Jun 10, 2016 0 comment

“We are a job shop metal finisher with three automatic zimc plating lines, two automatic e-coat lines, and some other services.We are in the process of adding a 9000 square foot powder coating line within a building addition. Our customers are very excited and are starting to ask about pricing. We are getting many inquiries for quotation/pricing. I have a very good handle of what my costs will be, but I do not know what the current acceptable profit margins are for powder coating. Can you give me some idea as to what some pricing per mil square foot is right now based on a few standard powder types? I want to make sure that I am not going in to the market too strong or too weak. FYI: Our system has a ten stage washer with all RO water, two cleaning stages, many counterflow rinses, iron phosphate, chrome sealer, and micro-filtration of the cleaning stages. We will have a Nordson Cyclo-Kinetic booth and a spray to waste booth. The powder and the powder application equipment will be in an atmospherically controlled room. We will be able to do clear coat over our zinc plating, as well as use our e-coats as primers. Your help is greatly appreciated.”

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“There are no published profit margins for the powder coating industry. The adage of “charge what the market can bear” does apply to our industry as with any other industry. Good luck in selecting a price that your customer is willing to pay for the services that you provide. Most job shops are including other value-added services, such as assembly and packaging, to provide a one stop service approach to their customers. This ensures they are not readily shopped by other custom coaters competing for the same business. A rolled-up cost including other value added services can offer you some protection from a commodity marketplace.”

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