I will be negotiating a deal with a buisness to turn 60 to 80 pens per month for promotional purposes. The style of pen will be the Slim Line. Materials will cost $2.69. How much would you sell each pen for? It is a small business so I do not want to over charge them, and I expect repeat business.
Price for promotional pens.
- Thread starter Birdman
- Start date
Signed-In Members Don't See This Ad
- Status
Signed-In Members Don't See This Ad
timdaleiden
Member
I guess it really depends on you. Think about sandpaper, kit, wood, electricity, time, finish, wear on your lathe, etc.
jrc
Member
I charge $12.00 per pen not counting laser engraving and packaging.
With numbers like that and not using really expensive or exotic woods I would probably keep my price no higher than $12.00-$15.00. Of course a lot depends on the area you live in... Here in Western MD farm country I can not get the prices for pens that I could get if I sold them in Baltimore or DC... You local economy is going to be a big factor.. If you mark up $10.00/pen you are looking at $6-800 a month.. not a bad haul... wish I could find a market like that.. of course you need to be able to turn quickly and not get tired of turning pens.. LOL
Daniel
Member
My formula is materials times three pluss my labor. the materials would bring the price to $8.07 per pen. then you need to decide what you want per hour for making them. I generally go low on this if I am slow or trying new things. But production work will speed things up greatly.
so say you go with $20.00 per hour and can make 4 per hour. this leaves the final price at $13.07 per pen. remember time on a pen is not only lathe time. it is drilling,glueing, turning, finishing, assembly, packaging, and shipping.
in a situation like this I would also give a discount for a large order, repeat customer etc. something in the area of 20%. leaving the price per pen a little over $10.00 each.
so say you go with $20.00 per hour and can make 4 per hour. this leaves the final price at $13.07 per pen. remember time on a pen is not only lathe time. it is drilling,glueing, turning, finishing, assembly, packaging, and shipping.
in a situation like this I would also give a discount for a large order, repeat customer etc. something in the area of 20%. leaving the price per pen a little over $10.00 each.
G
Guest
Guest
Daniel-
How are you doing 4 per hour?
What type of finish are you using?CA?
I'm doing good to get 4 per day!
How are you doing 4 per hour?
What type of finish are you using?CA?
I'm doing good to get 4 per day!
patrick_1853
Member
I hate to be the pesimistic but this seems like a way to get quickly burnt out on turning pens. At the same time, a nice chunk of profit may change your mind on that 
Patrick
Patrick
This is has been a recurring question on these discussion forums; but I have yet to read a message from someone who actually accepted the challenge and made the promotional pens in large quantities. It would be interesting to know how they did.
The questions have always had a lot replies describing the merits and pitfalls of doing promotional pens for a local business. Look through the archives here and on the Yahoo pen guoup.
Besides the problem of taking the fun out of making pens by turning penturning into a business, there is the problem of price. We can buy pens from China in lots of 100 for about $4 apiece, including engraving. Double that price to cover shipping, handling, and profit and the supplier of promotional items will provide the pens to the business for about $8. If you can compete with that price, or have someone who is willing to pay more, you are in business.
My general advice would be that, if you have to ask the question, you are not yet ready to go commercial with your penturning.
The questions have always had a lot replies describing the merits and pitfalls of doing promotional pens for a local business. Look through the archives here and on the Yahoo pen guoup.
Besides the problem of taking the fun out of making pens by turning penturning into a business, there is the problem of price. We can buy pens from China in lots of 100 for about $4 apiece, including engraving. Double that price to cover shipping, handling, and profit and the supplier of promotional items will provide the pens to the business for about $8. If you can compete with that price, or have someone who is willing to pay more, you are in business.
My general advice would be that, if you have to ask the question, you are not yet ready to go commercial with your penturning.
Bev Polmanteer
Member
I agree with Russ. Another point is "don't underprice" your work. It looks bad for all of us if some yahoo comes over to our booth with a nice turned pen and says "I got this from --- --- for $10 and you want $30"! That's when I get really aggravated!
G
Guest
Guest
Bev=
Your reply reminded me of a site I ran into the other day while looking for pen boxes.
Click on this link.
I might buy them just to get the boxes and parts.
http://www.ggwholesale.com/ropenandpese.html
Your reply reminded me of a site I ran into the other day while looking for pen boxes.
Click on this link.
I might buy them just to get the boxes and parts.
http://www.ggwholesale.com/ropenandpese.html
melogic
Member
I agree with Russ and Bev. Another thing I think we tend to forget is that these are custom hand made writing instruments. They are not just another pen, no matter how many someone wants to purchase. I am in the middle of turning 40 or so for my church. They have a few church pews that are being replaced and I'm turning pens from the old ones. I'm selling them to the people for less than what I would sell at a craft show, but I still have to cover cost. As someone else said earlier, don't under price yourself.
Bev Polmanteer
Member
Eagle, that site makes me SICK!
jrc
Member
I have done promotional pens for non profect wood related groups from the begining. I get orders from 20 to 200 at a time and the price is always $12.00 each no matter the number and there happy to pay it. I have sold about 2000 pens to these groups. The way I look at it is every pen is a new pen and it's alot better than working outside in the hot or very cold weather.
Daniel
Member
I don't do alot of production turning, I have had a couple of orders for 20 pens or more, all the same style and material. Also I have made 135 pens for the FPP. that being my experience. I have found that by mass cutting, drilling glueing, etc it cuts the time per item way down. I can drill 200 half blanks in just plain old run of the mill woods in about 15 minutes. there is only one set up for the drilling vice and it is all repatition from there.
as for the burn out issue. this is a real danger. there is little to no creativity in producing mass numbers of pens.
as for under pricing. I have had a better solution suggested to me in the past for volume sales that still keeps the price up where these items deserve to be. that is promoting them as corporate gift items. people sucha as doctors, attourneys, real estate brokers, and many others will buy them in quantity as closing gifts etc.
in fact most corporations have catagories for there clients such as $20.00- $50.00, $50.00- $100.00. and there are looking for gifts that cost in that ranger for there various clients. A real life example is my father. he is in a catagory of up to $2000.00 with some vendors he works with. so don't sell yourself short. offer a wide variety of price ranges. Large companies give expensive pens away at every Board meeting. they provide a bound note pad (Leather) and a parker pen at every seat. Think dupont would like a gross of corian pens for giving at there board meetings? they would not bat an eye at paying even $100.00 a piece for them either. what about corn cob pens for the Iowa corn growers association. the list becomes endless.
- Status