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Engraving for profit
Peter Kettle from Roland DG presents an introduction to the engraving market and explains how to make it work for you
Published:  31 October, 2008

Let's cut to the chase. Adding an engraving service to your business is going to cost you, and you are only going to do it if you can see it is going to make you money.

There are two areas in which adding engraving to your service portfolio will increase your profits: 1. To increase your services to existing customers; and 2. To increase your customer base by diversifying your markets.

In order to explore the potential of these two areas, it is important to understand the different categories of engraving:

  • General signs
  • Industrial engraving
  • Corporate gifts/awards
General signs is the heading your existing customers will fall under. This would include architectural signs, information panels, slat systems and brass plaques.

Industrial engraving could be a new market. I would classify industrial engraving to be the production of labels or panels fitted to machinery and equipment, such as control panels.

Corporate gifts/awards will be appealing to both new and existing customers. The incentive industry is massive and the profit potential is large, due to the fact that you make money on both providing the item and the engraving.

Examples of typical charges - general signs

Example one: - modular signs

A professional modular sign system, constructed from satin anodised aluminium. They can accept individually engraved strips or can be engraved directly. The strips are available in a wide range of surface colours. Once engraved, the core colour is exposed. When engraving the aluminium slats directly, the lettering can be easily colour-filled.

Example two: - brass plaques

There are two reasons why anyone chooses an engraved sign over any other process:

1. Longevity

2. Perceived value

Solid brass plaques ooze quality, prestige and durability, bestowing on the owner kudos - respectability and stability.

Example three: - lapel badges

They may be small, but there are many business based on selling just badges. And the great thing about badges is that you get regular orders from each customer. New staff, lost badges, exhibitions, damaged fixings - some organisations will buy their own machines just to produce their badges in-house.

Example four: - control panels

Industrial engraving is big business and will reward you by increasing your customer base. The same customer that buys control panels will also buy warning and hazard signs, directional signs and machine labels.

Example five: - gifts

The promotions market is a thriving and expanding business. It is dominated by companies who ‘farm out' the work, acting as go-betweens for the client and the producer. The competitive edge, therefore, is easily attained.

This is the ‘double-wammy,' you profit from both the product and the engraving. The engraving can really be seen as a means to an end to sell the quantity of gifts.

Charging

Engraving, much like signmaking, is a minefield when it comes to pricing. Most companies look at the material, then the amount of work required, then the size of the customer's wallet. They then think of a number, double it, feel guilty, knock a bit off and then throw it at the client.

There is a better way. Most jobs can be calculated using a relatively simple formula:

  • Minimum charge - to cover the time taken to set up the job.
  • Origination charge - to cover the time required to create any logos.
  • The size of the job - to account for material cost.
  • The amount to be engraved - to calculate the time required to complete the job.
Your customers

The simplest way to begin profitably with engraving is to let your existing customers know. The chances are they already have a need, which is being serviced elsewhere. And if they don't have a need it can be cultivated.

Before you start offering a service, your first engraving work should be samples for your showroom. Choose these carefully. Make sure you only select ranges that are relatively simple to engrave, but also appropriate to your target market. Modular or slatted systems are essential. Door tracks, desk plate holders, etc are great ways in which your customers can enhance the appearance of their offices. Brass plaques are a must. Key fobs and badges are also essential. Corporate gifts will always attract attention - so long as the lighting is adequate.

Once you have produced your own samples and now understand engraving, it's time to shout about it. Every customer that comes to your showroom should go away with an engraved sample. This could be a business card holder, key ring, badge, anything which they will use and not lose in a drawer. Your customer base should then be mailed.  Samples are the key to success. Most customers will only recognise a good idea when they see it.

The Engraving Markets

Just like the sign industry, the engraving market is extremely diverse. To start you off, the Yellow Pages lists all the typical markets alphabetically. If you can get a copy, you'll be doing yourself a favour:

So, which are the top markets to try?

