Universal Quoting Formula: Total Job Price = (Raw Material COGS + Machine Depreciation & Energy + Finishing Labor) / (1 - Target Margin %).
All variables calculate locally in real time. Standard commercial margins are 50%–65% for B2B contracts and 65%–80% for custom retail orders.
How to Quote Laser Cutting & Engraving Jobs for High Profitability
Under-quoting laser projects is the most frequent reason custom fabrication shops fail. Novice laser operators frequently charge only for the wooden sheet or acrylic blank, forgetting that vector cutting speeds, raster line density (DPI), nozzle air assist electricity, and mirror/lens maintenance are major cost drivers.
1. Calculating Precise Machine Run-Time
Laser job duration consists of two distinct mathematical components: Vector Cutting / Scoring and Raster Engraving.
- Vector Cutting Duration: Calculated by converting vector path length to millimeters and dividing by head travel speed:
Vector Cut Time (sec) = [Cut Length (inches) × 25.4] ÷ Cut Speed (mm/sec)
- Raster Engraving Duration: Engraving requires bidirectional line scanning. At 300 DPI (approx. 0.085mm line interval), the laser traverses the raster height thousands of times:
Engrave Time (sec) ≈ [Engrave Area (mm²) ÷ (Line Interval (mm) × Engrave Speed (mm/s))] × Acceleration Multiplier (1.25)
2. Laser Tube Amortization & Consumable Overhead
| Laser Technology | Lifespan (Hours) | Replacement Cost | Hourly Depreciation |
|---|---|---|---|
| Diode Laser Module (10W - 40W) | 8,000 - 10,000 hrs | $150 - $400 | $0.02 - $0.04 / hr |
| Glass CO2 Tube (40W - 80W) | 1,500 - 2,500 hrs | $300 - $650 | $0.20 - $0.35 / hr |
| RF Metal Waveguide CO2 (30W - 70W) | 15,000 - 25,000 hrs | $2,500 - $4,500 | $0.15 - $0.25 / hr |
| Fiber Laser Source (Raycus/IPG 30W) | 50,000 - 100,000 hrs | $1,200 - $2,800 | $0.03 - $0.05 / hr |
3. Why Setup Fees Protect Your Margin on Small Batches
Never start a custom engraving or cutting order without a fixed File Prep & Vector Setup Fee ($15 to $35). A customer asking for a single personalized cutting board requires 15 minutes of vector node alignment, text kerning, focal height positioning, and tape masking. Spreading a fixed setup fee across batch sizes ensures one-off orders remain profitable while large commercial orders automatically receive bulk volume discounts.