QuotedPartAnswers · Updated 2026-10-30
How does a US job shop compete with China and India pricing?
Price one of your own parts: Drop a STEP model or PDF drawing — about 90 seconds, no account.
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Compare landed cost, not unit price. On a 100-piece 6061 bracket our pricing engine quotes $41.17 each at US starting rates. If an overseas shop quotes $14.00 FOB (a hypothetical figure), freight, customs handling, inspection and a 5% defect allowance bring it to $21.72 with no duty, and $25.22 with a 25% duty. The US shop is still $19.45 higher at zero duty, so it doesn't win on price here, and the rest of this page is about where it does win.
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The landed-cost arithmetic, with assumptions
Start with the quote's FOB price ($14.00). Add air freight on shipping weight: the finished bracket weighs 0.48 kg, and with 20% for packaging it ships at 0.58 kg, and at an assumed $8/kg that is $4.62 a part. Add $150 for a customs broker spread over 100 parts, and $0.56 for 45 minutes of receiving inspection spread across the lot. Apply a 5% allowance for parts you scrap, rework or wait to have replaced, then add duty on the declared value.
Duty and tariffs change. Look up the current rate for your product's tariff classification at the US International Trade Commission's tariff search (hts.usitc.gov), including any additional duties that apply to the country of origin on the day you buy, and use that number in place of the scenarios below.
| Duty on declared value | Landed cost per part | US price gap | Break-even FOB price |
|---|---|---|---|
| 0% | $21.72 | $19.45 | $32.52 |
| 25% | $25.22 | $15.95 | $26.27 |
| 50% | $28.72 | $12.45 | $22.03 |
| 100% | $35.72 | $5.45 | $16.66 |
What the unit price leaves out
Lead time is the largest hidden difference. The engine's lead time for this bracket at 100 pieces is 14 working days from PO to shipping. An overseas order adds production, export handling, transit and customs, and the buyer pays for that wait with inventory or a stockout. Tell the buyer how many weeks of stock the longer chain forces them to hold, and what that costs them in cash.
Cash is the second. Overseas suppliers commonly ask for a deposit at order and the balance before shipment, which means the buyer's money is out for the whole production and transit time. A US shop shipping on net 30 gives the buyer terms. Put your terms in the comparison.
Risk is the third: a print change, a wrong revision or a bad lot costs a week of messages across time zones and a month of shipping. Add to that the cost of a second source if the first falls through, and the quality plan you need to inspect incoming parts yourself. These costs are real, but they are different for every buyer, so ask the buyer to do the arithmetic with their own numbers.
Where a US shop wins, and where it doesn't
You can compete on small lots, fast repeats, parts that change revision often, tolerances that need a phone call, export-controlled work that cannot go offshore, parts that must be made in the US for the contract, and anything where the buyer's cost of being wrong is large. You cannot compete on price for simple, stable, high-volume parts where the buyer has a good supplier overseas and lots of lead time. Say no to those, or quote the price the work needs.
In practice the move is to quote what you do best, say what the quote includes, and keep the buyer's total cost of ownership in view. Show the lead time, the payment terms and the inspection you do in the quote itself.
Landed-cost inputs
- • Overseas FOB price: $14.00 each (hypothetical).
- • Air freight $8/kg on shipping weight 0.58 kg per part; customs broker $150 per shipment.
- • Receiving inspection 45 minutes at $75/h; 5% defect allowance on the sum of price, freight, handling and inspection.
- • Duty is a percentage of FOB value; scenarios 0, 25, 50 and 100%.
| Line | Per part |
|---|---|
| FOB price | $14.00 |
| Air freight | $4.62 |
| Broker share | $1.50 |
| Receiving inspection | $0.56 |
| Defect allowance (5%) | $1.03 |
| Landed, no duty | $21.72 |
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.
- The FOB price, air freight rate, broker fee, defect allowance and duty scenarios are hypothetical inputs for a worked example; no real overseas quote, tariff or freight rate is claimed.
- The US price is from QuotedPart's pricing engine at the US starting catalog rates and 30% markup.
- Current duty rates are looked up in the US International Trade Commission's Harmonized Tariff Schedule. — source (checked 2026-10-30)
Questions
Should I just lower my price?
Only if the lower price still covers your cost at your rates. If the gap is more than your margin, no wording will close it. Move to the work where your total cost to the buyer is lower.
What about ocean freight?
Ocean freight is much cheaper per kilogram and slower by weeks. Replace the air rate with your own quote and add the extra weeks of inventory to the buyer's cost.
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.
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