Compression moulding
Gasket seal, nitrile
A compression moulded seal, quoted per thousand. The tooling is small enough that the quoted rate is close to honest, which makes it the useful counter-example on this shelf.
The quotation
Tooling class
SPI Class 105
Tooling charge
$2,400
Supplier MOQ
5,000 units
Base rate
$0.92
Tier 2 from
2,000 units
Tier 2 rate
$0.74
Tier 3 from
10,000 units
Tier 3 rate
$0.61
Freight per shipment
$340
Duty rate
2.7%
Scrap rate
3.5%
What it actually costs
Quoted at MOQ
$0.74
Landed at MOQ
$1.35
Landed against quoted
1.82x
Break quantity
3,130 units
At the supplier MOQ, tooling has already stopped being the largest thing each unit is paying for.
Material
Notes
This is the part that shows the wedge is not a trick. Tooling is $2,400 against 5,000 units, which is $0.48 a unit, and the landed price of $1.35 is 1.82 times the quoted $0.74 rather than the 3.34 times of the enclosure lid. A small tool honestly quoted looks like this.
Ten times the break quantity, 31,300 units, lands at $0.74: the same figure as the quoted tier rate, to the cent. That is what a quotation looks like when the arithmetic underneath it has finished happening.