What Are the Most Important Five Parts of Stamping Cost

What Are the Most Important Five Parts of Stamping Cost

    When looking for a stamping manufacturer to do your metal stamping, the most important things you want to know is how much you are going to spend . Have you ever thought to lower the stamping cost without sacrificing the quality of your product? In this article, we will focus on five important parts of stamping cost through the whole stamping process which will influence the stamping cost.
    The first part is material cost. Materials can be classified into plenty of kinds such as stainless steel(304、316、410、321),carbon steel(SPCC,C1022~C1060),aluminum(5052、5056、6061、7075),copper(C101、C103、C106、C109、C110、H62). Material cost constitutes a major proportion of the total cost of the product. General speaking,there is a calculation formula of material cost: Product unit weight(gram)* unit price of raw material(USD/gram).
    The second part is mold cost. Mold cost including the mold material and labor cost of engineer.Usually it will take 7 days to 14 days to open a new mold. However, cooperating with an experienced manufacturer of making molds,@DGkaixiang can make this a relatively simple process.
    The third part is manufacturing cost. Manufacturing stamping parts costs fall into three broad categories of expenses: direct materials,direct labor, and allocated manufacturing overhead. All are direct costs. Manufacturing cost is closely related to the stamping speed of every shift, such as 100,000 pieces per shift which cost is around 100USD. So the unit cost for this part manufacturing cost is 0.001USD. Let’s take a simple example. Provided that you want to manufacture a car, direct materials includes steels,wheels and leather. Here is a assumption.
Direct Materials:
·Steel: $8,000
·Wheels: $5,000
·Leather: $1,000
·Total: $14,000
Direct Labor:
·$20,000 
Manufacturing Overhead:
·$10,000
Direct Materials ($14,000) + Direct Labor ($20,000) + Manufacturing Overhead ($10,000) = Total Manufacturing Cost ($44,000) 
What motivates many businesses to continue expanding production up to capacity is to achieve a lower cost.
    The forth part is surface finish cost. The typical forms of finish cost include Zinc Electroplating, Blue Zinc or Clear Zinc Black Zinc Coating,Blue Zinc or Clear Zinc,Acid Zinc,Zinc-cobalt,copper plating, passivation, black phosphating and so on. Finish cost is like the material cost, it is around 0.5USD ~2USD per KG for the plating and heat treatment.Due to the strict environmental protection policy, the cost of electroplating will higher and higher in China.
    The last part is packing&delivery cost. Total delivery cost increase as production increase.We can sort it into three modes of transportation.
  • Air freight
      The unit cost per KG is much higher than other ways of transportation. The good point is that you can send goods to any country within only one week. Let`s take an example that it will take round 15USD/KG from China to North America. Air freight is suitable for small package and urgent delivery.
  • Sea shipment
      It is usually about standard 20ft containers.The dimensional weight of a stamping parts package is crucial to calculate delivery costs. You can measure dimensional weight (also known as DIM weight) by:Length x width x height
Packages exceeding a certain dimensional weight may cause additional fees. The approximate price transport from China to South America is $10,000 per container.
  • Truck shipment
      This mainly apply to the domestic market or neighboring countries,such as Asian countries and North American countries etc.
  • Railway
       It is like sea shipment delivered in containers. However, railway is much more reliable and much faster than sea shipment. It is almost free of bad weather influence . Besides railway is good for some special stamping parts.
    In fact, a good manufacturer will help reduce costs in many ways. If you choose to work with an experienced manufacturer(like @DGkaixiang), you will save more money without any decrease in quality or effectiveness. These five important parts should help anyone in the early stages of estimating stamping costs.

 

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