Three Quotes, Three Different Worlds ?
Here’s a scene that’s a real headache for anyone in procurement: you get three quotes for the same part. Shop A quotes $10, Shop B quotes $15, and Shop C comes in at $20. All three swear they have the best quality and service. At this point, you're probably scratching your head, wondering who to trust and why the numbers are all over the map.
Let's be blunt: a professional quote is more than just a number. It’s a reflection of a factory's understanding of your product, their commitment to quality, and the resources they plan to invest. Today, I'm going to take you behind the curtain and deconstruct that quote for you, turning you from a spectator into an insider who truly understands the game.
The Three "Cost Monsters" Lurking in Your Quote
A quote for a forged and machined aluminum part is dominated by these three "cost monsters" that eat up most of your budget:
Monster #1: The Die / Tooling Cost
This is often the biggest upfront expense and the one that makes people hesitate. You might ask, "Wait, I have to pay for a tool before you can even make my part?" Yes, you do. And it's a cost you don't want to skimp on.
Why is it so expensive?
- It's Made of Steel, Not Aluminum: To withstand the hundreds or thousands of tons of pressure needed to smash aluminum into shape, the forging die itself is made from high-strength tool steel. The raw material alone is costly.
- Precision Machining Hours: Carving a block of hardened tool steel into the precise negative of your part is a very slow, meticulous CNC machining process that requires high-precision equipment.
- Engineering Brainpower: You don't just "draw" a die. Experienced engineers have to design the flow paths, calculate material shrinkage, and figure out how the finished part will be ejected. That's an invisible technical cost.
Can you save money here?
"You get what you pay for" is the gospel truth here. A cheap die might use inferior steel or a rushed design. It might produce a few hundred perfect parts, but it will quickly wear out or deform, causing the dimensions of your mass-produced parts to go haywire. A good die is the foundation for ensuring quality across thousands or tens of thousands of parts. If you want to save money, focus on simplifying your part design, not slashing the tooling budget.
Monster #2: The Material Cost
This part is relatively straightforward: it's the price of the aluminum alloy you choose.
- Alloy Type: As we discussed in our last article, the price difference between 6061 and 7075 can easily be double or more. Your material choice sets the baseline for your cost.
- Material Usage: Forging isn't like 3D printing; it's a "subtractive" process in a way. You start with a slug of aluminum that's larger than the final part, heat it, and press it into shape. The excess material that squeezes out (the "flash") gets trimmed off. So, a 1-pound finished part might require 1.2 pounds of raw material. The real skill is in designing a die that minimizes this waste.
Monster #3: The Machining Cost
This is the most complex variable and where the "tricks of the trade" come into play. The raw part that comes out of the forge (the "forging") still needs to be CNC machined to get it to its final, precise dimensions from your drawing.
How is machining cost calculated?
- Machine Time: This is the biggest factor. The more complex your part, the tighter the tolerances, and the more holes and features it has, the longer it has to run on the CNC machine. Time is money, especially with today's energy costs. Every minute the spindle is turning, the meter is running.
- Fixture Cost: For parts with irregular shapes, a custom "fixture" has to be designed and built just to hold it securely in the machine for processing. This is another one-time, NRE (Non-Recurring Engineering) cost.
- Tooling Wear: The cutting tools used in CNC machines are consumables. They wear down, especially when machining hard materials like 7075. That wear and tear has to be factored into the cost.
Other "Hidden" Costs You Might Have Overlooked
Besides the three big monsters, a few smaller items can add up:
- Heat Treatment: Processes like a T6 temper require sending the parts to a specialized facility, which has a cost.
- Surface Finishing: Anodizing, hard-coat anodizing, sandblasting, or painting—every extra step is an extra charge.
- QC & Inspection: If your part requires 100% inspection or needs a full report from a CMM (Coordinate Measuring Machine), that ties up an engineer and expensive equipment, which also costs money.
Cheat Sheet: The Cost Structure at a Glance
| Cost Item |
What It Is |
Key Influencing Factors | How to Potentially Optimize |
| Die / Tooling |
A one-time investment to create the forging mold. |
Part complexity, grade of tool steel, required tool life. | Simplify the part design; discuss a reasonable tool life requirement with the supplier. |
| Material | The raw material cost for each part produced. | Aluminum alloy grade (6061/7075), part weight, amount of "flash" waste. | Choose the most suitable, not most expensive, material; optimize the design to reduce waste. |
| Machining | The cost to finish the raw forging to its final dimensions. | Required tolerances, structural complexity, machine cycle time, tool wear. | Discuss relaxing non-critical tolerances with your supplier; simplify the overall structure. |
| Other Costs | Heat treatment, surface finishing, quality control, etc. | The number of post-processing steps, the rigor of the inspection plan. | Select only necessary finishing steps; define a reasonable inspection standard with the supplier. |
Common Questions (FAQ)
Q1: Why do I have to pay for the die? Isn't it the factory's asset?
A: This is standard industry practice. The die is custom-made for your proprietary product, so the customer pays for it and owns it. The upside is that the factory cannot use your die to make parts for anyone else without your permission. In theory, you can also take the die with you when the contract ends.
Q2: Since I own the die, can I take it to another factory to use?
A: In theory, yes. In reality, it's very difficult. Every factory has forging presses with different tonnages, specs, and mounting systems. A die made for Shop A's press is unlikely to fit in Shop B's machine. That's why a part is typically produced where the die was originally made.
Q3: Is a cheaper quote for the die always better?
A: Absolutely not. This is a huge trap. A low-cost die can mean inferior materials, a rushed design, or a complete disregard for mass-production stability. You might save money on the upfront tooling cost, but you'll pay for it later with high reject rates, inconsistent parts, and a die that fails prematurely.
Q4: How much does order quantity affect the unit price?
A: Massively. One-time NRE costs like the die and fixtures are amortized over the entire production run. The cost-per-piece to absorb that fee is much lower when spread across 100,000 units versus just 1,000 units. That's the fundamental principle of economy of scale.
Q5: My quote has a line item for an "engineering fee." What is that?
A: More transparent shops will list this. It typically covers the initial engineering time spent on a DFM (Design for Manufacturing) analysis and process planning. Their engineers are studying your design, identifying potential problems, and suggesting optimizations. It's a very valuable professional service.
Q6: As a product designer, what can I do to help lower the cost from the very beginning?
A: Excellent question! You can do a lot: 1. Simplify your design by avoiding unnecessary complex curves and deep pockets. 2. Relax non-critical tolerances; don't spec out the entire drawing to aerospace-level precision if it's not needed. 3. Talk to your manufacturer early, bringing them into the design process to leverage their manufacturing expertise. This can help you avoid designing a part that is expensive or difficult to make.
Conclusion
I hope this "Quoting 101" gives you a clearer picture of the costs. Remember, a quote that only gives you a total price should be viewed with caution. A quote that breaks down the major cost drivers shows a supplier's professionalism and transparency.
If you have a new project and are looking for a partner who is willing to open up the books and have a transparent discussion about costs, feel free to give us at AFT a call. We believe good business is built on trust and expertise.