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How to bring down your price per part:

Do you want to maximize your profit margin?

One of the best ways to maximize your profit is to order in larger quantities so you can reduce your cost per part.

You might think that larger orders automatically cost more, but custom projects are not priced the same as ready to purchase stock items.

All orders are custom made to your specifications and are priced according to the total amount of work it takes to complete the job, not an individual price per knife that is added up at the end.

How do we calculate a quote?

The baseline cost spreads thinner the more parts that are cut at a time.

When we calculate a quote, we have to factor in...

  • the labor to verify or create designs,

  • the labor to calculate the best yield from the raw material,

  • the labor to program the cutting machines,

  • the labor to set up and coordinate materials,

  • the cost to run the cutting machine,

  • and other things like materials, packaging, shipping, etc.

scale weighing the price per part for 12 vs 50 knife blanks

The larger order costs less per part because it is sharing the set up and machine cost across more pieces.

You will get more for your money.

Think about how much it would cost to cut only one knife blank. Between material waste, labor for set up, machine operating cost, time spent on CAD designs, and shipping costs the price will be sky high.

Now think about how much the cost per part would be reduced if you cut the same design 50 or 100 or 200 times. This is called “an economy of scale.”

graph showing an economy of scale comparing output to cost per unit

The more you buy, the lower the cost per part.

What else makes the cost per part go up?

  • Prototypes and small quantities are more expensive to process than full sheet orders.

  • A high mix of models with low quantities will also cost more per part because each design will require its own setup labor and machine programming.

  • Using smaller sheets of material. The larger the sheet the better the yield.

What is the cheapest way to get high quality parts?

Ordering more parts at a time from us is the most economical way to produce knife components because you will receive high quality, repeatable parts quickly and you can reduce the price per part. This means ⬆️ productivity and ⬆️ profit for your knife business.

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Contact us to get your custom knife project started today!


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