How to Negotiate CNC Machining Quotes？

In the manufacturing industry, CNC machining technology has won the favor of many people due to its high degree of accuracy and efficiency. Therefore, effective procurement and management of CNC machining equipment has become a problem that every manufacturing enterprise must face and solve. However, for many companies, the negotiation process of CNC machining quotations is a crucial and complex step. The CNC machining quotation directly affects the company’s decision-making on equipment procurement and subsequent production and operation activities, and may even determine whether the entire project is successfully implemented. A suitable quotation not only helps ensure the smooth progress of the project, but also creates significant economic returns for the enterprise.

Therefore, in order to improve the efficiency of using CNC machine tools, it is necessary to conduct in-depth research on CNC machining quotations to formulate the most suitable quotation strategy.Next, we will explore several core elements and operational steps that need to be considered during the CNC machining quote negotiation process.

What Is The Best Way to Negotiate CNC Machining Quotes?

When negotiating a CNC machining quote, it is particularly critical to ensure that the quote is both reasonable and within the scope of your budget. Without a good price, you won’t know when to make adjustments or decisions. Here are several strategies designed to help you get the best results from your negotiations:

Provides clear and detailed specifications:

• Detailed information is crucial: When submitting a quote request, be sure to provide as much detail as possible. The information involved needs to be evaluated before quoting. This involves the type of material (such as aluminum alloy, stainless steel, etc.), specific tolerance limits, the number of parts required, and the expected delivery date.
• Avoid misunderstandings: Clear standards help reduce misunderstandings that processing suppliers may have in understanding requirements, thereby preventing additional costs or changes due to unclear specifications.
• Facilitates accurate quoting: Detailed information can help processing suppliers more accurately assess their workload and costs, resulting in more accurate quotes.

Discussion of Quantity and Discounts

• Volume Advantages: If you have large parts requirements, you may want to consider discussing volume discounts with your machining supplier. Given the advantages of economies of scale, manufacturing more components tends to result in a decrease in the unit price of each component.
• Long-lasting partnerships: If you anticipate continued demand in the future, you may consider increasing the chance of a long-term partnership, resulting in a more competitive quote.

Negotiate installation costs

• Optimize design options: Have a conversation with your manufacturing supplier to discuss how you can reduce the total cost of installation through design or process improvements. In some cases, small design adjustments can effectively shorten the time required for processing and reduce costs.

Process Optimization

Ask your machining supplier if there are any suggestions for process improvements, which may include using more efficient tools, adjusting cutting parameters, or introducing new machining methods.

Value analysis

Clarify the proportion of installation costs in the overall quotation, and further explore the reasonableness of these costs. In some cases, through negotiation, we are able to find a strategy to reduce costs without compromising product quality.

When negotiating, both parties should maintain an open and honest communication environment. Building strong relationships with processing suppliers will help achieve better outcomes during negotiations. You also need to do a good job of comparing and analyzing quotes to ensure you get the most competitive quotes on the market.

How to reduce the cost of CNC machining in the negotiation?

To reduce the machining costs of CNC during the negotiation period:

1. Requirements for optimized design:

• Make the design of the parts simple, reduce the complexity and processing difficulty.
• Use the standard size and shape as far as possible to reduce the custom processing requirements.

2.Flexible selection of materials:

• Choose easy to obtain, economical standard materials.
• Alternative materials are considered conditions that meet the performance requirements of the product.

3. Set a reasonable tolerance range

• On the basis of ensuring that the product quality is not affected, the tolerance requirements are appropriately relaxed,
• Solicit the opinions of the processing parties, and formulate the economic and practical tolerance range.

4. Discuss the advantages of mass production:

• Increase the order volume and share the set costs and fixed costs.
• Ask the processors batch production discount policy.

5. Use professional processing skills:

• Listen to the opinions of processors on design optimization and cost saving.
• Let’s talk about the possible cost-reduction options together.

 What Are Some Common Pitfalls to Avoid When Negotiating CNC Machining Quotes?

