How are Jobs quoted?
There are 4 or 5 main elements to the cost of supplying your product.

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1) Setup and Programming

This is all of the preparation required for your job.
It is chargedat an hourly rate.
Current SETUP charge for lathe jobs is $120-$160.
May include:
Create Part CAD Drawings.

  • Design fixtures.
  • Set up machine tooling and work holding.
  • Program CNC code.
  • Test Program/Make “First Off” part.
 
2) Raw Material

Length of part plus extra for part off & facing.
Our cost of the material + markup of 20-35% depends on volume and transport cost.
Some customers prefer to supply their own material which is welcomed.
  • steel, brass, aluminium, Plastic, cast iron, copper etc.
  • barstock, hollow bar, billets, castings, extrusions
 
3) Non Recurring Expenses

Any special fixtures required to hold the workpiece during machining.
Usually the fixtures, chuck jaws etc are fairly universal, so only a proportion of the cost is factored into your job.

  • Special Tooling or other abnormal 1 off expenses incurred specific to your job.
 
4) Machining

Rates vary by machine and complexity of the job. $60 - $150/hour.
  • Hourly rate which includes machine time and labour.
  • Hard materials may consume more cutting tools, this is factored in here.
 
5) Post Machining.

Subcontracted services are marked up 20-35%. Includes costs for freight to & from these subcontractors.
  • Heat Treatment
  • Electroplating
  • Freight/Postage of finished goods charged at estimated cost.

EXAMPLE: Quote 100/200/1000 Heavy Washers, mild steel, zinc plated D50x22x5. Customer to collect.

QTY Setup $120 Cost/QTY Material Machining Zinc Plating. $100 Min charge/QTY
Total Each  Ex GST
100
1.20
.42
1.00
1.00
3.62
200
.60
.42
1.00
.50
2.52
1000
.12
.40
.90
.10
1.52