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TryOwning · Small manufacturer · Lesson 1
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Small manufacturer · 13 min

What it costs to make one more

Making the first one is expensive. Making the hundredth is cheap. Knowing the difference is how a small factory prices its work.

Your business

Pick the business you'll run

Each lesson uses your pick for its numbers. You can change it any time.

What do you make

Machine shop

Machine shops averaged 13.2 peoplecensus.gov ·2022 in 2022.

Wholesale bakery

Ingredients and packaging were 37.7%census.gov ·2022 of commercial bakeries' sales in 2022.

Cabinet shop

Cabinet makers averaged 16.7 peoplecensus.gov ·2022 in 2022.

Pick a business to start.

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Sources and every number (4 sources)

Sources

  • 2022 Economic Census, Manufacturing: Summary Statistics for the U.S., States, and Selected Geographies (table EC2231BASIC; NAICS 332710 machine shops, 311812 commercial bakeries, 337110 wood kitchen cabinet and countertop manufacturing, 31-33 all manufacturing) · U.S. Census Bureau, 2022
  • Occupational Employment and Wage Statistics, May 2025: national cross-industry estimates (carpenters, plumbers, machinists, bakers, cabinetmakers) · U.S. Bureau of Labor Statistics, 2025
  • Proto Labs, Inc. Form 10-K for the fiscal year ended December 31, 2025 · Proto Labs, Inc. (filed with the U.S. SEC), 2025
  • G.17 Industrial Production and Capacity Utilization, release of October 16, 2026 (capacity utilization for manufacturing, September 2026) · Board of Governors of the Federal Reserve System, 2026

