If you’ve ever looked at a quote and wondered why the price per piece decreases when quantities increase, you’re not alone. At Laser Precision Cutting, we believe informed customers make better decisions, so we want to pull back the curtain on how production jobs are quoted and what really goes into the price.
Below is an example of 2 parts quoted in quantities of 1, 5, 10, 25, 50, 100:
Quoting Is More Than Just Cut Time
It’s easy to assume a quote is based only on how long a laser runs. In reality, cutting time is just one piece of the puzzle. Every production job includes a set of fixed processes that happen whether we’re cutting 1 part or 1,000 parts.
These include:
- Programming and setup
- Material sourcing and handling
- Sheet loading and changeovers
- Quality checks and documentation
- Part sorting, packaging, and preparation for shipping
The first four steps take roughly the same amount of time no matter the quantity.
In addition, many jobs require secondary processes after cutting, such as:
- Bending or forming
- Tapping
- Countersinking
- Deburring and edge finishing
Each of these steps requires equipment setup, operator time, and quality checks. Like laser setup, much of this time is required regardless of quantity.
That’s why smaller orders often carry a higher cost per part; the setup and overhead are spread across fewer pieces.
Why Unit Cost Decreases as Quantity Increases
When you order higher quantities, those fixed costs are distributed across more parts. The result is a lower unit price, even though the total order value may be higher.
For example:
- A 10-part order with bending and tapping must absorb laser setup, press brake setup, tooling changes, and inspection across just 10 pieces
- A 100-part order spreads those same setup and processing costs across 100 pieces
The process is the same. The difference is how those costs are distributed.
This is why production runs are always more cost-effective than very small lot orders, especially when secondary operations are involved.
How Secondary Processes Affect Pricing
Secondary processes add value by delivering parts that are ready to assemble or install but they also add time and labor. Pricing for operations like bending, tapping, countersinking, and deburring reflects:
- Setup and tooling requirements
- Machine time
- Skilled labor
- Inspection and quality assurance
In many cases, the first bend or first tapped hole is the most expensive, because that’s where setup occurs. Additional parts benefit from that initial setup, which is why quantity plays such a big role in overall cost.
Minimum Lot Charges Explained
You may notice a minimum lot charge to bring the total to $120 on some quotes. This isn’t a penalty, it’s simply the baseline cost required to cover the time, labor, and resources needed to properly set up and run a job.
Even the smallest production order still requires:
- Programming and setup
- Equipment and operator time
- Secondary process setup (if applicable)
- Quality control and documentation
A minimum ensures we can deliver consistent quality, accuracy, and turnaround without cutting corners.
Standardized Quoting = Consistency and Accuracy
We use a standardized quoting system to ensure consistency across materials, cutting time, and production costs. This allows us to:
- Quote jobs accurately and fairly
- Maintain consistent pricing across repeat orders
- Reflect real-world increases in material and operating costs
- Provide reliable lead times and expectations
Manufacturing costs have changed significantly in recent years, and our pricing structure reflects the realities of today’s production environment while still remaining competitive.
How to Get the Best Value on Your Job
If you’re flexible, there are a few ways to reduce cost per part:
- Combine orders to increase quantity
- Plan ahead for production runs instead of rush one-offs
- Ask about alternate material thicknesses or nesting options
We’re always happy to review options and help you find the most efficient approach for your needs.
A Quick Note About Online Quoting:
Our online quoting tool is intended for smaller quantities that fall below full sheet yield. Production pricing involves additional considerations and requires a detailed review by our team.
If you’re planning a production run or evaluating higher quantities, we encourage you to reach out directly so we can provide pricing that accurately reflects production costs, quality requirements, and realistic lead times.
Our Commitment to You
At Laser Precision Cutting, our goal isn’t just to quote a job; it’s to be a reliable production partner. That means clear communication, honest pricing, and parts that meet your specifications every time.
If you ever have questions about a quote, quantity pricing, or production strategy, give us a call. We’re glad to walk through it with you.