How much do I charge for my product?

[Schock]

The units cost me $30 each to produce and I can make one start to finish in 2 hours. Anyone have any rough ideas what to charge this guy?

http://img71.imageshack.us/img71/5924/partsbh8.jpg

I'am a 24 year old kid with lots of self taught skills. I do welding, metal fab, electronics, chemistry, computers, engine mechanics, etc.. Recently I got into composites. After beign laid off from a terrible company I decided to use the scraps I collected during my 2 years of employment to open a small business. I currently may have a contract making these hemispheres for camera turrets. I have no idea what to charge this guy. I have developed 2 solid molds, and a silicone mold just for exparamentaion. And have produced 4 ready to ship parts in less than month. The parts look pretty good, a few pin holes in the surface. 1 ply carbon 2 plys glass, west systems, or EPON epoxy used. He may want 50 plus parts.

 

[berkshire]

Schock (Structural)
First you need to add up all of your costs, Building rent,
Electricity, materials, labour( or how much you would like to get paid),tooling costs, if you think you may sell 50 PCs divide it up over 40 parts.
Make sure your material cost is current for new material not for stuff you already have in stock.
Having done all this you can come up with a genuine cost to you. Now look around the market place and see what others charge for the same product.
Only now can you figure out what to charge.
B.E.

 

[amorrison]

Ask your buyer what is a typical price for similar products -you might be suprised how high similar products are selling for.

A car mechanic might be working for $20 per hour but the shop charge out rate is $65 per hour. Your skills are much more specialized (higher $)than a mechanics but your "market" is much smaller also.

 

[EricatNordic]

The super quick answer is if he is an end user 3X your cost to build all 50. include the tools/molds exc. If he is a distributor or wholesaler or something then it depends on volume, but discount 50-75% from that number.

But thats a hack at it.

You really needs to price materials at the volume you will buy for, adjust for inflation while your building these parts, amortize your sunk cost and overhead across what ever time it takes to build these parts, and decide how much you want to pay yourself for your time.