How Do I Price My Plastic Manufacturing Services?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 14
- 2 min read
Pricing your plastic manufacturing services correctly is essential for profitability and competitiveness. At Wexford Insurance, we understand that pricing impacts not only your revenue but also your ability to cover operational costs and protect your business with the right insurance.
This guide will help you develop a pricing strategy that reflects your costs, market demand, and value proposition.
Why Pricing Strategy Matters
Underpricing can lead to losses, while overpricing may drive customers away. A well-structured pricing model ensures sustainable growth and positions your business as a reliable partner in the plastic manufacturing industry.
Key Factors to Consider When Pricing Plastic Manufacturing Services
Include:
Raw materials (resins, additives)
Labor costs
Machinery maintenance
Utilities and overhead
2. Factor in Equipment and Depreciation
High-value machines like injection molding and extrusion equipment should be accounted for in your pricing model.
3. Include Compliance and Safety Costs
Meeting OSHA standards and environmental regulations adds to your operating expenses.
Read more: OSHA Plastics Industry Standards
4. Add Insurance Costs
Insurance protects your business from risks like equipment breakdown, fire, and liability claims. Common policies include:
5. Research Market Rates
Compare your pricing with competitors offering similar services. Consider regional demand and industry benchmarks.
6. Decide on Pricing Model
Options include:
Cost-plus pricing: Add a markup to your production cost.
Value-based pricing: Price based on perceived value to the customer.
Tiered pricing: Offer different packages for varying service levels.
7. Account for Volume Discounts
Large orders often justify lower per-unit pricing, helping you secure long-term contracts.
Final Thoughts
Pricing your plastic manufacturing services requires a balance between covering costs and remaining competitive. Don’t forget to include insurance expenses in your pricing strategy—it’s a critical part of protecting your business. At Wexford Insurance, we specialize in tailored coverage for plastic manufacturers.
Contact us today to get a quote and safeguard your operations.