One of the biggest challenges beginners face when starting a laser engraving business is figuring out how to price their products. Price too high, and you won't get any customers. Price too low, and you'll end up working for pennies an hour and you won't make any profit. So what's the right way to price laser engraving products?
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In this complete guide, we'll walk you through the different pricing methods, how to calculate your costs, what markup you should use, and what price points are common for popular products in 2026. Whether you're just starting out with an entry-level machine like the Tyvok A1 Mini or you're running a full-time business with a Tyvok P2 10W Galvo, these pricing principles will help you price your products profitably.
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The Basics: You Must Include All Your Costs
Before you set any prices, you need to understand all of your costs. Many beginners only think about the cost of the material (the blank tumbler, the piece of wood, etc.), but they forget to include all the other costs that go into every product. If you don't include all your costs, you'll underprice your work and you won't make any money.
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What Costs Should You Include?
1. Material Cost (Cost of Goods Sold)
This is the cost of the blank product that you're engraving. For example: - Blank powder-coated tumbler: $8-$15
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Wooden cutting board blank: $5-$12
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Keychain blank: $1-$3
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Coaster blank: $1-$2
This is the easiest cost to calculate—you just pay for the blank, so you know what it costs you.
2. Labor Cost (Your Time)
This is what you pay yourself for your time. This is where a lot of beginners go wrong—they don't put a value on their time. Even if this is just a side hustle, your time is worth something.
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Figure out what hourly wage you want to make. For most people starting a side hustle, $15-$25 per hour is a good starting point. If you're full-time and you have more experience, you can charge $25-$40+ per hour.
Then estimate how long it takes you to make each product: - Design time + setup time + laser time + finishing time = total time
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- Multiply total time by your hourly wage to get your labor cost.
For example, if a custom tumbler takes 15 minutes total (0.25 hours) and your hourly rate is $20, your labor cost is $5.
If you have a faster machine like the Tyvok P2 10W Galvo, your laser time is much shorter, which means your labor cost is lower. That's one of the advantages of upgrading to a faster machine—you can do more jobs per hour, which increases your profits.
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3. Overhead Costs
Overhead is all the other costs that you have to pay to run your business that aren't directly tied to one specific product. You need to allocate a portion of these costs to each product you make.
Common overhead costs for a laser engraving business:
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- Machine cost: Your laser engraver depreciates over time—you need to set aside money to replace it eventually. For example, if you paid $300 for your Tyvok A1 Mini and you expect it to last 3 years (about 1000 hours of use), that's $0.30 per hour of use.
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- Utilities: Electricity to run your machine and exhaust.
- Rent/workspace: Even if you work from home, you're using space that you could use for something else. You can allocate a small amount per job for this.
- Software and website: Monthly subscriptions for design software, e-commerce platform, hosting, etc.
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- Marketing and advertising: Cost of social media ads, business cards, etc.
- Shipping supplies: If you ship products, you need to include the cost of packaging, labels, etc.
- Insurance and business licenses: Any annual or monthly fees.
The easiest way to allocate overhead is to calculate your total monthly overhead, divide it by the number of hours you work per month, and then add that to your hourly rate.
For example, if your total overhead is $200 per month and you work 40 hours per month, that's another $5 per hour in overhead costs.
4. Platform Fees
If you sell on Etsy, Shopify, Facebook Marketplace, or another platform, they charge fees. These fees are usually 3-15% of your selling price, and you need to account for them in your pricing.
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Simple Formula for Calculating Your Minimum Price
Once you know all your costs, here's a simple formula to calculate your minimum price:
Material Cost + Labor Cost + Overhead Cost + Platform Fees = Total Cost
Then you need to add your profit markup. For most laser engraving products, a markup of 30-50% on top of your total cost is a good starting point. Some people use keystone pricing (double your total cost), which is also fine.
