Pricing of a mechanical component
now the cost of production per piece may be like:
(raw material cost + tooling cost + machining cost + labour )/the number of components produced
is this right ?
Member • Jul 21, 2012
I think you forget "profit" in the numerator.zaveriTalking about the standard components like bolts, nuts etc, which are produced in mass, it is well known that the greater the quantity produced, the lesser will be the cost per piece.
now the cost of production per piece may be like:
(raw material cost + tooling cost + machining cost + labour )/the number of components produced
is this right ?
Member • Jul 21, 2012
Kedar MalwadkarI think you forget "profit" in the numerator.
Member • Jul 21, 2012
I am agree with you, but just need to add profit ( it should be very small amount for bolts and nuts.)zaveriwhatever it is , just elaborate it.
Member • Jul 22, 2012
Member • Jul 22, 2012
Oh yes i knew i was forgetting something.white_hatwhat about transportation cost?
Member • Jul 22, 2012
Member • Jul 23, 2012
but nowadays most companies who purchase standard components do not care about the brand.bioramaniThere is a brand cost as well. Standard companies will charge a premium (higher profit than others).
Member • Jul 23, 2012
Member • Jul 23, 2012
Manufacturing entities with ISO kind of certifications do.zaveribut nowadays most companies who purchase standard components do not care about the brand.
Member • Jul 23, 2012
Standard components do not require designing.white_hatDude you keep forgetting things...! Now what about designing and testing,that is going to cost a fair amount of money.