Every number

  • 3 hoursexample (example number: Simplified example: a steel bracket made to order: programming the machine, fitting the holder and checking the first part.) · Simplified example: a steel bracket made to order: programming the machine, fitting the holder and checking the first part.
  • $95/hourexample (example number: Simplified example: a shop rate, an hour of a computer-run machine and the person running it, covering wages, benefits, the equipment, power and rent.) · Simplified example: a shop rate, an hour of a computer-run machine and the person running it, covering wages, benefits, the equipment, power and rent.
  • $285example (example number: Simplified example: a steel bracket made to order: the setup hours at the shop rate.) · Simplified example: a steel bracket made to order: the setup hours at the shop rate.
  • $3.20example (example number: Simplified example: a steel bracket made to order: the steel in one bracket.) · Simplified example: a steel bracket made to order: the steel in one bracket.
  • 6 minutesexample (example number: Simplified example: a steel bracket made to order: machine time for one bracket.) · Simplified example: a steel bracket made to order: machine time for one bracket.
  • $12.70example (example number: Simplified example: a steel bracket made to order: steel plus machine time for one more bracket.) · Simplified example: a steel bracket made to order: steel plus machine time for one more bracket.
  • $298example (example number: Simplified example: a steel bracket made to order: the setup plus one bracket's steel and machine time.) · Simplified example: a steel bracket made to order: the setup plus one bracket's steel and machine time.
  • 100 bracketsexample (example number: Simplified example: a steel bracket made to order: a run of a hundred.) · Simplified example: a steel bracket made to order: a run of a hundred.
  • $15.55example (example number: Simplified example: a steel bracket made to order: the setup spread over a hundred, plus one bracket's steel and machine time.) · Simplified example: a steel bracket made to order: the setup spread over a hundred, plus one bracket's steel and machine time.
  • 103 bracketsexample (example number: Simplified example: a steel bracket made to order: a hundred good ones plus the extra started for scrap.) · Simplified example: a steel bracket made to order: a hundred good ones plus the extra started for scrap.
  • 3%example (example number: Simplified example: a steel bracket made to order: extra pieces started for scrap, as a share of the run.) · Simplified example: a steel bracket made to order: extra pieces started for scrap, as a share of the run.
  • $330example (example number: Simplified example: a steel bracket made to order: steel for every piece started.) · Simplified example: a steel bracket made to order: steel for every piece started.
  • 10.3 hoursexample (example number: Simplified example: a steel bracket made to order: machine time for every piece started.) · Simplified example: a steel bracket made to order: machine time for every piece started.
  • $979example (example number: Simplified example: a steel bracket made to order: machine time at the shop rate.) · Simplified example: a steel bracket made to order: machine time at the shop rate.
  • $1,593example (example number: Simplified example: a steel bracket made to order: setup, steel and machine time added up.) · Simplified example: a steel bracket made to order: setup, steel and machine time added up.
  • $15.93example (example number: Simplified example: a steel bracket made to order: the run's cost divided by the good brackets.) · Simplified example: a steel bracket made to order: the run's cost divided by the good brackets.
  • 25 bracketsexample (example number: Simplified example: a steel bracket made to order: a small order.) · Simplified example: a steel bracket made to order: a small order.
  • $11.40example (example number: Simplified example: a steel bracket made to order: the setup divided by the small order.) · Simplified example: a steel bracket made to order: the setup divided by the small order.
  • $24.10example (example number: Simplified example: a steel bracket made to order: the setup's share plus one bracket's steel and machine time.) · Simplified example: a steel bracket made to order: the setup's share plus one bracket's steel and machine time.
  • 1.5 hoursexample (example number: Simplified example: dinner rolls for a grocery store: scaling the recipe, mixing, heating the oven and cleaning up after.) · Simplified example: dinner rolls for a grocery store: scaling the recipe, mixing, heating the oven and cleaning up after.
  • $45/hourexample (example number: Simplified example: a shop rate, an hour of an oven and mixer and the person running it, covering wages, benefits, the equipment, power and rent.) · Simplified example: a shop rate, an hour of an oven and mixer and the person running it, covering wages, benefits, the equipment, power and rent.
  • $67.50example (example number: Simplified example: dinner rolls for a grocery store: the setup hours at the shop rate.) · Simplified example: dinner rolls for a grocery store: the setup hours at the shop rate.
  • $2.10example (example number: Simplified example: dinner rolls for a grocery store: flour, butter, yeast and a bag for a dozen.) · Simplified example: dinner rolls for a grocery store: flour, butter, yeast and a bag for a dozen.
  • 4 minutesexample (example number: Simplified example: dinner rolls for a grocery store: shaping, baking and packing a dozen.) · Simplified example: dinner rolls for a grocery store: shaping, baking and packing a dozen.
  • $5.10example (example number: Simplified example: dinner rolls for a grocery store: ingredients plus time for one more dozen.) · Simplified example: dinner rolls for a grocery store: ingredients plus time for one more dozen.