During the negotiation process of CNC machining quotation, the common misunderstandings that need to be avoided mainly include the following aspects:

1. Ignore potential cost factors: Some processors may offer relatively low tooling costs, but this actually masks additional costs such as setup, moldmaking, and shipping. Therefore, during the negotiation process, make sure all costs are clearly stated and ask further if there are any potential costs that have not been included.
2. Inadequate consideration of tooling costs: For complex parts that require custom tooling, the cost of the tooling may account for a significant portion of the overall tooling cost. During the negotiation process, we need to make it clear whether the quotation covers the cost of the mold, as well as the ownership and use rights of the mold.
3. Not taking production time and rush fees to heart: When there is an urgent need, processors may charge rush fees. During the negotiation process, we discussed the actual production schedule and clarified the possible additional costs of emergency orders, which will help with budget preparation.
4. The requirements for tolerances are not clear: Too strict tolerance standards can increase manufacturing complexity and cost. During the negotiation process, we need to clarify the boundaries of the tolerance and delve into its potential impact on pricing to ensure that the processor can accurately assess the difficulty of processing and give a satisfactory quotation.

Is the lower the CNC Machining quotation, the more advantageous it is?

Case 1:

A company plans to process a set of aluminum alloy parts, with a total quantity of 1,000 pieces. Due to the small batch size and high quality requirements, the company decided to use a new processing method – cold extrusion forming method for production. LS’s quotation is 10 yuan per piece, while supplier A’s quotation is 8 yuan per piece. After the quotation, the two parties negotiated for many times and decided to adopt the method of shipping first and then delivering the order. Finally, the company decided to cooperate with Supplier A. The main technical requirement of this product is to ensure that the surface of the workpiece is smooth, free of cracks, pores and other defects, and that there will be no deformation or wear during the machining process.However, during the delivery of the goods, we found that the dimensions of the parts were greatly deviated, and the surface roughness was not up to standard, so they could not be used normally, which ultimately resulted in huge economic losses.

Case 2:

Another company also plans to manufacture a set of aluminum alloy parts, with a total quantity of 1,000 pieces. The company requires suppliers to provide corresponding drawings and technical information. LS’s quotation is set at 12 yuan per piece, while supplier B’s quotation is 10 yuan per piece. Since there was no cooperative relationship between the two parties, it was decided to use subcontractors to complete the project. After in-depth comparative analysis, the company realized that the price of LS was relatively higher, but its equipment was more advanced and its experience was richer, so it finally decided to choose LS. After the goods were delivered, the quality of the parts fully reached the predetermined standards, and the production process progressed smoothly.

From the above two examples, we can clearly realize that the lower the price for CNC machining, the better. It requires a comprehensive weighing of multiple factors. If you have any doubts about the quotation of CNC machining, we sincerely invite the LS LS team to provide you with answers!

What are some tips for reducing CNC machining costs?

Tips to reduce CNC machining costs mainly include:

1. Optimize design plan

The CAM blueprint is the starting point for product design, which is then converted into a CAD design and uploaded to the CNC machine to guide cutting. Through optimized design, CNC machine tools can complete product manufacturing in the shortest path and with the least material consumption, thereby achieving effective use of time and raw materials. Inaccurate CAD drawings can lead to high production costs as remanufacturing may be required. Consulting with experienced professionals during the design phase may increase initial costs, but will result in significant savings in the long term, especially for high-volume production. Therefore, it is recommended to invest more in design to reduce long-term CNC machining costs.

2. Simplify design to cut Expenses

Design complexity is directly related to CNC machining costs. Complex designs often require multi-axis CNC milling machines, significantly increasing overall costs. However, most complex designs can be assembled by breaking them down into simpler designs and machining them on a three-axis CNC mill. This method can significantly reduce CNC machining expenses.

3. Use rounded corner design to improve efficiency

CNC engraving machines are less efficient when handling sharp corners and 90-degree angles because they require frequent stops and turns. In order to improve processing efficiency, it is recommended to adopt a rounded corner design to enable the CNC machine tool to operate continuously and reduce pauses.

4. Set the thread length reasonably

Some manufacturers prefer to machine screws and bolts with long threads for added strength, but in most cases, short threads will suffice. Increasing thread length not only extends processing time and increases material costs, but also causes a waste of resources. Therefore, the thread length should be controlled within a range that meets the strength requirements.

