At my day job we hire the cheapest shop. What I really mean by this is the shop that can make our parts right the first time, fix them fast if they don’t, do so on short notice, provide us with decent feedback, and put up with our BS. Our time costs money, as does delaying our programs even if it is our fault.
I ordered 2 batches of identical parts this week from different shops. One cost me $20/part and is going to take 3 weeks, it will be correct. If I give them 8 weeks notice and slightly more volume the price gets lower than what I can by the material for. The other shop cost me $500/part and is going to take 2 days, They will aim for perfect, but will end up being 95% correct. They will put up with a giant pile of “right now, send them hot off the machine” BS.
Same part, similar volumes.
Note that the dollar amount on the quote only comes in after those other requirements. I don’t know you from Adam, and I have an established supply base. That means I’m only coming to you because I have a problem my base can’t solve. I’m going to cast a wide net with places found online, in which case you need to be cheaper/faster on the first job so that I have an opportunity to discover that you are better.
Alternatively, I’m going to take a recommendation from a shop I already know. I actually did that just this month. The best way to get into that network is going to be doing overflow work, initially at unreasonable low rates or fast timelines until you’ve proven yourself reliable.