the pieces you will ruin. Only after all of these do you apply a margin.
Worked example
A coaster set: $2 material + $1 machine time + $4 labor + $1 overhead + $0.50 failures = $8.50 true cost. At a 2.2× margin that is ~$18.70 - not the $10 a gut-pricer would charge. That gap, across hundreds of orders, is your entire profit.
Make it automatic
A built-in Price Calculator does this per product, saves it to the order, and keeps your margins consistent so you stop leaving money on the table.
FAQ
What margin should I use? Many makers use 2-3× true cost for retail and lower for wholesale, then adjust to their market.
Should I charge for design time? Yes - custom design is labor. Bake it into labor or charge a separate design fee.
Price your next product in seconds. See how Price Calculator works.
Related reading: 30 laser product ideas that sell · How to start a laser cutting business.