Comments on: Quoting Method Madness

By: domy w cenie mieszkania

domy w cenie mieszkania — Wed, 28 Dec 2011 21:14:05 +0000

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By: Luciano Stuckemeyer

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By: Eric Kam

Eric Kam — Thu, 29 Jul 2010 08:55:27 +0000

check with Bob Quinn at RCM he has a project underway for something like that too, with some Government funding for Tool and Die revival in Michigan.

http://www.toolanddiefutures.org

By: Stephens

Stephens — Wed, 28 Jul 2010 11:15:47 +0000

hi Eric,

To price / cost the die, you must have A process to quote to.

Period.

I agree on all methods have merit … it is like religion or politics – all are partially right but not a single one is completely right.

Regarding the issue with cost and price – price represents market conditions if you are selling above or below the so-called cost number.

Thanks for reading … I will be posting more on this topic and just might give away a functional version of what I am talking about – something that can be “calibrated” in about 5 minutes.

By: Eric Kam

Eric Kam — Wed, 28 Jul 2010 09:04:43 +0000

Totally agree that the prime cost drivers are the man hours and machine hours, and bulk material.

But at the core of the problem is not the method used to arrive at a NUMBER. BOM, Length of Line, and Even the Ouija board have some merit, since after all we need to predict an uncertain future. How one comes up with the hours of machine time and mass of material when all they have is part data, and only a guess at the process.

Isn’t it CORE to this issue that we confuse the COST with the PRICE? I’ve been running into similar issues regarding our Cost Calculator. Your colleague Jerry Q. and i had a great conversation when we demoed our CostCalculator product and he kept stating that we could not Sell the die at that price, when we agreed for the most part that the hours and the materials may well be in the right ball park.

I have even considered branding it a “LossCalculator” so that when the cost and the price are not in agreement you know the difference is most likely a loss.