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Total Cost × (1 + Markup Percentage) = Selling Price
Let's do an example with a custom engraved tumbler: - Material cost (blank tumbler): $10
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Labor (15 minutes at $20/hour): $5
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Overhead (15 minutes at $5/hour): $1.25
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Platform fee (5% of selling price, we'll approximate here): $1
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Total cost: $17.25
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Markup (35%): $6.04
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Selling price: ~$23.29 → round to $24 or $25
That gives you a profitable price that covers all your costs and gives you profit. If you just charged $20 for the tumbler, you'd be making less than $3 profit for 15 minutes of work—that's not worth it.
Common Pricing Methods for Laser Engraving
There are a few different methods people use to price laser engraving products. Each has its pros and cons.
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1. Cost-Plus Pricing (What We Just Covered)
This is the most straightforward method. You calculate all your costs, add a markup for profit, and that's your price.
Pros:
- Guarantees that you cover all your costs and make a profit on every job
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Simple to calculate once you have your numbers
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Low risk—you won't lose money on jobs
Cons:
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Doesn't take into account what the market will bear—sometimes you can charge more than your cost-plus price
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Doesn't account for perceived value—some products are worth more to customers than just your cost
This is the best method for beginners to start with, because it ensures you don't underprice your work.
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2. Market Pricing
With market pricing, you look at what other sellers are charging for similar products, and you price yours similarly.
Pros:
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Simple—just check Etsy, Facebook, local craft fairs, and see what others charge
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Takes into account what customers are actually willing to pay
Cons:
- Many beginners underprice their products, so if you just copy them, you might end up underpricing too
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- Doesn't take into account your specific costs—if your costs are higher than the other seller's, you'll lose money
The best approach is to use cost-plus pricing to find your minimum price, then check the market. If the market price is higher than your minimum price, you can charge the market price. If the market price is lower than your minimum price, you either need to find a way to lower your costs or don't sell that product.
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3. Per-Inch Pricing for Custom Text/Logos
Some businesses price custom engraving by the inch: "Charge $1-$2 per inch of text." This is common for custom engraving where you're engraving on a customer-supplied item.
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This is a simple way to price for on-demand work like event engraving. If you're doing event engraving with a portable machine like the Tyvok A1 Mini or Tyvok P2, per-inch or per-item pricing is quick and easy for customers.
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4. Per-Item Pricing
This is where you set a fixed price for each type of product: "Custom engraved tumblers: $25, wooden coasters: $10 each, cutting boards: $40." This is what most sellers do when selling finished products online or at craft fairs.
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This is simple for customers—they know what the price is before they order. It's also simple for you because you don't have to calculate a custom price for every order.
Recommended Price Points for Popular Products in 2026
To give you a starting point, here are the common retail price points for popular laser engraved products in 2026. These are typical prices—your prices might be a bit higher or lower depending on your area and the quality of your products.
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Product Typical Retail Price Your Cost (approx) Profit Per Item
Custom engraved keychain $10-$15 $3-$5 $7-$10
Set of 4 wooden coasters $20-$30 $6-$10 $14-$20
Custom engraved wine glass $15-$25 $5-$8 $10-$17
Custom engraved powder-coated tumbler (20 oz) $25-$35 $10-$16 $15-$19
Personalized wedding favor (small) $5-$10 $1.50-$3 $3.50-$7
Custom engraved cutting board (small) $30-$45 $10-$15 $20-$30
Custom engraved cutting board (large) $45-$65 $15-$25 $30-$40
Personalized wooden sign (small) $25-$40 $8-$15 $17-$25
Personalized wooden sign (large) $40-$75 $15-$25 $25-$50
Pet ID tag $12-$20 $2-$4 $10-$16
Custom engraved phone case $20-$30 $6-$10 $14-$20
Personalized leather wallet $35-$50 $15-$25 $20-$25
As you can see, there's good profit margin on most products when you price them correctly. Even with a small machine like the Tyvok A1 Mini, you can make good money because your upfront investment is low.
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If you have a faster machine like the Tyvok P2 10W Galvo, you can do more jobs per hour, which increases your total profit per day because your labor cost per job is lower.
