Rate you were quoted
$4.20
Landed, per unit
$14.04
Difference
3.34x
Tooling228
Making it122
Freight34
Duty16
Order quantity1,000
Tooling is still the largest thing each unit is paying for. It stops being so at 1,867 units.

Four hundred cells, one for every four-hundredth of what a single unit costs you by the time it is on your shelf. The colour of each cell is what that fraction is paying for. Drag the quantity and watch the tooling share collapse.

The gap

The rate you were quoted and the money that leaves are different numbers

A quotation prints a unit price at a quantity and stops. It does not print the tooling charge spread over that quantity, the freight spread over that shipment, the duty charged on the goods, or the units scrapped alongside the ones you keep. Every one of those is money you pay per unit, and none of them is in the rate.

Rate you were quoted

$4.20

the tier 3 rate at 1,000 units

Landed, per unit

$14.04

the money that actually leaves

Difference

3.34x

not a markup; arithmetic with no line for it

Those three figures are this page’s own model run on its own defaults: an $8,000 tool, a $4.20 tier rate at 1,000 units, $1,200 of freight on the shipment, 4.5% duty on the goods and 2% scrap. Change any of them in the field above and all three move.

The number no price list states

1,867 units

The smallest order at which the tooling charge, spread over the order, first falls below what one unit costs to make. Below it, you are still buying the tool. At and above it, ordering more barely moves the price at all.

Landed unit price at multiples of that quantity

1x · 1,867 units

$9.60

5x · 9,335 units

$5.50

10x · 18,670 units

$4.99

Ten times the break quantity still does not reach the $4.20 that was quoted, and no quantity ever will. Tooling amortises. Freight, duty and scrap do not.

Where the recovery hides

The same $8,000 can reach you in three different shapes

A supplier has to recover what the tool cost. Which of these three they choose changes what you can see, what a reorder costs, and who carries the risk if the volume never arrives.

As its own line

$8,000 for the tool, then $4.20 a unit.

The only shape where the amortisation is yours to do. Order 1,000 and the tool costs you $8.00 a unit. Order 10,000 and it costs $0.80. Order again next year and it costs nothing, because it is already paid for.

Folded into the rate

No tooling line, and $12.20 a unit at 1,000.

The same $8,000, on a schedule the supplier chose rather than one you agreed. The rate does not know the tool is paid for, so a reorder at a smaller quantity can quietly charge you for it a second time.

Against a committed volume

$4.20 a unit, against a commitment to 10,000.

The cheapest of the three if the volume arrives. If it does not, the $8,000 is still owed and the units that were meant to carry it were never ordered.

Bands and worked examples from Jaycon’s 2026 injection moulding pricing report and from Omni Online Strategies on tooling and NRE costs. Both publish that this practice exists and give worked examples of what it costs. Neither publishes how often it happens, so this page does not say how common it is.

Materials

Scrap is the smallest of the four shares, and the only one that never amortises

Tooling, freight and duty all get cheaper per unit as the order grows. Yield loss does not: every good unit carries its share of the units scrapped beside it, at every quantity. At 1,000 units that is pennies against an $8.00 tooling share. At ten times the break quantity, when tooling is down to $0.43 a unit, the same pennies are a much larger part of what is left.

Lead times

A minimum order quantity is a schedule, not a price

Changeover

Paid once per run

Stripping a tool out, mounting yours, running to first article and proving it. The line is not making anything the whole time, and a small order pays the same bill as a large one.

Scheduling

Paid in position

A run that fits the gap between two larger ones goes in this month. One that does not waits for the next gap, and the wait is not a line on any quotation.

The run nobody breaks

Paid by whoever is smallest

A supplier will not stop a 40,000-unit run to fit a 500-unit one. That is not obstruction, it is the changeover cost again, and a minimum is how it is priced.

Enquiries

Send the part, the quantity and the tolerance. Ask what the figure excludes.

Three questions get you most of the way to a number you can trust: what the tooling charge is and whether it is inside the rate, what the quantity breaks are, and which incoterm the price is on. A supplier who answers all three is quoting. One who answers none is estimating.

MILLWRIGHT

A contract manufacturing template that prices the order against the rate you were quoted, and names the quantity at which the two stop disagreeing.

Every figure on this site is computed in the browser from the numbers in the fields, and nothing is sent anywhere. The model prices the quotation as typed: it cannot see a supplier renegotiating a tier, a tooling charge amortised across several customers’ orders, or a minimum that is really a scheduling preference. Duty is charged on cost of goods before freight, so a buyer on a different incoterm is on a different number.

© 2026 Millwright

Figures computed in the page, not fetched

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