Quoting custom-cut parts requires precision, cost awareness, and clear communication with customers. Whether you’re cutting steel plates, aluminum sheets, tubing, or specialty materials, an accurate quote ensures fair pricing, profitability, and customer satisfaction.
Misquoting can lead to lost profits, unexpected costs, or customer dissatisfaction, so it’s essential to consider material costs, cutting methods, labor, waste, and overhead before finalizing a price. In this blog, we’ll break down how to quote custom-cut parts accurately and avoid common mistakes.
Key Factors to Consider When Quoting Custom-Cut Parts
Before calculating a quote, evaluate these critical factors:
✔ Material Costs – The price of raw material per unit (sheet, bar, coil).
✔ Cutting Method – Laser, plasma, waterjet, or saw cutting each have different costs.
✔ Machine Time & Labor – How long the job will take and operator costs.
✔ Material Waste & Nesting Efficiency – Scrap and offcuts impact cost.
✔ Overhead Costs – Shop expenses, maintenance, and tooling.
✔ Special Requirements – Tolerances, finishing, deburring, or secondary processes.
💡 Example: A customer requests 100 aluminum plates with tight tolerances. The quote must factor in high-precision cutting, additional machining, and material waste.
Step-by-Step Guide to Quoting Custom-Cut Parts
✅ 1. Calculate Material Costs
Determine the total cost of raw material needed for the job.
✔ Find the cost per unit (per sheet, per foot, or per pound).
✔ Calculate material yield – How many parts can fit on a sheet or bar?
✔ Factor in scrap and offcuts – Can excess material be used for other jobs?
💡 Example: If a 4′ x 8′ steel sheet costs $200 and can produce 20 parts, the raw material cost per part is $10.
✅ 2. Choose the Right Cutting Method
Different cutting methods impact cost, accuracy, and lead time.
Cutting MethodBest ForCost Considerations
Laser CuttingHigh-precision, intricate designsModerate cost, fast for thin materials
Plasma CuttingThick metals, general-purpose cutsLower cost, less precision than laser
Waterjet CuttingNo heat-affected zones, exotic materialsHigh cost, but excellent edge quality
Saw CuttingTubes, bars, simple shapesLow cost, but slower for high-volume jobs
💡 Example: If the customer requires ±0.005” tolerances, laser or waterjet cutting is best, but if cost is the priority, plasma cutting may be more economical.
✅ 3. Estimate Machine Time & Labor Costs
The longer a job takes, the higher the cost.
✔ Calculate setup time – Loading material, programming, calibrating the machine.
✔ Estimate cutting time – Speed depends on material thickness and complexity.
✔ Include operator costs – If a job takes 2 hours and labor costs $50/hour, labor costs are $100.
💡 Example: A stainless steel sheet cut with a laser at 50 inches per minute takes 30 minutes per sheet, plus 15 minutes of setup. If the shop rate is $75/hour, labor costs per sheet = $56.25.
✅ 4. Factor in Material Waste & Nesting Efficiency
Material efficiency impacts pricing—the less waste, the better the margins.
✔ Use nesting software to arrange parts efficiently.
✔ Charge for scrap material if significant waste is unavoidable.
✔ Consider offering offcuts to customers at a reduced price.
💡 Example: If a nested sheet has 85% material usage and 15% scrap, you can either charge for the full sheet or sell the scrap separately.
✅ 5. Add Overhead & Shop Expenses
Factor in indirect costs like:
✔ Machine wear & tear – Maintenance and consumables (e.g., cutting gases, abrasive materials).
✔ Facility costs – Electricity, rent, administrative overhead.
✔ Packaging & Shipping – Crating, protective wrapping, and freight costs.
💡 Example: If a shop runs at $150/hour, and a job takes 1.5 hours, the overhead portion of the quote should include $225 in fixed costs.
✅ 6. Include Special Requirements & Finishing
Some jobs require post-cut processing, which adds to the cost.
✔ Deburring & Edge Finishing – Smooth edges for safety or aesthetics.
✔ Coatings & Treatments – Powder coating, anodizing, galvanizing.
✔ Secondary Machining – Drilling, tapping, countersinking holes.
💡 Example: A laser-cut aluminum bracket that requires deburring and anodizing will cost more than a standard cut piece.
✅ 7. Apply Markup & Profit Margin
After calculating all costs, add a profit margin to ensure the job is worth taking.
✔ Standard markups range from 15% to 50%, depending on industry and competition.
✔ Higher complexity jobs or rush orders may warrant premium pricing.
💡 Example: If total costs (material, labor, overhead) per part = $25, a 30% markup results in a final price of $32.50 per part.
Common Mistakes to Avoid in Custom-Cut Quoting
🚫 Underpricing small orders – Always set a minimum order fee to cover setup and labor.
🚫 Ignoring hidden costs – Factor in tool wear, gas consumption, and shop expenses.
🚫 Failing to adjust for market fluctuations – Raw material prices change frequently, so update quotes accordingly.
🚫 Overlooking rush order pricing – Charge a premium for expedited jobs that disrupt workflow.
💡 Pro Tip: If an order requires special materials or urgent turnaround, increase markup to reflect the additional costs.
Final Thoughts: Pricing Custom-Cut Parts with Accuracy & Profitability
Accurate quoting ensures fair pricing for customers while maintaining profitability for your business. By considering material costs, cutting methods, labor, waste, and overhead, you can create competitive, yet profitable quotes that reflect the true value of your service.
🔹 Key Takeaways:
✔ Calculate material costs based on usage and scrap factors.
✔ Choose the right cutting method for precision vs. cost.
✔ Estimate machine time, labor, and overhead expenses accurately.
✔ Consider finishing services like deburring and coatings.
✔ Apply a reasonable markup to protect margins.
📊 Need to improve your quoting process? Follow these steps to ensure every custom-cut job is priced for success! 🔩⚙️💰
