Letter Material Cost is an advanced pricing method that calculates costs based on the actual amount of material needed to cut your letters. Instead of charging a fixed price per letter, this feature traces the exact cutting path of each character and multiplies that length by your material cost per centimetre. This ensures you charge customers precisely for the material used, making your pricing more accurate and profitable.
Key Benefits:
Accurate pricing: Customers pay for exactly the material their design uses
Font-sensitive pricing: Complex decorative fonts cost more than simple fonts
Flexible pricing tiers: Set different material costs based on sign dimensions
Real-time calculations: Prices update instantly as customers change their text or fonts
Determining Appropriate Material Costs
Understanding Material Usage
The system calculates the "midline path" of each letter - essentially the centreline that your cutting machine follows. This provides an accurate measurement of material consumption regardless of font style.
Factor in Your Costs
When setting your price per centimetre, include:
Raw material cost (the actual cost of your vinyl, metal, etc.)
Machine time (cutting/machining time per centimetre)
Waste factor (typically 10-20% extra for material waste)
Profit margin (your desired markup)
Example calculation:
Material cost: $0.20 per cm
Machine time: $0.10 per cm
Waste factor: $0.04 per cm
Profit margin: $0.18 per cm (50% markup)
Total price per cm: $0.52
Common Use Cases and When to Choose Letter Material Cost
Choose Letter Material Cost When:
Font complexity varies significantly in your projects
You offer multiple material types with different costs
Customers frequently change text length and styling
You need precise material cost tracking for profitability
Your cutting machine charges are based on actual cutting time
Use Fixed Cost Per Letter Instead When:
Material usage is consistent regardless of font
You prefer simplified pricing for customer understanding
Your business model is based on per-character pricing
Setup costs are more significant than material costs
Conversion formulas - converting from metric to imperial systems.
Here are some examples when receiving prices in meters or feet from your manufacturers.
Conversion for meter
The cost is $20 per meter.
Calculation:
20 / 100 = $0.20per centimeter.Conversion for feet
The cost is $15 per foot.
Calculation:
15 / 30.48 = $0.49per centimeter.~ rounded to two decimal places
What if I receive the average cost per letter from my supplier?
Then it's strongly advised to use our simple letter model instead of the advanced letter option. However, we have created an article to help you determine the material cost using an average letter price; please follow this article.