I have a customer that needs a replacement part made. He needs one or two plus several of His customers may want one also.The cost of the part is $450, minimal cost of less than $75 in material. After getting setup, time cost would be 7 hours time invested. Is there a common ratio that is reasonable to expect to charge for the price or strictly time + materials? If He would ask what I have in the part I would not disclose that, as it's not His business what I make on the hour. If One would want to buy a new car You don't get to ask the Manufacturer what they have in time and materials. I realize the burden rate would not be one of My best money makers, but bringing in something when things are slow is better than cleaning up the shop, I would rather be making chips. Advice appreciated, Thanks.
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what customer might be thinking. i worked as a maintenance machinist as well as a field machinist or machine builder for many decades. my group leader was in charge of maintenance budget. he would calculate
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1) maintenance machinist is already paid for the whole week on maintenance budget. if any maintenance machinist had time free or caught up with work to make replacement parts thursday and friday i did this 98% of the time. making replacement parts was considered just cost of material and tooling, i had a backlog of easily 6 months work
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2) some parts i did not have the machines to best make many parts. it was out sourced to a outside machine shops many times.
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3) it was normal for me to spend 2 to 10 times longer to make a parts as i did not have the best shop equipment. for example can only go so fast on 2 hp machines
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so when asking outside shop to make parts if they said $1000. to make 10 parts the group leader in charge of budget thinks.
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how fast do i need the parts made ?
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how good a quality level do i really need ?
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can i make parts out of scrap material literally in the recycle bin and use normal tools and tooling the are currently in maintenance shop ?
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do i need a drawing made ? or can maintenance machinist do it himself without charging me $1000. for it ?
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if outside shop quoted $1000 to make 10 parts and maintenance machinist could make 1 part a week costing $20 in material and tooling i usually made the parts to save money. i would not get upset with customer asking how much questions. it is normal for a customer trying to stay within a budget.
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i would not think for a second you are a sole supplier of parts for a customer. you are most likely one of many parts suppliers. i made new replacement parts literally by the many thousands over the years. reverse engineering some call it. my boss just use to say here is old part make me another one not worn out. go figure it out yourself how to do it and do it as cheaply possible even if it takes 10x longer than a outside machine shop