Injection moulding
Enclosure lid, ABS
A two-part lid for a wall-mounted enclosure. The tool is the cheapest class that will hold the tolerance, and at the quantity most buyers first ask about it is still paying for most of every unit.
The quotation
Tooling class
SPI Class 104
Tooling charge
$8,000
Supplier MOQ
1,000 units
Base rate
$6.00
Tier 2 from
250 units
Tier 2 rate
$5.00
Tier 3 from
750 units
Tier 3 rate
$4.20
Freight per shipment
$1,200
Duty rate
4.5%
Scrap rate
2%
What it actually costs
Quoted at MOQ
$4.20
Landed at MOQ
$14.04
Landed against quoted
3.34x
Break quantity
1,867 units
At the supplier MOQ, tooling is still the largest thing each unit is paying for.
Material
Notes
At the 1,000 units this part is quoted at, tooling contributes $8.00 of a $14.04 landed unit. That is more than the $4.20 rate the supplier quotes and more than the $4.29 the units actually cost to make, and none of it appears on the quotation as a line.
Ordering the break quantity of 1,867 units brings the landed price to $9.60. Ten times it, 18,670 units, brings it to $4.99, which still never reaches the $4.20 that was quoted, because freight, duty and scrap do not amortise away.