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Pricing for Customer-Supplied Items vs. Blanks You Provide
There's a difference between engraving customer-supplied items and engraving blanks that you provide.
Engraving Customer-Supplied Items:
When a customer brings their own item and just wants you to engrave it, you don't have the material cost, but you still have labor, overhead, and wear and tear on your machine.
Typical pricing for engraving customer-supplied items: - Small text/logo (under 2 inches): $10-$15
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Medium (2-4 inches): $15-$25
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Large (over 4 inches): $25-$35
Most shops have a minimum charge of $10-$15 for any custom engraving job, regardless of size. That covers your setup time—even a tiny job takes 10 minutes of your time for setup, so you need to charge accordingly.
Engraving Blanks You Provide:
This is what we covered earlier—you include the cost of the blank plus your labor, overhead, and profit. This is what you do when you sell finished products on Etsy or at craft fairs.
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How to Price On-Demand Event Engraving
If you're doing on-demand engraving at events like craft fairs, farmers markets, weddings, or corporate events, your pricing needs to be simple and easy to understand. Customers don't want to wait while you calculate a custom price.
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Most event engravers use simple per-item pricing: - Anything under 3 inches: $10
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3-5 inches: $15
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Over 5 inches: $20
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Or flat $15 per item for most things
If you have a fast galvo machine like the Tyvok P2 10W Galvo, you can do a lot of customers per hour at events, so even at $15 per item, you can make good money. Many event engravers make $300-$1000 in a single weekend doing on-demand engraving.
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Common Pricing Mistakes Beginners Make
Avoid these common mistakes that can kill your profit:
Mistake 1: Not Charging for Design Time
A lot of beginners give away design time for free. If a customer wants a custom design, that takes you time—you need to charge for it.
Solution: Charge a separate design fee for custom designs, or include it in your price. For example: "Custom design work: $15-$50 per hour, depending on complexity." Or add $5-$10 to the price of the product if it requires custom design work.
Mistake 2: Underestimating How Long Things Take
Beginners often underestimate how long a job will take. They only count the laser time, but they forget setup time, design time, cleanup time, and packaging time. All of that adds up.
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Solution: Track how long each type of job actually takes you. After you've done a few jobs, you'll have a better idea, and you can adjust your labor cost accordingly. When you're starting out, add a little extra time to your estimate—it's better to overestimate and finish early than to underestimate and end up working for nothing.
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Mistake 3: Competing on Price
A lot of beginners think they need to undercut everyone else's prices to get customers. This leads to prices that are too low to make any profit.
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Solution: Compete on quality and service, not on price. If you do high-quality work and provide good customer service, customers will pay a fair price. There's always someone willing to charge less than you—don't play that game.
Mistake 4: Forgetting About Platform Fees
If you sell on Etsy, Etsy charges 6.5% transaction fee plus advertising fees. If you don't account for these fees in your pricing, they eat into your profit.
Solution: Add the platform fee percentage to your markup. For example, if Etsy charges 6.5%, add 6.5% to your price to cover it.
Mistake 5: Not Increasing Prices Over Time
As you get faster and more experienced, and as your costs go up, you need to increase your prices. A lot of beginners keep their prices the same for years even as their costs increase.
Solution: Review your prices once a year and increase them if needed. As you get better at what you do and you build a reputation, you can charge more.
Mistake 6: Giving Discounts to Friends and Family (Too Often)
It's fine to give a small discount to friends and family, but if you give away too much work for free or at a huge discount, it eats into your profit and takes time away from paying customers.
Solution: Set a policy—maybe friends and family get 10-15% off, but not 50% off or free. You still need to cover your costs and make some profit.
Tips for Increasing Your Profits
Here are some tips to help you make more money with your laser engraving business:
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1. Speed Up Your Process with a Faster Machine
If you're doing a lot of engraving work, upgrading to a faster machine like the Tyvok P2 10W Galvo can dramatically increase how many jobs you can do per day. The faster you can complete jobs, the more money you can make. The extra speed pays for the machine quickly.