5. Adjust tolerances to reduce Expenses

Tolerances represent the dimensional differences between the actual manufactured part and the design specifications, usually measured in tiny inches. When tolerances are set too tight, it drives up the overall cost given the complexity and specific needs of the part. Tight tolerances slow down processing and require the use of higher-standard CNC equipment. This not only means an increase in equipment investment, but also increases labor costs due to extended processing time. Therefore, when conditions permit, moderately relaxing the tolerance range is a wise choice, which can improve CNC machining efficiency and reduce costs. The tolerance accuracy provided by LS can reach +/- 0.005 mm, depending on customer needs.

6. Increase production to reduce Expenses

Increasing output is one of the most direct and effective ways to reduce CNC machining expenses. As production volume increases, fixed costs are spread over more parts, lowering the manufacturing cost of each part. Additionally, mass production reduces design costs because the same design blueprint can be used for mass production, further reducing tooling costs.

7. Avoid deep cavity machining challenges

Deep cavity machining involves long strokes of the tool inside the workpiece, which when implemented on a CNC milling machine can cause tool damage, rapid wear, vibration, bending, wall chatter, coolant supply problems and chip disposal problems. Not only do these issues require frequent tool changes, they also increase the risk of damage to the workpiece, which can have a significant impact on overall costs. Therefore, avoiding unnecessary cost growth is an effective strategy to save expenses.

8. Reduce over-processing

When a product requires a high post-processing finish, the processing time of CNC machine tools will increase significantly in pursuit of high quality edges. This increases machine and labor costs and accelerates tool wear. Therefore, it is crucial to reduce unnecessary over-processing. While some products may require secondary finishing to improve quality, this undoubtedly increases expenses. Directly using CNC processed products as finished products is a cost-effective option. Of course, special processes such as heat treatment, special coatings, anodizing and surface finishing are necessary in some cases, but their necessity should be carefully evaluated before implementation.

9. Avoid processing thin-walled parts

Thin-walled parts are extremely susceptible to damage during CNC machining and require special care. To avoid breakage due to processing forces or vibration, CNC machines need to cut at low speeds, which adds time and cost. Although using thicker walls instead of thin walls may slightly increase material costs, it can significantly reduce CNC machining expenses.

10. Choose a reputable manufacturer

There are many CNC machining companies, but the quality varies. Quality manufacturers may not offer the lowest prices, but they offer the best value for money and results. Some manufacturers attract customers with low prices but sacrifice operational quality. To avoid such situations, it is recommended to look for a reliable manufacturer that offers the required quality and price.

How did LS Company complete the quotation?

LS CNC machining plants provide precision machining services to various industries and play a vital role in modern manufacturing. As a customer seeking CNC machining services, understanding how a CNC machining shop generates quotes is critical to budgeting and making informed decisions. The following introduces the quotation process of the LS workshop and the factors that affect the pricing of processing projects:

Process	Description
Initial assessment of project needs	The quoting process begins with a thorough assessment of the client’s project needs. The LS shop collects all relevant information, including part drawings, specifications, material preferences and expected quantities.
Material selection and procurement	Material selection is an important factor in the overall cost of a CNC machining project. LS considers factors such as material availability, cost and suitability for a specific application before selecting the most appropriate material for a project.
CNC Machining Complexity and Tolerances	The complexity of CNC part design and required CNC machining tolerances directly affect machining time and difficulty. Complex designs and tight tolerances result in higher costs due to the need for specialized tooling and additional quality control measures.
Machine time and labor costs	LS will estimate the estimated machining time required to complete the project based on the complexity of the design and material properties. Labor cost calculations take into account the expertise of the mechanics involved in the project.
Quantity and batch size	The number of parts required and the lot size required will affect pricing. Higher production volumes generally result in greater cost savings due to economies of scale, as setup and machine preparation costs can be spread over more parts.
Additional operations and finishing	If additional operations are required, such as surface preparation, deburring or assembly, LS will include these costs in the quote.
Location and transportation	The geographic location of the CNC machining plant and the location of the customer may affect shipping costs. LS will take shipping costs into consideration when generating the final quote.
Quality control and inspection	LS strictly follows quality control procedures to ensure the highest precision and accuracy. Costs associated with quality control and inspection are factored into the quote.
Quotation software and estimating tools	Some CNC machining facilities use specialized software and estimating tools to generate accurate and detailed quotes. These tools help streamline the quoting process and provide a transparent cost breakdown.
Provide quotation to customer	After considering all relevant factors, LS will provide the customer with a detailed quotation that includes a breakdown of costs, estimated delivery time and any additional terms and conditions.

