QuotedPartAnswers · Updated 2026-10-30
Should a job shop price cost-plus or by what the market will pay?
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Calculate cost first, then decide whether the customer’s schedule, risk and alternatives justify a different price. Cost-plus gives you a defensible floor; value or market pricing can move the offer above or below that floor only when you understand the consequence. Worked example: a prototype costs $600 under your routing. A 30% markup produces $780. If the buyer needs a validated replacement in 48 hours and your cell can meet it, a $1,050 price may be commercially sensible; it is $270 above the cost-plus price, not a magic “market average.”
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Cost-plus is the floor you can audit
List material, programming, setup, run, inspection, outside processes, freight and a risk allowance. Suppose a one-off 6061 manifold needs $85 material, 2.5 hours at $120/hour ($300), $95 inspection and $120 outside anodize. Cost is $600. A 30% markup is $180, so the cost-plus price is $780. If the buyer requests five, spread the $300 setup across the lot: cost becomes $85 × 5 + $300 + $95 + $120 + run cost; calculate that quantity separately rather than multiplying the one-off price.
The floor protects against a busy shop that is busy losing money. Include the opportunity cost of a constrained machine in your commercial review, but keep the physical routing honest. A price below cost can be a deliberate investment only if the owner names the amount and the reason.
| Line | Calculation | Amount |
|---|---|---|
| Material | stated assumption | $85 |
| Machining | 2.5 × $120 | $300 |
| Inspection | stated allowance | $95 |
| Anodize | vendor lot charge | $120 |
| Total cost | 85 + 300 + 95 + 120 | $600 |
| Cost-plus price | 600 × 1.30 | $780 |
When value or market context matters
A rush slot can have value because the buyer avoids a line stoppage, but only the buyer can tell you what the alternative costs. Ask for the required delivery and consequence, then quote a schedule you can actually meet. A difficult ITAR handling path, a first article package or a fragile material may justify a risk premium if it is stated in scope. A repeat production award may justify a lower unit price when the setup and programming are proven and the volume is committed.
Do not infer value from a buyer’s silence or make up a competitor price. Ask what decision the quote supports, provide options when useful, and let the customer choose speed, inspection or quantity.
Compare the offer with alternatives fairly
If a competitor is $700, first check whether both quotes include the same material, finish, certs, inspection and delivery. If yours includes $120 anodize and their scope says “finish by others,” the apparent $80 gap is not a pricing lesson. If you can reduce setup with proven workholding, recalculate cost before discounting. If the buyer needs 48-hour delivery and your normal slot is 10 days, quote the rush only after checking overtime, subcontract and freight.
Record the chosen basis—cost-plus, target value or a deliberate strategic price—inside the estimate. Review the actual result later, including whether the customer returned with more work.
What to do next
Set a written cost floor, list the events that can support a premium, and require an owner decision for any offer below the floor. The best pricing conversations start with a real routing and end with a scope the buyer can compare.
Illustrative prototype assumptions
- • Material $85; machining 2.5 h at $120/h; inspection $95; anodize lot charge $120.
- • Markup 30%; any rush or value premium is a commercial scenario, not a sourced market price.
| Measure | Value |
|---|---|
| Cost | $600 |
| Markup at 30% | $180 |
| Cost-plus price | $780 |
| Illustrative rush price | $1,050 (scenario only) |
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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