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Drop Forging Cost Analysis

Before our customer place us orders,we have to quote the product first,then they will advise if our price is acceptable.If yes,order will be placed soon.Today,we would like to do cost analysis for drop forgings.

Normally the cost is made up of two sides.One is mould cost,the other is unit cost.As the material of drop forging mould is die steel,so the mould cost is quite high,normally at range of 2000-3000usd.

Unit cost for drop forging include:material cost+forging cost+heat treatment cost+machining cost+surface finish cost+package&shipping cost.

Material cost:Material cost is decided by the material specification,it is calculated according to current material price.Eg:For SS304,the price for each ton is about 6000usd.

Forging cost:In our factory,there are forging presses in different tons,like 300t,400t,630t,1200t,1600t.These equipments are used according to the gross weight of drop forging parts.So the forging cost will be higher if using larger ton forging press.For stainless steel parts in 1kg,the forging cost is about 1.5usd.

Heat treatment cost:The cost of heat treatment is calculated by kilogram.Of course,we will still need to consider the which heat treatment is required.

Machining cost:Cost of machining will be counted by the machining difficulty.The larger the machining diffculty is,the higher the cost will be.

Surface treatment:There are many kinds of surface treatment ways,like colour painting,oil anti-rust,powder coating,black oxidized,ect.So the surface treatment cost deponds on your requirement.

Package&Shipping cost:We could pack drop forgings following customer's demands.Normally we just protect the products with ploybay,and then put in wooden cases.For more careful package,the cost is higher.Shipping cost is counted also.

Pls note all above drop forging cost analysis is based on Ningbo Fly Drop Forge Co.,ltd in Ningbo,China.In other developed counties,it is invalid.

When purchasers send RFQs,it is necessary for them to try their best to share enough information with potential suppliers.Each of the drop forging project are made to meet different companies'requirements.Here are some main points for reference:

The drawings/samples
Drawings in 2D and 3D format are the best way to show suppliers some accurate information,like material,weight,dimensions and maybe other heat treatment and machining requirements.If drawing is not available in this period,we could also quote and manufacture directly according to your sample.

Required quantity
Quantity is also a considering factor for quoting.Large quantity will help you to get lower price.Little batch is not cost-effective.The min quantity of drop forging is 1000pcs.

Target price
Price is important when choosing suppliers,but it does not mean lowest price is your best choice.When you think highly of a potential supplier,but their price is beyond your budget,you should let them know your target price to move on cooperation.

Lead time
Before placing orders,it is also necessary to confirm lead time with your supplier to see whether it is meet your purchasing plan.If time is hurry,you may consider using multiple suppliers at the same time.

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