my only overhead is the materials.
All your equipment is overhead, when it gets old you have to buy another one. The costs for the building where your equipment is located is overhead along with it's utilities. Do you have computers? Do you draw a salary or pay employees?
It costs a new McDonalds franchise close to a million dollars to build out a new restaurant before he can sell a single burger and I promise that he doesn't think that the only overhead he has is some meat & a bun. I guess if you have a skillet at home that you could be in the restaurant business too!
If you guys keep doing elcheapo work based on a small margin over your materials cost then it will be hard to scale your operation big enough to do serious money. At $25 you have to do 110 a day, 365days to gross $1M!!
You'll have to get a larger space, hire help, but you'll be stuck with a low price reputation. When you raise your prices you will lose all your lowball loving customers. You can't just look at "I'll make $300 today".... How are you going to make $3000 today? And tomorrow, and the day after. Your $300day is only 75k/yr (gross) if you do it every day 5days a week. That's a mediocre job, not a business!
One of my local competitors has serveral plaques on their wall for outstanding sales volume (a big franchise store). IN 2006 they had months of 148k, 225k, 248k, 265k, 175k. They didn't get there by selling $25 signs. They come in at 8am, and leave at 5pm, don't work weekends or holidays. I called him to ask if they were open Monday (Labor Day) and he scoffed at the idea of working a holiday! I'm stuck working all weekend and only doing 10% of what he is...