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2. Buy Blanks in Bulk
Buying your blanks in bulk reduces your material cost per unit, which increases your profit margin. Once you know which products sell well, buy a dozen or more at a time to get a better price.
3. Offer Rush Orders for Extra Money
If a customer needs their order done in 24 hours instead of your normal 3-5 day turnaround, charge a 25-50% rush fee. Most customers are willing to pay extra for fast turnaround, and this increases your average profit per order.
4. Focus on Higher-Value Products
Some products have much higher profit margins than others. Custom wedding items, personalized gifts, and corporate orders tend to have higher margins than cheap mass-produced items. Focus on higher-value products to increase your total profit.
5. Don't Compete on Price—Compete on Quality
As we mentioned earlier, don't try to be the cheapest. Instead, focus on doing high-quality work, providing great customer service, and charging a fair price. Customers who value quality will pay you what you're worth.
Frequently Asked Questions
Q: How much should I charge per hour for laser engraving?
A: Most beginner to intermediate laser engravers charge $30-$50 per hour. If you're just starting out, $25-$35 per hour is a good starting point. Experienced full-time engravers can charge $50-$100+ per hour for custom work.
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Q: What's the minimum I should charge for a laser engraving job?
A: Most shops have a minimum charge of $10-$15, regardless of how small the job is. This covers your setup time—even a tiny job takes 10 minutes of your time, so you need to charge at least enough to cover that.
Q: How much profit can you make with a laser engraving business?
A: It depends on how much time you put into it. Many people make $500-$2000 per month part-time with an entry-level machine like the Tyvok A1 Mini. Full-time businesses can make $5000-$10,000+ per month. The profit potential is there if you price correctly and market your products well.
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Q: Is laser engraving profitable in 2026?
A: Yes, laser engraving is still very profitable in 2026. There's strong demand for personalized custom products, and you can start with a relatively small investment (an entry-level machine like the Tyvok A1 Mini costs under $300). As long as you price your products correctly, you can make good money.
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Q: How do I price bulk orders for events or weddings?
A: For bulk orders (like 100 wedding favors), you can give a small volume discount because your setup time is spread over many units. Typically, you can discount each unit by 10-20% for bulk orders compared to single orders. You still make profit because you're doing a lot of units at once.
Q: My machine is cheap (like the Tyvok A1 Mini), should I charge less?
A: No! Your customers don't care what your machine cost—they care about the quality of the finished product. If you deliver a high-quality engraved product, you can charge the same as someone with a more expensive machine. The lower cost of your machine just means more profit for you.
Final Pricing Tips for Beginners
If you're just starting out, remember these key points: - Always cover all your costs: Material, labor, overhead, and fees. Don't forget anything. - Add a reasonable markup: You started this business to make money, so make sure you actually get paid.
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- Check the market: Make sure your prices are in the ballpark of what other sellers are charging. If your cost-plus price is lower than the market price, charge the market price—more profit for you.
- Don't be afraid to charge what you're worth: Your time and your skills are valuable. It's better to get fewer orders at a profitable price than a lot of orders at a price that doesn't make you any money.
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- Review and adjust: After you've been in business for a few months, review your prices and see what's working. If you're consistently booked up and you're barely making any profit, it's time to raise your prices.
👉 Learn more about Pros and Cons of galvo laser for business here
Whether you're just starting out with an entry-level machine like the Tyvok A1 Mini or you're scaling up with a production machine like the Tyvok P2 10W Galvo, these pricing principles will help you build a profitable business. The key is to be systematic about calculating your costs and don't underprice your work.
🛒 Check out the Tyvok A1 Mini here
Ready to start your laser engraving side hustle? The Tyvok A1 Mini is the perfect entry-level machine that lets you get started for under $300. When you're ready to scale up to faster production, the Tyvok P2 10W Galvo gives you galvo speed at an affordable price.
