Engraving Business Overview

An engraving business provides customization services by cutting or carving designs, text, and patterns into various materials, including metal, wood, glass, plastic, and stone. Common projects include personalizing gifts, creating awards and trophies, making identification tags, customizing electronics, and producing industrial markings for machinery and tools.

These businesses use different technologies and techniques, from traditional hand engraving tools to modern laser and computerized machines. The work ranges from simple text engravings on jewelry to intricate designs on industrial equipment. Small engraving businesses often start with one type of engraving service and expand their capabilities as they grow.

There are several models businesses operate in this industry, the most common including:

• Retail Location Model: A physical store that offers walk-in engraving services for customers bringing in their items or purchasing products to be engraved
• Mobile Service Model: Traveling engraving services that bring equipment to events, trade shows, or business locations
• Online Custom Model: Web-based businesses that receive orders virtually and ship completed items to customers

Related: Checklist to Start a Business

How Do Engraving Businesses Make Money?

Engraving businesses earn their primary income through service fees for personalization work. The pricing structure typically includes a base fee plus additional charges based on several factors, including the time needed to complete the project, the engraved material type, the engraving area’s size, and the design’s complexity.

For example, a simple text engraving on a metal plate might cost $20-30, while an intricate design on multiple items could cost hundreds of dollars. Businesses often charge setup fees for first-time orders and offer volume discounts for bulk projects.

Additional revenue streams these businesses might develop include:

• Product Sales: Selling items like trophies, plaques, jewelry, and gift items that can be personalized through engraving
• Design Services: Creating custom artwork and patterns for engraving projects
• Material Supply: Providing specialized materials suited for engraving to other businesses or customers

Industry Statistics

Engraving businesses fall under NAICS code 332812 – Coating, Engraving, Heat Treating, and Allied Activities. These businesses perform customization and personalization services on a wide variety of materials, from simple text to complex designs. Here are some important statistics about the engraving industry.

Engraving Industry Size & Growth: The engraving industry generated $1.9 billion in revenue last year. Over the past five years, it has shown steady expansion, with an average annual growth rate of 2.5%. The industry is projected to grow at a similar rate over the next five years, driven by increasing demand for personalized products and growth in electronic device engraving services (IBISWorld).

Engraving Business Profit Margin: Engraving businesses typically see profit margins between 20%-30% after accounting for operating costs, equipment maintenance, and materials

Costs To Start an Engraving Business

Starting an engraving business typically costs between $2,000 and $20,000. The lower end represents starting with a basic engraver for working with wood and acrylics, while the higher end would allow for more advanced equipment that can handle metals and a wider range of materials.

Here are some of the main expenses to consider when starting:

Engraving Equipment: The primary expense is the engraving machine. Entry-level laser engravers start around $300 to $2,000, while more advanced models range from $5,000 to $20,000. Many successful businesses start with a basic machine and upgrade as they grow.

Computer and Software: A computer system capable of running design software along with basic engraving software usually costs between $1,000 and $2,000. Most engraving machines come with their own software, which helps reduce initial costs.

Workspace Setup: Basic workspace equipment, including tables, storage, and safety items, typically costs $500 to $1,500. This includes proper ventilation for fumes and basic safety equipment like protective eyewear.

Initial Materials: Starting inventory of materials like wood, acrylic, and basic supplies usually costs between $200 and $1,000. This includes practice materials and enough inventory to create initial product samples.

These numbers are estimates, and actual costs will vary.