Input Costs - The Background
Material is 12 to 22% of a machined part's price, so this is context, not the argument. 6061-T6 reached $4.98/kg (+0.81%), a fourth gain with momentum halved; 304 stainless $4.20/kg; 1018 steel $1.30/kg. C36000 brass fell to $8.42/kg (−1.52%) and C11000 copper to $15.86/kg as the late-October copper decline completed its pass through bar stock, so brass remains the one material not worth locking. Titanium Gr2 bar reached $22.36/kg. Machine hour rates did not move: $32 / $46 / $78 for 3-, 4- and 5-axis. What moved is the queue: typical machine queue shortened from seven days to five - the honest demand signal, and why the negotiating window is open.

The running example. Part 1472 - 6061-T6 sensor housing, 96 × 64 × 28 mm, 4-axis, Type II clear anodize, laser mark, annual 600 pieces released as two lots of 300. Benchmark price $25.10 per piece at 300. Every figure below is calculated against it.
Three Quotes, One Part, 64% Apart
All three received the same drawing and the same "300 pieces" line. None quoted the same scope. Catching that is the buyer's job, not the shop's to volunteer.
| Shop | USD / pc | Included | Not included or assumed |
|---|---|---|---|
| A | 19.40 | Machining only, bare metal | Anodize, FAI, fixtures ($1,240), packing, certificate; setup over 600 pcs; "6061" with no temper |
| B | 24.10 | Machining, Type II anodize, FAI, fixtures, specified 6061-T6, 300-pc amortisation | Mark setup, packing, EN 10204 3.1 |
| C | 31.80 | All of B plus CMM layout, ISIR pack, delivered freight, one 5-axis setup, ±0.012 mm throughout | Setup over 100 pcs; scope exceeds the drawing |
Normalising The Three Quotes
One written basis removes the spread: 300 pieces, 6061-T6 with EN 10204 3.1, ISO 2768-m, Type II anodize with masking, laser mark, FAI with dimensioned photos, fixtures in unit price, standard packing, EXW, no CMM unless specified. Put it on the RFQ and every shop prices the same object.

| Adjustment | A | B | C |
|---|---|---|---|
| Headline USD / pc | 19.40 | 24.10 | 31.80 |
| Type II anodize ($1.90/pc) | +1.90 | incl. | incl. |
| FAI report ($240 ÷ 300) | +0.80 | incl. | incl. |
| Fixture ($1,240 over 600 → 300) | +2.07 | incl. | incl. |
| Setup re-amortised to 300 pcs | +0.55 | - | −2.10 |
| CMM ($300) and ISIR pack ($1.20/pc) removed | - | - | −2.20 |
| Delivered freight → EXW | - | - | −0.65 |
| ±0.012 mm throughout → ISO 2768-m | - | - | −0.25 |
| Specified temper, 3.1, mark setup, packing | +0.38 | +0.55 | - |
| 4-axis machine-rate difference | - | +0.69 | - |
| Normalised USD / pc | 25.10 | 25.34 | 26.60 |
The 6% that survives is real. Shop C uses one 5-axis setup where A and B need two 4-axis setups, so its extra $1.50/pc buys coaxial accuracy and one less re-fixturing - worth paying on a bore-to-seal housing, wasted on a bracket. Normalisation does not tell you who is cheapest; it tells you what the difference buys. Awarding to A on the headline produces a $25.10 part plus five invoices nobody budgeted for.
Where A Low Quote Gets Its Money Back
A price under the benchmark is rarely a cheaper process; it is a smaller scope. These are the eight lines that come back after the PO.
| Left out of the quote | What it costs later |
|---|---|
| Fixture / NRE billed separately | $1,240 per lot ($4.13/pc at 300) - ask if it is in the unit price |
| Setup amortised over a larger quantity | +$0.55/pc when the release is 300, not 600 |
| Bare metal, finishing excluded | Type II $1.90/pc plus $85–145 lot minimum; hard anodize $3.20–6.50 |
| FAI and inspection "available on request" | $240 FAI, $180–450 CMM layout, invoiced later |
| Unspecified temper or substitute alloy | +$0.18/pc to correct, or a whole lot failing the temper callout |
| Certificate not named | $0.15/pc for EN 10204 3.1, or no traceability |
| Packing and freight terms blank | +$0.20/pc packing, $0.65/pc delivered terms, plus damage disputes |
| No rework or remedy clause | Sorting at $45–85/hr plus $0.35–2.20/pc on a rejected lot |
Add the first seven and Shop A's $19.40 hands back $5.70/pc before a part is cut. The scope line itself costs nothing and decides who owns every one of those invoices.
What The Drawing Is Burning
Once scope is fixed, the remaining controllable cost is on the print.
| Drawing callout | Adder | When it is actually needed |
|---|---|---|
| ±0.012 mm applied to every dimension | +$0.25 to +$2.85/pc | Fits, sealing faces, bores only |
| Ra 0.4 µm on all surfaces, not just sealing faces | +$1.60/pc | Sealing and sliding faces |
| Internal sharp corners (no tool-radius note) | +$3.20/pc for EDM or a second setup | Only where a mating part truly has a sharp corner |
| Full CMM layout on every lot | +$1.00/pc at 300 pcs | First article and capability studies, not every release |
A general tolerance block and a tool-radius allowance on the print are the highest-return DFM edit available: on a 600-piece year they remove $1,500 to $2,000 without changing how the part works.
The Volume Ladder And Where It Breaks
Fixed cost is $2,070 (program $330, fixture $1,240, FAI $240, mark setup $60, other $200) and variable cost $18.20/pc. That sets every breakpoint and is why a 600-piece quote cannot be honoured on a 300-piece release.

