How do you price engraving work without underselling yourself?

The formula I use:

Price = (materials × 1.2) + (machine minutes × your machine rate) + (design/handling minutes × your labour rate) + packaging, then × 2 for retail.

• Materials × 1.2 covers scrap and offcuts. You will scrap some.
• Machine rate: take the machine cost plus consumables over its expected life, divide by realistic running hours, then double it. Mine works out around £0.40/minute for a mid-range machine. That number also stops you cheerfully accepting 90-minute jobs for £15.
• Labour rate is your actual rate, including the fifteen minutes of emails per custom order. Custom orders are 80% admin.
• × 2 for retail because wholesale exists and you want room to discount without losing money.

Then sanity-check against the market, but do not start from the market price and work backwards. That's how the whole category gets underpriced.

Add a minimum order value. Below about £12 the admin swallows the job whatever the maths says. Mine is £15 and it removed the most annoying 20% of enquiries overnight.

And charge for design separately, as a one-off setup fee. Then repeat orders of the same design are genuinely cheaper for them and much more profitable for you.

Ran my last month's orders through that formula. I was underpricing by about 35% on custom work and slightly overpricing on my standard tumblers. Reworked the whole list.