  • $72.60example (example number: Simplified example: dinner rolls for a grocery store: the setup plus one dozen's ingredients and time.) · Simplified example: dinner rolls for a grocery store: the setup plus one dozen's ingredients and time.
  • 50 dozenexample (example number: Simplified example: dinner rolls for a grocery store: a batch of fifty dozen.) · Simplified example: dinner rolls for a grocery store: a batch of fifty dozen.
  • $6.45example (example number: Simplified example: dinner rolls for a grocery store: the setup spread over the batch, plus one dozen's ingredients and time.) · Simplified example: dinner rolls for a grocery store: the setup spread over the batch, plus one dozen's ingredients and time.
  • 52 dozenexample (example number: Simplified example: dinner rolls for a grocery store: fifty good dozen plus the extra for misshapes and burnt trays.) · Simplified example: dinner rolls for a grocery store: fifty good dozen plus the extra for misshapes and burnt trays.
  • 4%example (example number: Simplified example: dinner rolls for a grocery store: extra rolls made for scrap, as a share of the batch.) · Simplified example: dinner rolls for a grocery store: extra rolls made for scrap, as a share of the batch.
  • $109example (example number: Simplified example: dinner rolls for a grocery store: ingredients and bags for every dozen made.) · Simplified example: dinner rolls for a grocery store: ingredients and bags for every dozen made.
  • 208 minutesexample (example number: Simplified example: dinner rolls for a grocery store: time for every dozen made.) · Simplified example: dinner rolls for a grocery store: time for every dozen made.
  • $156example (example number: Simplified example: dinner rolls for a grocery store: that time at the shop rate.) · Simplified example: dinner rolls for a grocery store: that time at the shop rate.
  • $333example (example number: Simplified example: dinner rolls for a grocery store: setup, ingredients and time added up.) · Simplified example: dinner rolls for a grocery store: setup, ingredients and time added up.
  • $6.65example (example number: Simplified example: dinner rolls for a grocery store: the batch's cost divided by the good dozens.) · Simplified example: dinner rolls for a grocery store: the batch's cost divided by the good dozens.
  • 30 dozenexample (example number: Simplified example: dinner rolls for a grocery store: a small order.) · Simplified example: dinner rolls for a grocery store: a small order.
  • $2.25example (example number: Simplified example: dinner rolls for a grocery store: the setup divided by the small order.) · Simplified example: dinner rolls for a grocery store: the setup divided by the small order.
  • $7.35example (example number: Simplified example: dinner rolls for a grocery store: the setup's share plus one dozen's ingredients and time.) · Simplified example: dinner rolls for a grocery store: the setup's share plus one dozen's ingredients and time.
  • 6 hoursexample (example number: Simplified example: a kitchen cabinet box: programming the cutting machine, setting up the edge bander and building a test box.) · Simplified example: a kitchen cabinet box: programming the cutting machine, setting up the edge bander and building a test box.
  • $80/hourexample (example number: Simplified example: a shop rate, an hour of a cutting machine or bench and the person running it, covering wages, benefits, the equipment, power and rent.) · Simplified example: a shop rate, an hour of a cutting machine or bench and the person running it, covering wages, benefits, the equipment, power and rent.
  • $480example (example number: Simplified example: a kitchen cabinet box: the setup hours at the shop rate.) · Simplified example: a kitchen cabinet box: the setup hours at the shop rate.
  • $96example (example number: Simplified example: a kitchen cabinet box: plywood, edge tape and hardware for one box.) · Simplified example: a kitchen cabinet box: plywood, edge tape and hardware for one box.
  • 45 minutesexample (example number: Simplified example: a kitchen cabinet box: cutting, banding and assembling one box.) · Simplified example: a kitchen cabinet box: cutting, banding and assembling one box.
  • $156example (example number: Simplified example: a kitchen cabinet box: materials plus time for one more box.) · Simplified example: a kitchen cabinet box: materials plus time for one more box.
  • $636example (example number: Simplified example: a kitchen cabinet box: the setup plus one box's materials and time.) · Simplified example: a kitchen cabinet box: the setup plus one box's materials and time.
  • 20 boxesexample (example number: Simplified example: a kitchen cabinet box: a run of twenty.) · Simplified example: a kitchen cabinet box: a run of twenty.
  • $180example (example number: Simplified example: a kitchen cabinet box: the setup spread over the run, plus one box's materials and time.) · Simplified example: a kitchen cabinet box: the setup spread over the run, plus one box's materials and time.
  • 21 boxesexample (example number: Simplified example: a kitchen cabinet box: twenty good ones plus one extra for scrap.) · Simplified example: a kitchen cabinet box: twenty good ones plus one extra for scrap.
  • 5%example (example number: Simplified example: a kitchen cabinet box: extra boxes started for scrap, as a share of the run.) · Simplified example: a kitchen cabinet box: extra boxes started for scrap, as a share of the run.
  • $2,016example (example number: Simplified example: a kitchen cabinet box: materials for every box started.) · Simplified example: a kitchen cabinet box: materials for every box started.
  • 15.8 hoursexample (example number: Simplified example: a kitchen cabinet box: time for every box started.) · Simplified example: a kitchen cabinet box: time for every box started.
