A quote can look profitable and still disappoint once production begins. The problem is often not the markup calculation; it is a cost or condition that was missing from the estimate.
Validate the material plan
Confirm stock form, purchasable size, minimum order quantity, expected yield, and scrap. Include freight, certification, and volatility where they matter. The price of ideal net material is rarely the full material cost.
Review setup and handling
Setup includes more than loading a program. Consider workholding, prove-out, tool preparation, in-process movement, deburring, washing, packaging, and inspection. Low quantities are especially sensitive to omitted setup effort.
Look for manufacturability risk
- Tolerance or finish requirements that constrain the process.
- Deep holes, thin walls, or difficult tool access.
- Special tooling, fixtures, or programming effort.
- Outside services with uncertain lead times or minimum charges.
- Inspection and documentation beyond normal practice.
State assumptions clearly
If the estimate depends on customer-supplied material, a particular lot size, relaxed requirements, or a defined delivery schedule, put that assumption in the quote. Clear boundaries protect both parties from a different interpretation later.
Use margin as a review signal
A target margin should not hide uncertain inputs. When a quote requires an unusually high adjustment to look acceptable, return to the manufacturing plan and find the source of risk. The best review explains why the price is right.
Back to all articles