At a glance
Test quoting software with completed jobs whose costs you understand. Check the calculations, revisions, and handoff to production. Try configuring an existing product before commissioning a custom build.
Example: estimating a ten-part batch
Scroll the table to see all columns.
| Cost element | Illustrative assumption | At 10 parts |
|---|---|---|
| Setup | 3 hours × $90/hour | $270 |
| Machine run time | 0.4 hours per part × $90/hour | $360 |
| Material | Assumed $18 per part | $180 |
| Outside processing | Greater of $150 per lot or $6 per part | $150 |
| Estimated batch cost | Sum of the four items above | $960 |
| Estimated unit cost | $960 ÷ 10 parts | $96 |
Check how quantity changes the cost
The table uses illustrative rates. Assume the $90 hourly rate includes the labor and overhead intended for this estimate. Programming, inspection, tooling, scrap, freight, and tax are excluded unless already covered. Add them where your job requires them.
At 50 parts, with the same setup, run time costs $1,800 and material costs $900. Outside processing costs $300 because the per-part charge exceeds the $150 lot minimum. Including the $270 setup, the total is $3,270, or $65.40 per part.
Check that the software handles fixed setup costs and lot minimums. If a larger quantity needs another setup or different workholding, update those assumptions too.
Confirm what “margin” means
A $96 unit cost with a 25% markup gives a $120 selling price. The $24 difference is 20% of that price. For a 25% margin on the same cost basis, divide $96 by 0.75 to get $128.
Ask the vendor to show the calculation. Check whether your hourly rates already include overhead or profit before adding another allowance.
Issued quotes should retain their original rates and assumptions. Updating a shop rate should not silently change an old estimate.
Use your jobs in the demo
Bring a repeat part, a new part with uncertain setup, a small order with outside processing, and a job with a drawing revision. Include drawings, estimates, and actual costs where available.
Check how the software handles difficult features. Protolabs’ machining guide explains how geometry and material affect effort. Its tolerance guidance covers requirements that can add operations.
Compare estimated and actual costs by operation. Reproducing an old estimate is only useful if its assumptions were sound.
Try configuration before custom development
Paperless Parts describes configurable pricing, CAD analysis, and historical setup and run-time information. Those are vendor claims to test with your jobs.
Ask the vendor to configure your rates, outside-processing minimums, and approval rules. If supported configuration covers them, you may not need a custom application.
Consider a build when an important requirement remains unresolved, such as a specific approval process or connection to an internal system. Identify the requirement and the cost of the workaround first.
Test revisions and the production handoff
Change the quantity and drawing during the demo. Check that the earlier estimate is preserved and the reviewer can see what changed. Try an expired outside-service quote as well.
Follow the approved quote into production. Check which part numbers, revisions, operations, quantities, and attachments transfer, and which need retyping. Include that work in the cost comparison.
For JTR Specialties, we built a quoting application around the shop’s own cost inputs. Use the same standard for any product or build: an estimator should be able to explain the price, revise it, and pass the approved details to production.