CNC machining
Housing, 6061 machined
A machined housing from billet. There is no mould, but the fixture and soft jaws are still a one-off, and at 250 units they are a fifth of what each housing costs to land.
The quotation
Tooling class
Soft jaws and fixture
Tooling charge
$3,200
Supplier MOQ
250 units
Base rate
$18.60
Tier 2 from
100 units
Tier 2 rate
$16.20
Tier 3 from
500 units
Tier 3 rate
$14.10
Freight per shipment
$480
Duty rate
2.2%
Scrap rate
1%
What it actually costs
Quoted at MOQ
$16.20
Landed at MOQ
$31.73
Landed against quoted
1.96x
Break quantity
196 units
At the supplier MOQ, tooling has already stopped being the largest thing each unit is paying for.
Material
Notes
Subtractive work carries its cost in the rate rather than in the tool, so the quoted $16.20 is already most of the $31.73 landed. Freight and duty are small. What moves this number is quantity against the fixture, not a cheaper metal.
At ten times the break quantity the landed price is $16.47 against a $14.10 tier rate. The fixture has amortised to nothing and what is left is the cut itself.