LS’s quote requires careful evaluation of project requirements, material selection, machine time, labor costs, and other factors that affect overall pricing. By understanding the quoting process, customers can make an informed decision to select the right LS as their CNC machining partner and ensure the success of their manufacturing projects.

You won’t regret negotiating with LS!

LS ensures the quality of your CNC machined parts with a quality management system certified by ISO 9001:2015, ISO 9001:14001 and IATF16949. Featuring advanced 4- and 5-axis CNC machining centers. Our precision CNC machining offers rapid prototyping, low-volume machining and high-volume production. Whether you need CNC machining services for prototyping, production, or rework, we’re here to help.

With our expertise and industry-leading technology, we can provide you with the highest quality online CNC parts and the best CNC machining services. Choose LS, and we will use our exquisite craftsmanship to accurately transform your drawings into real and tangible physical parts.

Conclusion

Negotiating a CNC machining quotation is a complex process that requires comprehensive consideration of many factors. By clarifying processing needs, understanding market conditions, evaluating processing costs, formulating quotation plans, negotiating and signing contracts, etc., the rationality and effectiveness of the quotation can be ensured. At the same time, we must also maintain an honest and professional attitude to win the trust and recognition of customers and lay a solid foundation for the long-term development of the company.

Contact us now to get exclusive CNC machining solutions!
Phone: +86 185 6675 9667
Email: info@longshengmfg.com
Website: https://www.longshengmfg.com/

Disclaimer

The content appearing on this webpage is for informational purposes only. LS makes no representation or warranty of any kind, be it expressed or implied, as to the accuracy, completeness, or validity of the information. Any performance parameters, geometric tolerances, specific design features, quality and types of materials, or processes should not be inferred to represent what will be delivered by third-party suppliers or manufacturers through LS’s network. Buyers seeking quotes for parts are responsible for defining the specific requirements for those parts. Please contact to our for more information.

Team LS

This article was written by various LS contributors. LS is a leading resource on manufacturing with CNC machining, sheet metal fabrication, 3D printing, injection molding,metal stamping and more.

FAQs

1.How does LS Company calculate processing costs?

When LS Company calculates processing costs, it usually considers material costs, equipment depreciation and maintenance costs, labor costs, tool and fixture losses, auxiliary material costs (such as coolant, cutting oil), and management costs. The company will conduct detailed accounting of these expenses based on the specific processing process, and may use cost allocation, activity-based costing and other methods to accurately calculate the processing cost of each part or batch.

How much does LS Company charge for CNC work?

LS Company’s charging standards for CNC work are usually determined based on factors such as processing costs, market competition, part complexity and accuracy requirements, and processing quantity. The company will take these factors into consideration to come up with a price that can cover costs while remaining competitive. The specific charging standards may vary depending on the part type, processing difficulty and batch size. We are waiting for your design drawings at LS Company to help you obtain an accurate quotation.

How to estimate CNC machining time?

Estimating CNC machining time can consider factors such as part geometry, material type and hardness, machining procedures and techniques, tool selection and cutting parameters. Generally speaking, CAM software can be used to simulate processing and the processing time can be estimated based on the simulation results. Alternatively, you can also make an estimate by referring to similar processing cases and historical data, combined with the operator’s experience.

Why is CNC machining expensive?

The main reasons for the high cost of CNC processing include expensive equipment and the need for regular maintenance, high technical requirements leading to increased labor costs, high loss of tools and fixtures, high machining accuracy requiring equipment with high precision and stability, and long production preparation time. These factors combine to make CNC machining relatively expensive. However, with the continuous advancement of technology and intensified market competition, CNC processing costs are expected to gradually decrease.