# Pricing Pens



## Graybeard (Aug 18, 2015)

I'm curious if you have a formula or other method of pricing your pens. I find it's easy to loose money on them if you don't factor in time, materials beyond the kit and equipment depreciation. Of course when you figure that in the price may be so high it would be hard to sell.

Interested in some of your thoughts.

Graybeard


----------



## JR Custom Calls (Aug 18, 2015)

5x kit plus blank cost/value


----------



## Sprung (Aug 18, 2015)

I usually go at about 3 times the cost to make the pen - kit, blank cost/value, and a little bit for shop supplies. I will then adjust up or down a little, depending on what that equates to.

For example, it's easy to make a slimline for under $4. But there's no way I'm selling a slimline for only $12, so I adjust the price upwards to make it worthwhile for the time invested.

Reactions: Agree 1


----------



## Schroedc (Aug 18, 2015)

I'll agree with Matt, My usual formula is 3-4 x the materials cost (Make sure to inclede kit, blank, abrasives, finishing supplies, etc) and then adjust up or down a bit to get a nice round price. Although- for really high end kits and blanks with a lot of time into finishing you can sometimes justify a higher price and for some things that are quick and easy a lower price and made up on volume. 

Another thing to consider, If you are in a market where a particular pen is selling for more than the formula price it's OK to price up in that range so you take as much profit out of the deal as the market bears (I occasionally compete with other turners in my area and if they sell a pen for 50.00 there is no reason for me to sell it at 30. I can sell at 45, still be below their pricing and make a decent profit)

Reactions: Like 3 | Agree 1


----------



## kazuma78 (Aug 18, 2015)

I agree with the 3-4x kit and blank/ materials adjusted up or down depending on the item. As for dollar amounts, I have been pricing my bolt actions at $50 for a nice blank (but nothing too insane like HRB or anything) and my slimlines at $30. All of my pens have a deep CA finish and I let people pick the blank they want. I sold alot of Slimlines like that before the deployment and have about 8 bolt actions people have ordered after seeing the pen I brought with me out here that I will need to make when I get back.


----------



## ripjack13 (Aug 18, 2015)

A lil shameless plug for me....but it has more answers as well...

http://woodbarter.com/threads/question-of-the-week-2015-week-9.19973/

Reactions: Thank You! 1


----------



## Graybeard (Aug 18, 2015)

I figured this had been discussed but like CA finish some topics come up time and time again. Like the old saying, When the learner is ready, the teacher will appear. Or something like that.

Graybeard

Reactions: Like 2


----------



## Schroedc (Aug 18, 2015)

Graybeard said:


> I figured this had been discussed but like CA finish some topics come up time and time again. Like the old saying, When the learner is ready, the teacher will appear. Or something like that.
> 
> Graybeard



Patience Grasshopper, all will be told in the fullness of time. Become one with the pen and the answers will be made clear like the stillness of a pond on a high mountain top.

Reactions: Like 1 | Great Post 1 | Funny 3


----------



## duncsuss (Aug 18, 2015)

Schroedc said:


> ... 3-4 x the materials cost (Make sure to inclede kit, blank, abrasives, finishing supplies, etc) and then adjust up or down a bit to get a nice round price. Although- for really high end kits and blanks with a lot of time into finishing you can sometimes justify a higher price ...


I find the "really high end kits" do not command such a high multiplier.

For example, the solid silver ballpoint pen kit parts cost $79 (plus postage). No way I could justify charging 3x that -- when the amount of work involved in making the pen is not substantially greater than a ballpoint kit like the Vertex clicker. I priced it significantly higher than a Vertex clicker, of course, and the margin was higher -- but not a straight multiple.

Maybe I should have charged more ... but that customer has come back for another 2 pens (which will bring his total purchases from me up to 2 fountain pens and 3 ballpoint pens, nearly as many as I've got myself )

Reactions: Agree 3 | Great Post 1


----------



## Jerry B (Aug 18, 2015)

1st and foremost you price items for what your market will bear, especially if you'll be selling locally
after that, it's what you think your time/labor is worth
Personally, and I have a disclosure on my website, I would rather price things "cheaper" so that everyday hard working people can afford to own something nice
I'd rather make $30-40 profit off 100 people, and their referrals, than just $1,000 off 3 people and their referrals .......
In house sales (people are always stopping by to see what's available), and my Ecommerce website, items are priced mid-ranged
Items sold in local stores are priced higher for the tourists, which is where 70% of my profit comes from.
most of my ballpoints (cheaper pens) sell between $40 - $75
rollerballs are priced $60 - 125, and fountain pens are anywhere from $120 - $700

I can turn a pen in under 30 minutes, and what I sell each month pays all the bills, and puts money in the bank
I am a firm believer in Not being greedy, but being fair to everyone.

Reactions: Like 5 | Agree 3 | Great Post 1


----------



## Tony (Aug 18, 2015)

A little input from someone who doesn't turn pens, but does sell things. If it's a pen you make frequently ( or a kit you use regularly), I assume you can make it much faster than a one-off pen you've never make you should increase your price accordingly because of the extra time and learning curve. For instance, I make a lot of Texas shaped cutting boards. If someone calls and says, "hey, I want a New Mexico shaped board." It doesn't cost me any more money to make, but it does take a lot more time. I have to make a pattern, figure out how to lay it out, etc. Something to consider..... Tony

Reactions: Agree 3


----------



## duncsuss (Aug 18, 2015)

Tony said:


> ... a one-off pen you've never make you should increase your price accordingly because of the extra time and learning curve. For instance, I make a lot of Texas shaped cutting boards. If someone calls and says, "hey, I want a New Mexico shaped board." It doesn't cost me any more money to make, but it does take a lot more time. I have to make a pattern, figure out how to lay it out, etc. Something to consider..... Tony


I agree completely, and try to follow this principle -- but it doesn't always work out.

For one thing, if it's something I've never done before, I have no idea how much extra time it's going to take me to figure out the new moves, and even when I make a guess it's usually a serious underestimate.

That said ... I try to divide the learning curve costs across the first 3 or 4 units. If I get kickback on the price, I'll discount. If I don't (and it hasn't happened yet) I might keep the price at that higher level because I just proved the market will bear it


----------



## rdabpenman (Aug 19, 2015)

Pricing all depends on style and plating of components, barrel material, type of finish, your current local economy and type of venue.

Les


----------



## Graybeard (Aug 19, 2015)

Thanks everyone. Les you pretty much covered it. The key is figuring out the local economy and market. We were in the big city today for doctor's apts. On the way home we saw sweet corn sold for $4 a dozen in the city, $3 a dozen on the way home and where we live it's $2 a dozen. Kind of makes the point doesn't it.
Graybeard

Reactions: Like 1


----------

