Stop Charging by Machine Time

One thing I hear all the time in maker groups is that you should price your work based on machine time.

Maybe that made sense years ago.

Today?

I think it's one of the worst ways to price a product.

Here's why.

Let's say you and I both make the exact same leather patch.

Mine takes 15 minutes on my laser.

Yours takes 1 minute because you invested in a faster machine.

Now what?

Does that mean your patch is only worth one-fifteenth of mine?

Of course not.

If anything, it means you made a better investment than I did.

The customer is getting the same finished product either way.

They aren't paying for laser runtime.

They're paying for the patch.

That's an important distinction.

Technology Changes Faster Than Pricing Advice

The problem with machine-time pricing is that equipment isn't equal anymore.

Some shops are running entry-level hobby lasers.

Others have industrial CO₂ systems.

Some use galvo lasers.

Others have automation, conveyors, autofocus, cameras, or multiple machines running at once.

A job that takes one shop twenty minutes might take another shop two.

Nothing about the finished product changed.

Only the equipment did.

So why should the selling price be completely different?

The Customer Doesn't Care

I've never had someone call and ask,

"How many minutes will your laser spend making my patch?"

They want to know:

• Will it look good?

• Will it last?

• Can you get it done on time?

• Is the price fair?

That's it.

Nobody is buying laser time.

They're buying results.

Faster Equipment Should Make You More Profitable

Think about any other business.

If a carpenter buys better tools and builds cabinets twice as fast, nobody expects him to cut his prices in half.

If a restaurant installs a faster oven, customers don't suddenly expect cheaper meals.

Businesses invest in equipment so they can produce more, reduce lead times, and make more money.

Why should our industry be any different?

Buying a faster laser isn't supposed to lower the value of your work.

It's supposed to increase the return on your investment.

Here's Where Machine-Time Pricing Falls Apart

The logic actually rewards inefficiency.

The slower your machine...

...the higher your price becomes.

Read that again.

Two shops can produce nearly identical products, but the one with slower equipment somehow justifies charging more because the laser ran longer.

That doesn't make much sense.

Your production speed isn't what determines value.

The market does.

Price the Product

Your pricing should reflect the complete picture.

• Material cost

• Labor

• Packaging

• Shipping supplies

• Overhead

• Customer service

• Marketing

• Equipment replacement

• Profit

Machine time can absolutely help you understand your shop.

It's useful for scheduling, planning capacity, or figuring out operating costs.

But it shouldn't be the thing deciding what your customer pays.

The Real Goal

When you invest in faster equipment, the reward isn't cheaper products.

The reward is that you can produce more products.

Instead of making four patches an hour, maybe now you can make sixty.

Instead of making customers wait two weeks, you ship tomorrow.

Instead of turning work away, you can take on larger orders.

That's where the money is.

Final Thoughts

I think machine time has become one of those ideas that's been repeated for so long that people stopped questioning it.

The reality is simple.

A product isn't worth more because your machine is slower.

And it isn't worth less because someone invested in better equipment.

The customer doesn't buy your production process.

They buy the finished product.

Price accordingly.