I would always suggest you start by capitalising on your existing customer base. These are the easiest customers for you to approach because they know you and the quality of service you provide. After that, look at:

  1. Hotels. Hotels can be particularly rewarding. A good contract for a hotel refurbishment could pay for your machine. They will need reception signs, events boards, directional signs, door numbers and names, restaurant table numbers, floor level indicators and key fobs.
  2. Control Panel Manufacturers. Any manufacturing company which produces equipment with any form of controller, will require a control panel. These, of course, are not always engraved, but there are enough out there which are. These could be small, single labels, or large panels.
  3. Professionals. This would include accountants, solicitors, doctors, dentists, consultants and financial institutions. They all need brass plates. Surprisingly, no one has ever targeted these professionals directly. They all have magazines for their professions. Why not design a generic plaque, with separate partner strips screwed underneath, all mounted on a single backing board. You could offer the company a fixed rate annual contract to maintain and update.
  4. Corporate Gifts. Corporate gifts and incentive awards is a very lucrative sector. The items are generally inexpensive, but benefit from a high perceived value. What will cost you £3.00 will be in the shops for £10.00 - and, of course, your customer will recognise the value of engraving, so they'll expect to pay at least £12.95. This is usually a medium-to-high volume product, with orders ranging from 100 to 10,000 pieces. Pick your target market locally or nationally, depending on the speed of service you are prepared to offer.
Can I do it ?

A lot of people are put off engraving because they feel it is too technical, too skilled. You've got all sorts of cutters to contend with, material knowledge, not forgetting the mess.

But like signmaking, you can make engraving as simple, or as complicated as you like.

Just like cutting vinyl

We use vectored images and text to design our work - just like vinyl cutting. The only difference is we need to apply tool paths, but that is an automatic function within the software. As for cutters, you can get away with using the same type of cutter on practically any material. So, all you need to do is keep a range of tip sizes. Like felt-tip pens, cutters can be ground to any size, the bigger the letter, the bigger the required cutter. You can't use a big cutter on little letters, because you'll lose the centre of the letters.

All you need to know about materials is that you engrave harder materials slowly. Some materials, such as aluminium and steel, require a cutting oil to lubricate the cut. And you can extract the mess (swarf) directly front the surface.

Software

Whatever software you are using, the chances are it will also run your engraving machine. Here is a list of popular programs which support engravers. In most cases, an engraving module may be required. Contact your software supplier to confirm your needs.

Sharing the workshop

Although you can extract the swarf during the engraving process, inevitably some dust/swarf will remain. Therefore, it is not wise to position your engraver directly next to your printing machine. However, it will comfortably share the workshop. After all, you're probably making more mess cutting foam board and aluminium extrusions. Noise level on Roland machines is relatively low, with a maximum no-load level of 75dB.

The learning curve

Under instruction, you will be engraving within 30 minutes. Signmakers have the huge advantage of understanding the software already. You will need to learn about:

  • Tool-pathing, an automated software function
  • How fast to engrave different materials
  • How deep to engrave
  • What size cutter to use
  • Choosing to engrave with/without a nosecone
After the first day, you will have a good understanding. But the best way is to learn by experience. Use the samples you need for your showroom as test jobs.

Two weeks is my guess. Two hours a day for two weeks. You won't know everything, but you'll be competent. But, just like signmaking, you'll spend the rest of your working life refining and improving.

What will you need?

The first thing you'll need is an engraving machine and adequate software. You may look to invest in ancillary machines, such as saws, bevellers and cutter grinders. These are essential tools when looking to develop a self-contained engraving business. From then on, it is stocks of materials. Most suppliers offer next day delivery for engravable products, apart from corporate gifts.

Materials

There is a massive range of engraving materials available today. The most popular materials are:

  • Flexible laminates - heat bendable and impact resistant. Available as either 2 or 3-ply. This range can be broken down into:
                 - Micro. Thin surface. Broad colour range. 
                 - Exterior laminate. UV stable colours.
                 - Interior laminate. More durable than micro.
  • Rigid laminates - 3-ply gloss finish, exterior grade. Tough but brittle. Commonly used in industrial engraving. Better reaction to temperature, and chemicals.
  • Engravers brass - CZ120 free-milling brass. Requires no lubrication.
  • Anodised aluminium - satin finished natural colour. Ideal low maintenance material.
This information was taken from Roland DG's Signmakers Guide to Engraving for Profit. For more information or to obtain a copy, call 0845 230 9060 or go to: http://www.rolanddg.co.uk/







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