  • $1,260example (example number: Simplified example: a kitchen cabinet box: that time at the shop rate.) · Simplified example: a kitchen cabinet box: that time at the shop rate.
  • $3,756example (example number: Simplified example: a kitchen cabinet box: setup, materials and time added up.) · Simplified example: a kitchen cabinet box: setup, materials and time added up.
  • $188example (example number: Simplified example: a kitchen cabinet box: the run's cost divided by the good boxes.) · Simplified example: a kitchen cabinet box: the run's cost divided by the good boxes.
  • 8 boxesexample (example number: Simplified example: a kitchen cabinet box: a small order.) · Simplified example: a kitchen cabinet box: a small order.
  • $60example (example number: Simplified example: a kitchen cabinet box: the setup divided by the small order.) · Simplified example: a kitchen cabinet box: the setup divided by the small order.
  • $216example (example number: Simplified example: a kitchen cabinet box: the setup's share plus one box's materials and time.) · Simplified example: a kitchen cabinet box: the setup's share plus one box's materials and time.
  • $100example (example number: Simplified example: a hundred dollars of what the maker shipped.) · Simplified example: a hundred dollars of what the maker shipped.
  • 30.5%census.gov ·2022 · Worked out from the 2022 Economic Census: Materials, parts and packaging as a share of what machine shops shipped, 2022.
  • 30.4%census.gov ·2022 · Worked out from the 2022 Economic Census: Pay for everyone on the payroll as a share of what machine shops shipped, 2022.
  • 7.1%census.gov ·2022 · Worked out from the 2022 Economic Census: Benefits as a share of what machine shops shipped, 2022.
  • 32%census.gov ·2022 · Worked out from the 2022 Economic Census: Everything else, and profit (what's left after the three lines above) as a share of what machine shops shipped, 2022.
  • 5.6%census.gov ·2022 · Worked out from the 2022 Economic Census: Depreciation: machines and buildings wearing out as a share of what machine shops shipped, 2022.
  • 1.3%census.gov ·2022 · Worked out from the 2022 Economic Census: Fuel and electricity as a share of what machine shops shipped, 2022.
  • 2.2%census.gov ·2022 · Worked out from the 2022 Economic Census: Rent for buildings and equipment as a share of what machine shops shipped, 2022.
  • 13.2 peoplecensus.gov ·2022 · Worked out from the 2022 Economic Census: machine shops' employees divided by how many shops there were, 2022.
  • $2.6Mcensus.gov ·2022 · Worked out from the 2022 Economic Census: what machine shops shipped in 2022, divided by how many there were, rounded to the nearest thousand.
  • $30.50example (example number: Simplified example: machine shops' Census share applied to an example hundred dollars.) · Simplified example: machine shops' Census share applied to an example hundred dollars.
  • $30.40example (example number: Simplified example: machine shops' Census share applied to an example hundred dollars.) · Simplified example: machine shops' Census share applied to an example hundred dollars.
  • $7.10example (example number: Simplified example: machine shops' Census share applied to an example hundred dollars.) · Simplified example: machine shops' Census share applied to an example hundred dollars.
  • $32example (example number: Simplified example: machine shops' Census share applied to an example hundred dollars.) · Simplified example: machine shops' Census share applied to an example hundred dollars.
  • 37.7%census.gov ·2022 · Worked out from the 2022 Economic Census: Ingredients, packaging and supplies as a share of what commercial bakeries shipped, 2022.
  • 16.1%census.gov ·2022 · Worked out from the 2022 Economic Census: Pay for everyone on the payroll as a share of what commercial bakeries shipped, 2022.
  • 4.6%census.gov ·2022 · Worked out from the 2022 Economic Census: Benefits as a share of what commercial bakeries shipped, 2022.
  • 41.6%census.gov ·2022 · Worked out from the 2022 Economic Census: Everything else, and profit (what's left after the three lines above), including delivery and selling as a share of what commercial bakeries shipped, 2022.
  • 3%census.gov ·2022 · Worked out from the 2022 Economic Census: Depreciation: ovens, mixers and buildings wearing out as a share of what commercial bakeries shipped, 2022.
  • $37.70example (example number: Simplified example: commercial bakeries' Census share applied to an example hundred dollars.) · Simplified example: commercial bakeries' Census share applied to an example hundred dollars.
  • $16.10example (example number: Simplified example: commercial bakeries' Census share applied to an example hundred dollars.) · Simplified example: commercial bakeries' Census share applied to an example hundred dollars.
  • $4.60example (example number: Simplified example: commercial bakeries' Census share applied to an example hundred dollars.) · Simplified example: commercial bakeries' Census share applied to an example hundred dollars.
  • $41.60example (example number: Simplified example: commercial bakeries' Census share applied to an example hundred dollars.) · Simplified example: commercial bakeries' Census share applied to an example hundred dollars.
  • 38.1%census.gov ·2022 · Worked out from the 2022 Economic Census: Materials, parts and packaging as a share of what kitchen cabinet and countertop makers shipped, 2022.
  • 23.9%census.gov ·2022 · Worked out from the 2022 Economic Census: Pay for everyone on the payroll as a share of what kitchen cabinet and countertop makers shipped, 2022.
  • 5.1%census.gov ·2022 · Worked out from the 2022 Economic Census: Benefits as a share of what kitchen cabinet and countertop makers shipped, 2022.
