How to Find out the True Cost of Making Waterjet Parts

Numerous ways exist through which you can calculate the costs that go into making Waterjet Parts. One of the ways to go is by using the Cost of Goods approach as described in numberless business classes and books. Below are some of the approaches to help you in the determination of what exactly to charge for each part.

Dollar per hour basis

Many people in other industries would prefer this method and it can work for them but not for a waterjet machine. A shop running multi headpiece equipment with two pumps will eventually have a higher cost of operation than a shop with only a small machinery and low power pump. If the two shops were to compete on the dollar per hour basis, then the smaller shop would be much cheaper, and client would pay more while the part cost less to manufacture. A shop with the bigger, faster machine will therefore charge at the hour taking advantage of the speed of the installed machine.

Dollar per square inch

However, considering the piercings, corners and curves that require to be put in place, this method will take a long time to complete. The machine itself has to slow down in order to avoid a blow out around the turns and corners. Another factor that discourages this method of charging includes material thickness.

Best Approach

One of the best approaches to figuring out how much you will sell the part is by costing the part. To do this you need to estimate how much it costs you to make such a part using alternative methods such as using other types of machines or a competitor with a waterjet system. Find out if you can be able to constrict in some more parts especially from expensive material and price from there. Remember, the customer does not need to know that you are going to charge a rate of $120 per hour since they are not paying for the time spent rather for the part.

When looking to have Waterjet Parts made it is important to get in touch with as many shops in your locality as possible. This is important as each of them has its own weaknesses and strengths that you can make use of.

Be the first to like.