QuotedPartAnswers · Updated 2026-10-30
How do I price a blanket PO with scheduled releases?
Price one of your own parts: Drop a STEP model or PDF drawing — about 90 seconds, no account.
Your part priced in about 90 seconds, no account.
Price a blanket by the quantity you will actually run at once, then add what it costs to hold the finished parts until each release ships. For 400 aluminum brackets released 100 a quarter, our pricing engine gives $41.17 each if you run 100 four times, $34.03 each for two runs of 200, and $30.59 each for one run of 400. After carrying cost, one run of 400 comes to $32.42 each and four runs of 100 to $41.17: the bigger run saves $3,499.64 over the year if the buyer's schedule holds.
See how QuotedPart connects to your workflow with its API, MCP server, autonomous quoting and shop-specific learning.
Three ways to run 400 pieces
Start from the engine's price at each run size. Setup, programming and first-article inspection are the same whatever you run, so smaller runs pay them more often: that's why the 100-piece price is $41.17 and the 400-piece price $30.59. The engine's run-time curve also starts to cut machine minutes from 100 pieces up, which helps the bigger runs.
Then add carrying cost for the finished parts you hold between releases. The example assumes releases every 3 months, an 8% yearly cost of the cash tied up in parts (at cost), and $0.25 per part per month for shelf space and handling. Those are assumptions; use your own cost of money and your own storage cost.
| Run size | Runs | Price of runs | Carrying cost | Total | Each |
|---|---|---|---|---|---|
| 100 | 4 | $16,468.00 | $0.00 | $16,468.00 | $41.17 |
| 200 | 2 | $13,612.00 | $254.72 | $13,866.72 | $34.67 |
| 400 | 1 | $12,236.00 | $732.36 | $12,968.36 | $32.42 |
What to put in the blanket terms
A blanket PO that doesn't say what happens to the unreleased balance is a risk. Put these in writing before you build ahead: the total quantity and the release schedule; the price per part for the whole blanket; the minimum release size; how many days of notice a release needs; what happens if releases stop or slip (the customer takes and pays for what has been built, and for the material bought for the balance); and a cutoff date, after which the buyer pays for the remainder or the blanket closes.
The material is the bigger commitment. If you buy bar or plate for the full 400 at the start, it sits on your books for a year. Decide whether you do that, buy per run, or ask the buyer to pay for material on order. A price built on a volume discount for material only holds if you buy the volume.
Price changes need a clause too. A blanket that spans a year with a fixed price has material and labor risk in it. Many shops fix the price for the first two releases, then reprice by a stated index or a plain percentage, or limit the blanket to six months.
Which price should the buyer see?
Quote the blanket at one price per part and state the run size it assumes. If the buyer cuts the blanket to 200 after the first release, the price for the remaining parts is the 200-piece price, and your terms should say so. It makes a short blanket the buyer's choice, not a surprise.
Don't give the 400-piece price to a buyer who only commits to a 100-piece release. A forecast isn't a commitment; the price should follow the quantity on the PO. If the buyer wants the price for 400 and a delivery of 100, the carrying cost above is the price of that flexibility, and the blanket with a firm total is how they get it.
Carrying-cost assumptions
- • Releases of 100 every 3 months; each run is finished just before its first release, so a run of 100 holds nothing.
- • Carrying cost = parts held × months × cost each × 8% ÷ 12, plus $0.25 per part-month.
- • Material bought per run, not for the whole blanket.
| Run size | Part-months held | Cost of money | Storage |
|---|---|---|---|
| 100 | 0 | $0.00 | $0.00 |
| 200 | 600 | $104.72 | $150.00 |
| 400 | 1800 | $282.36 | $450.00 |
Sources and limits
Claims are dated where they can change. Product calculations are examples from the stated inputs, not a promise about a customer's quote. Competitor wording is attributed to the source shown.
- Run prices are from QuotedPart's pricing engine for a fictional 4 × 3 × 1 in 6061 bracket (US starting catalog, 30% markup). The 3-month release gap, 8% cost of capital and $0.25 per part per month storage are example assumptions.
Questions
Should I price the blanket at the 400 price or the release price?
At the price for the run you will make. If you will run 400 at once and hold stock, use the 400 price plus carrying cost. If the buyer won't commit to the total, use the release price.
What if the buyer cancels the balance?
Your terms should say they pay for finished parts, work in process and material bought for the balance. See the cancellation page.
Price one of your own parts
Drop a PDF drawing or a STEP file. QuotedPart reads the print, measures the model and prices it in seconds, on default shop rates you can change.
Your STEP file or PDF drawingDrop a PDF drawing, a STEP file or both
Free. No account, no email. Priced at our default US rates until you set yours.
Related QuotedPart guides
Answers
How a new machine shop should price its first jobs
A first-job worksheet for setting a sustainable floor, recovering setup and learning without becoming the cheap shop.
Answers
How do I calculate my machine shop's hourly rate?
A transparent machine-shop hourly-rate method: annual ownership, labor, power, upkeep, overhead, utilization, and profit divided by billable hours.
Answers
How much should a one-man garage shop charge per hour? A worked rate
A one-person garage shop with a used mill needs about $128 an hour at 50% billable time. Why having no rent barely moves that, what does, and a worksheet to find your own number.
Answers
How to tell whether your machine shop is charging enough
Five numbers expose underpricing: loaded cost, billable utilization, setup recovery, actual margin and cash; a worked break-even example shows the test.