  • 32.9%census.gov ·2022 · Worked out from the 2022 Economic Census: Everything else, and profit (what's left after the three lines above) as a share of what kitchen cabinet and countertop makers shipped, 2022.
  • 2%census.gov ·2022 · Worked out from the 2022 Economic Census: Depreciation: machines and buildings wearing out as a share of what kitchen cabinet and countertop makers shipped, 2022.
  • $38.10example (example number: Simplified example: cabinet makers' Census share applied to an example hundred dollars.) · Simplified example: cabinet makers' Census share applied to an example hundred dollars.
  • $23.90example (example number: Simplified example: cabinet makers' Census share applied to an example hundred dollars.) · Simplified example: cabinet makers' Census share applied to an example hundred dollars.
  • $5.10example (example number: Simplified example: cabinet makers' Census share applied to an example hundred dollars.) · Simplified example: cabinet makers' Census share applied to an example hundred dollars.
  • $32.90example (example number: Simplified example: cabinet makers' Census share applied to an example hundred dollars.) · Simplified example: cabinet makers' Census share applied to an example hundred dollars.
  • 53.5%census.gov ·2022 · Worked out from the 2022 Economic Census: Materials, parts and packaging as a share of what all US manufacturers shipped, 2022.
  • 11.5%census.gov ·2022 · Worked out from the 2022 Economic Census: Pay for everyone on the payroll as a share of what all US manufacturers shipped, 2022.
  • $28.24/hourbls.gov ·2025 · Median hourly wage of machinists in the US, all industries, May 2025.
  • $17.86/hourbls.gov ·2025 · Median hourly wage of bakers in the US, all industries, May 2025.
  • $22.44/hourbls.gov ·2025 · Median hourly wage of cabinetmakers and bench carpenters in the US, all industries, May 2025.
  • 500 bracketsexample (example number: Simplified example: five times the starting run, the most the lab allows.) · Simplified example: five times the starting run, the most the lab allows.
  • $75example (example number: Simplified example: the setup cut by about three quarters.) · Simplified example: the setup cut by about three quarters.
  • 6%example (example number: Simplified example: twice the starting scrap share.) · Simplified example: twice the starting scrap share.
  • 200 dozenexample (example number: Simplified example: four times the starting batch, the most the lab allows.) · Simplified example: four times the starting batch, the most the lab allows.
  • $15example (example number: Simplified example: the setup cut by about three quarters.) · Simplified example: the setup cut by about three quarters.
  • 8%example (example number: Simplified example: twice the starting scrap share.) · Simplified example: twice the starting scrap share.
  • 100 boxesexample (example number: Simplified example: five times the starting run, the most the lab allows.) · Simplified example: five times the starting run, the most the lab allows.
  • $120example (example number: Simplified example: the setup cut by three quarters.) · Simplified example: the setup cut by three quarters.
  • 10%example (example number: Simplified example: twice the starting scrap share.) · Simplified example: twice the starting scrap share.
  • 48,415sec.gov ·2025 · Protolabs, fiscal 2025: unique customer contacts (people who placed an order that shipped) in 2025.
  • 44.5%sec.gov ·2025 · Protolabs, fiscal 2025: gross margin.
  • $533.1Msec.gov ·2025 · Protolabs, fiscal 2025: total revenue.
  • 75.9%federalreserve.gov ·2026 · Capacity utilization for US manufacturing in September 2026, from the Federal Reserve's October 2026 release (seasonally adjusted; September is preliminary and gets revised).
  • 2.3 pointsfederalreserve.gov ·2026 · How far the September 2026 manufacturing rate (preliminary, from the October 2026 release) was below its long-run average, 1972 to 2025.
  • 10%example (example number: Simplified example: how far below your usual price the big customer wants to pay.) · Simplified example: how far below your usual price the big customer wants to pay.
  • 75%example (example number: Simplified example: how much of your machine time is already booked this month.) · Simplified example: how much of your machine time is already booked this month.
  • 3%example (example number: Simplified example: the scrap share on your usual runs.) · Simplified example: the scrap share on your usual runs.
  • 8%example (example number: Simplified example: the scrap share on the rushed big runs.) · Simplified example: the scrap share on the rushed big runs.
  • 9%example (example number: Simplified example: the scrap share on the rushed big batches.) · Simplified example: the scrap share on the rushed big batches.
  • 10%example (example number: Simplified example: the scrap share on the rushed big runs.) · Simplified example: the scrap share on the rushed big runs.
  • 25%example (example number: Simplified example: a starting profit target, as a share of the price.) · Simplified example: a starting profit target, as a share of the price.
  • 25 bracketsexample (example number: Simplified example: a small order.) · Simplified example: a small order.
  • 500 bracketsexample (example number: Simplified example: a big order.) · Simplified example: a big order.
  • 10 dozenexample (example number: Simplified example: a small order.) · Simplified example: a small order.
  • 200 dozenexample (example number: Simplified example: a big order.) · Simplified example: a big order.
  • 4 boxesexample (example number: Simplified example: a small order.) · Simplified example: a small order.
  • 60 boxesexample (example number: Simplified example: a big order.) · Simplified example: a big order.
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