Help With A Bulk Order Quote

[RMB Custom Leather]

I have been asked to give a quote for 3000 custom leather belt buckles with a company logo embossed in the middle. I have estimated about $5.00 my cost for the materials for each buckle but I haven't made one of these before so I am not sure how long it would take to make one to estimate my time. I am estimating around $500 for clicker dies and embossing plates. I have a few sets of the buckles on the way to test out because I plan to machine sew them instead of hand sew the edge. I was thinking about $11 wholesale considering the size of the order but I wanted some feedback from others. Any suggestions are welcome. Here is a picture of the buckles I am talking about but of course these will be plain black with the company logo on them http://www.tandyleat...ter/FP0004.aspx. A suggestion on the exact cost you would charge would be helpful.

Edited June 26, 2011 by RMB Custom Leather

[KAYAK45]

Hi Rob.

THE ONLY THING WORSE THAN LOSING A GOOD JOB BECAUSE YOU ARE HIGH, IS GETTING IT BECAUSE YOU ARE LOW!

Forget you "$ 11" idea and do your scientific study with NO PRECONCEPTION of price or value.

Total labor is not just the production, but also the administration (purchasing, handling shipping etc.) and ALL time must be considered.

Your COST for dies and tooling includes you purchase time and design etc.

In almost all industries, plumbing, heating and cooling, electrical, legal offices accounting firms etc.etc.etc. if you pay $10 per hour charge $30. $20 per hour $60.

That is 1/3 for direct labor 1/3 for overhead, 1/3 for the house. You...Sometimes, if it ever happens, that's called a PROFIT.

That's a good start for your bid.

[bison]

I agree with Kayak45...there is so much more to consider. I have settled on figuring that 2.5-3 times the materials cost is about where I need to be on big order...depending on their timeline. So for materials costing $1000, I'll charge $2500-3000. If it's a rush job and I have to put other things aside to get it done, I raise the price to about 4x the materials. Since I have another full time job, I'm ok if they say that's too high and want to look for a cheaper estimate.

Dave

[Glendon]

I'm with Kayak45 on this one. Add ALL of your dies and other tools to your bid. Printers and other industries call that a set-up cost. I'd also add to that set-up cost your time figuring out that first buckle. I'd charge your standard retail time rate for that. THEN you can quote them a reasonable price for the wholesale lot.

Edited June 27, 2011 by Glendon