Pricing a part
Once you've estimated the cost of making a part, use pricing items to set the profit margin and find the right price for your business.
- Pricing table overview
- Add, remove, and reorder pricing items
- Adjust pricing item percentages
- Adjust unit price precision
Pricing table overview
Once you're done calculating the estimated cost for a part, navigate to the pricing table below the costing table to determine the part's final price. The pricing table holds all of a part's pricing items (markups and margins) and gives you insight into the estimated profit.
Just like operations, pricing items have built-in pricing logic or defaults that determine the percent markup/margin applied to a part. They can also be associated with processes and come in as part of the default router that is built when you assign a process to a part.
Each pricing item has an assigned "color of money" that describes the cost category it is marking up. For example, the pink material label next to the "Material Margin" above tells us that this margin is calculating 30% of the sum cost of material operations. These colors correspond to the badges and cost breakdown you see in the costing table.
Pricing items that mark up the entire cost of the quote will not have a badge.
Add, remove, and reorder pricing items
To add a pricing item, select Add pricing item and type to search for the right markup/margin.
To remove a pricing item, click the three dots next to it and select Delete.
Reorder pricing items by clicking the three lines next to an item and dragging it to its desired placement.
Adjust pricing item percentages
There are several ways to change the percentage of a pricing item.
- To adjust the percentage of a pricing item for one quantity, override any individual value by selecting it, typing the desired value, and pressing ENTER.
- Overridden values will turn yellow with a black arrow next to them. Hover over the arrow for information on who made the override, when, and the original value.
- To adjust one pricing item's percentage across multiple quantities, click the three dots next to it and select Adjust percentages.
- To adjust the percentages of multiple pricing items at once, click Actions in the top right corner of the pricing table and select Adjust percentages.
From this window, you can select an adjustment type and which quantities you want to change.
For example, let's say you're quoting a part with quantities of 10, 50, and 500. You want to apply a significantly higher margin to the lower quantities to encourage your buyer to place a larger order.
Let's start by setting all pricing items for quantity 10 to 50%. We'll use the Actions menu in the top right corner of the pricing table.
Next, we'll increase the material margin by 15% for quantities 10 and 50. Click the three dots next to "Material Margin" and select Adjust percentages.
Because we already overrode the Material Margin for quantity 10, this time we'll need to select Apply to overrides before clicking Adjust.
At the bottom of the pricing table, you can now see that the profit margin for the job with 10 parts is 62.76%, while the profit margin for the largest job is 39.51%.
Adjust unit price precision
For jobs where the unit price per part is less than $0.50 per part, you may need to present and/or calculate unit prices with a precision greater than 2 decimal places.
To change unit price precision, click Actions in the top right corner of the pricing item table and select Change unit price precision. Select a precision of 2, 3, or 4 decimal places.
This more precise unit price will be displayed to your buyer on the final quote and on the orders page.
Once you're content with your profit margin and have arrived at a final unit price, the next step is to add discounts or add-ons (if applicable) and set the part's dynamic lead time options.
Why don't I see a profit margin in my pricing table?
Shops with discounts enabled will not have a profit margin in their pricing table - rather in a pricing summary table underneath discounts. This is because discounts are calculated off of the unit price (after markups and margins are applied) and impact a part's net profit. Learn more about discounts here.