| Lot size | Fixed / pc | USD / pc | Step |
|---|---|---|---|
| 50 | 41.40 | 59.60 | Prototype |
| 100 | 20.70 | 38.90 | - |
| 300 | 6.90 | 25.10 | −35% - first real break |
| 600 | 3.45 | 21.05 | −16%; material discount starts |
| 1,200 | 1.73 | 18.93 | −10%; flattens |
The breakpoints that matter are 300 and 600. Below 300 you are buying setup; above 1,200 almost nothing is left to amortise and further concessions must come from the material leg, which is not negotiable. Consolidating two 300-piece releases into one 600-piece order saves $4.05/pc, or $2,430 a year, with no change to the drawing.
What A Missing RFQ Line Adds To Every Quote
Shops price uncertainty. A thin enquiry adds a risk premium no negotiation removes later, because it is already inside the number.
| Missing from the RFQ | Typical adder | USD / pc |
|---|---|---|
| Annual volume / release cadence | +8–15% | +2.01–3.77 |
| Datum scheme / GD&T / critical characteristics | +5–12% | +1.26–3.01 |
| Finish acceptance and masking | +4–9% | +1.00–2.26 |
| Material temper / certificate | +3–6% | +0.75–1.51 |
| Inspection deliverables (FAI, CMM) | +2–5% | +0.50–1.26 |
| Packing / delivery terms | +1–3% | +0.25–0.75 |
| Revision / engineering-change procedure | +3–7% | +0.75–1.76 |
Send the eight-line scope, annual quantity and release cadence together and a 300-piece quote typically comes back 8 to 15% lower with no change in the supplier's margin - the cheapest saving here, available before anyone cuts metal.
Three Decisions Worth Money This Week
Re-issue the RFQ on one written basis before comparing anything. Require each shop to state fixture cost, setup quantity, finish, inspection, certificate and delivery terms separately. Comparing headlines on a 64% spread is a coin flip weighted toward the least complete quote.
Consolidate the two 300-piece releases into one 600-piece order while the queue is short. With queue down from seven days to five, shops will trade price for a longer run: $2,430 a year on this part, with no calendar cost.
Do not lock brass this month, or chase the aluminium move. C36000 at $8.42/kg is still passing through a copper decline from weeks ago, so November and early December quotes keep easing. Aluminium's fourth gain was 0.81% - a $0.04/kg move shifts a $25.10 part by well under one cent. Spend the call on setup amortisation.
Where These Numbers Could Reverse
The queue is the thermometer. Five days is a cooling book, not a floor; past ten days the setup concessions vanish before the material leg moves. Brass softness is late, not new - a two-to-four-week lag keeps it easing even if copper turns, though a sustained reversal reaches bar stock by December. And finishing capacity is the hidden constraint: an unrequested anodizing rush premium means a full tank, and that queue sets your real date.
CNC Machined Parts: Capabilities And Specifications
| Item | Detail |
|---|---|
| Aluminium | 6061-T6, 6063-T5, 7075-T6, 2024-T3, 5083-H112 - 6061-T6 $4.98/kg |
| Steel and stainless | 1018, 1045, 4140, 4340; 304, 304L, 316L, 316Ti, 17-4PH, 416, 420 |
| Copper and brass | C11000, C10100, C10200, C12200, C36000, C46400, C63000 - C36000 $8.42/kg |
| Titanium | Gr1, Gr2, Gr3, Gr4, Gr5 / Ti-6Al-4V, Gr7, Gr9, Gr12, Gr23 ELI |
| Processes | 3- and 4-axis milling, 5-axis simultaneous, CNC turning, mill-turn, Swiss turning, wire EDM, grinding, honing, tapping, boring, broaching |
| Standard tolerance | ±0.05 mm, ISO 2768-m. Tighter: ±0.025, ±0.012, ±0.005 mm - priced per feature |
| Size envelope | Milling to 1,200 × 800 × 600 mm; turning to Ø 500 × 1,000 mm |
| Surface finish | As-machined Ra 1.6 µm; Ra 0.8 / 0.4 on specified faces; bead blast, brush, polish |
| Secondary operations | Anodize II/III, chem film, passivation ASTM A967, electropolish, black oxide, zinc/nickel plating, powder coat, heat treat, laser mark, leak test, kitting |
| Inspection | FAI with dimensioned photos as standard, CMM layout, comparator, roughness, thread gauges, hardness, EN 10204 3.1, PPAP/ISIR on request |
| Lead time | Prototypes 5–10 days; lots 22–32 days - each outsourced step adds 5–9 days of queue. Partial deliveries available |
| Commercial | EXW–DDP. Fixtures in unit price, setup quantity stated, bounded material escalation, 24-hour revision notice and swarf credit as standard terms |
Running a machining programme this quarter? Send the drawing, annual quantity and release cadence and we will quote on one written basis - fixture, setup, material, each finishing operation with its lot minimum, FAI, inspection and packaging as separate lines. First-article report and dimensioned photos as standard deliverables.





