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Markups & Profit Margins

Configure your markup percentages and failure rate adjustments

Overview

Markups and margins ensure your business is profitable after covering all costs, overhead, and potential losses from failed prints. These settings allow you to build healthy profit margins into your pricing.

Filament Markup Multiplier

What Is the Filament Markup?

A multiplier applied to your raw filament cost. The default is 2.7x, meaning you charge 2.7 times what you paid for the material.

Example Calculation:
• Filament cost: $20/kg
• Print uses: 100g (0.1kg)
• Base material cost: $2.00
• Markup: 2.7x
• Charged to customer: $5.40

Why 2.7x?

This industry-standard multiplier accounts for:

  • Material Waste: Support structures, purging, failed prints (~15-20%)
  • Storage Costs: Proper humidity control, organization
  • Inventory Management: Time spent tracking and ordering
  • Material Profit: Reasonable margin on materials

When to Adjust

Increase markup (3x - 4x) for:

  • • Specialty filaments (carbon fiber, flexible)
  • • Expensive materials (PEEK, PC, PA)
  • • Hard-to-source or imported materials
  • • Materials requiring special storage

Decrease markup (2x - 2.5x) for:

  • • Bulk orders using same material
  • • High-volume customers
  • • Common materials (basic PLA, PETG)
  • • Competitive pricing situations

General Markup Percentage

What Is the General Markup?

A percentage added to your total costs after calculating materials, labor, electricity, and depreciation. The default is 50%.

Example Calculation:
• Total base costs: $30.00
• General markup: 50%
• Markup amount: $30 × 0.50 = $15
• Subtotal after markup: $45.00

What Does It Cover?

  • Overhead: Rent, utilities, insurance, software subscriptions
  • Business Operations: Marketing, customer service, accounting
  • Maintenance: Regular printer maintenance, repairs, upgrades
  • Profit: Your actual take-home earnings
  • Growth Capital: Funds for expanding your business

Markup Guidelines

Hobbyist/Side Business20% - 35%
Small Business40% - 60%
Full-Time Professional50% - 75%
Premium/Specialized Service75% - 100%+

Important: Don't be afraid to charge appropriate markups. Your expertise, equipment, and service have real value.

Failure Rate Adjustment

What Is the Failure Rate?

A percentage that protects you against prints that fail and need to be redone. The default is 10%, which means your final price is increased to account for a 10% failure rate.

Calculation Method:
• Subtotal with markup: $45.00
• Failure rate: 10%
• Formula: $45 ÷ (1 - 0.10) = $45 ÷ 0.90
• Final price: $50.00
The failure adjustment of $5.00 ensures that if 1 in 10 prints fails, you can afford to reprint it for free.

Why Include Failure Rate?

Even experienced operators have prints fail. This adjustment ensures you're covered when:

  • First Layer Fails: Adhesion issues, bed leveling problems
  • Mid-Print Failures: Clogs, power outages, spaghetti
  • Quality Issues: Warping, layer separation, defects
  • Client Rejections: Dimensional accuracy, color issues

Setting Your Rate

Expert operators (reliable setup)5% - 8%
Experienced (standard materials)8% - 12%
Beginners or difficult prints12% - 20%
Experimental/new materials15% - 25%

Tip: Track your actual failure rate over time and adjust this setting accordingly. Be honest with yourself about how often prints fail.

Complete Calculation Flow

How Everything Works Together

Step 1: Calculate Base Costs
• Material cost (with filament markup)
• Electricity cost
• Depreciation cost
• Post-processing labor
• Preparation labor
Step 2: Apply General Markup
Subtotal = Base Costs × (1 + General Markup %)
Step 3: Apply Failure Rate
Final Price = Subtotal ÷ (1 - Failure Rate %)
Example: $45 ÷ (1 - 0.10) = $45 ÷ 0.90 = $50.00
Final Result
This is your recommended selling price that covers all costs, provides profit, and protects against failures.

Best Practices

Review Regularly

Check your actual failure rates and profitability quarterly. Adjust markups as your costs change.

Be Consistent

Use the same markups for similar jobs. This creates predictable pricing for you and your clients.

Save as Presets

Create presets with different markup strategies for different client types or job categories.

Don't Compete on Price Alone

Maintain healthy markups. Compete on quality, reliability, and service instead of racing to the bottom.

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