I doubt it will happen. This company is used to big parts coming from big shops. I think my markup will take us out of consideration.
Having said that, if they want us to supply the parts, they have to expect a markup. ([shrug] we will see.)
I've done as low as 2%
Outside has a fixed cost and a money carrying cost. Cover those and you make money.
Money floated was just this side of free for so long now. That is changing quickly.
Other view is that you have access to this money be it owned or borrowed.
Even in today's terrible market one can clear 7-10 percent.
Typically my stock and outside is 60% of cost. Normally it gets $100 plus 5% added on but this may change as the bank changes things.
When one needs to float over 1/2 million things get complicated fast.
I have seen Foundries mark up the tooling I make for them by up to 40-50% other times not at all. Often it seems to depend on how big a part of the job is their's. By that I mean how many castings they will be making off the pattern. If they're making a 100,000 parts they're making their money off the castings and they risk losing the job over higher tooling costs the markup is minimal. On the other hand if there's only a few castings often the tooling is more than the castings. This is where I have seen higher mark ups.
Similar to people posting here about not wanting jobs where the material is more than 50% of the job.