Considering All Pricing Factors Can Reduce Later Surprises

It’s a common problem in comparing injection molding pricing among suppliers: Not determining all costs up front. Beyond initial or ball park estimates, comparing total costs of a program can ward off a number of pricing-related problems which can occur later including:

• Hidden costs of acquisition such as contract fees, cost of capital
• Unexpected price increasesUnacceptable material substitutions
• Recovery of costs that should have been included in initial pricing such as shipping, rejected goods credits, tooling maintenance, start-up and transfer fees

To avoid these issues, we have created a comprehensive cost-benefit analysis vendor cost comparison process which we offer at no cost, whether we are a potential supplier or not. This approach helps injection molding buyers due diligence on both existing and new suppliers by surfacing all fees that typically need to be addressed in any procurement process, but which often aren’t. By looking at all of these factors a total cost of acquisition can be more fairly computed. This in turn creates a stronger, more effective supplier relationship with better service, less quality and logistics costs and the opportunity for increased transparency. We cover a variety of issues including:

• True Delivered Prices
• Supplier search fees
• Ongoing supplier qualification and management
• Mold modification and setup
• Raw material inventory carrying costs
• Present and future capital cost
• Late delivery lost sales cost recovery
• Production demand fluctuation pricing impact
• Ramp up cycle times
• Finished goods inventories maintenance costs
• Quality resolution costs
• Transportation/logistics fees
• Transit time effects
• Packaging/containerization and material handling fees