DIE CUT PRICING

You may often wonder how a company prices your particular job and why.  Well, most companies aim for a $90+ per/hour turn around on each job.  That may seem like a lot but when you consider the operator's salary, overhead, cost of the machinery and setup, it works out about right.  In fact, most automotive repair shops clearly show an hourly rate posted on their boards similar to this.  Here at Mag-Knight, we do the same (a die cutting industry first).  Our hourly rate is $60 per hour.  This is why we can often underbid many large companies by 25%- 40%.  When you speak to another die cutting firm ask them for their projected hourly rate.

Comparison

Recently, we were given the opportunity to bid on OEM truck parts.  The manufacturer did not disclose what they were paying for their die cut parts until after they awarded the contract.  We bid and won the contract because our price, which includes the raw material, was over 400% cheaper than what they were paying with another company.  Take a look...

Variables

There are several variables to consider when looking for the best price...

1.  How many parts will be cut with each press cycle?  In general, the more parts you get with each cycle, the cheaper the price per part.  This will raise the price of your steel rule die but lower the cost of each part.  Keep in mind however, if you cut 25 parts per press cycle, it will take us quite some time to pick up those 25 parts so there is a point on the economic curve where too many parts per press cycle will actually make the job more expensive.

2. Can we leave the cut part in the "webbing" or do we have to remove it.  Craft foam is a great example where we can cut several parts from one 12" x 18" sheet.  If we have to pick up and sort each tiny part,  the price goes up.  If we can pick up the cut sheet and place it in a box while each part barely clings to the "webbing" your price is reduced!

3. Handling.  Is your product sensitive to scratching or damage or can it quickly be placed in a box without fear of damage?

4. Material.  Is your material heavy or awkward to handle?  What size the parent material come in?

Most companies will not touch small jobs that take less than one or two hours.  Even if they will, they will charge you a setup fee which can often exceed the actual cost of cutting!  We NEVER charge a setup fee.  Compare our prices just like the OEM above, you will be astonished!!!