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Profit Potential

In sandcarving, the profit potential varies, depending on how you choose to specialize. For example:

  • Low-end items include customized ceramic mugs, drinkware, small gift items, river rocks, etc. Product and labor costs for these items range from $2 per unit to $9 per unit. Wholesale selling prices range from $4 to $16, while retail selling prices range from $12 to $18. This implies a profit-per-unit range of $2 to $11.
Barware
  • Mid-range items include decorative products such as wedding sets, small trophies, awards, jade, starfire, clocks, pen sets, etc. Product and labor costs for these items range from $14 to $36 per unit. Wholesale selling prices range from $28 to $70, while retail selling prices range from $50 to $110. This implies a profit-per-unit range of $14 to $88.
Mid Range Glass
  • High-end items include larger trophies, crystal items, multi-stage carvings , architectural signage, shower doors, etc. In this category, the costs vary widely, from about $37 per unit up to $213 per unit. Wholesale selling prices can range from $55 to $440, while retail selling prices range from about $115 up to several hundred dollars per unit. The profit per unit ranges from $18 to $400.
Golf Award

Remember, a sandcarving business has relatively low start-up costs and requires no special technical skills.

Additional pricing considerations

On items brought in. If a client brings in the blank for a production job, you can use your production pricing formula. If the blank is a single-unit, assess a handling charge to recover some of the money you would have made on the blank.

Disclaimers. Ask your client to approve the carve design in writing before you begin. You should also always communicate a disclaimer that you bear no financial responsibility for circumstances beyond your control, such as if the client approves a design that contains a misspelling. Put this disclaimer in writing and have the client approve it along with the design.

Another issue to consider is replacement cost. Customers may bring items to you for engraving, and there is the possibility that those items can be damaged while in your care. Establish a system to address that possibility, such as:

  • Ask the customer to agree to a reasonable replacement cost in writing when the item is dropped off, or set a cap on the reimbursement amount you will provide to the customer if an item is damaged; have the customer sign to agree to your cap
Marketing | Pricing | Profit Potential
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