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Guide · batch size

How quantity changes a part's price

Short answer: each order pays its fixed costs once (programming, setup, tooling), spread over the quantity, then a variable cost per part. Hence the formula published by QuoteBuddy: unit cost = fixed cost ÷ quantity + variable cost. In its example, the same part sells for $196.92 as a one-off and $14.15 at 100.

By the RFQdecoder team · updated 27 September 2026

What formula links quantity and price?

Unit cost = fixed cost ÷ quantity + variable cost per part
Unit price = unit cost ÷ (1 − margin)
Floor = variable cost ÷ (1 − margin), reached as quantity grows very large

Fixed costs do not change with quantity: programming, machine setup, first-article inspection. Their share per part is what shrinks as the batch grows.

Published example: $120 setup, $8 per part, 35% margin

QuoteBuddy takes 2 hours of programming and setup at $60 an hour, so $120 of fixed cost, and $8 of variable cost per part.

QuantitySetup per partVariableUnit costUnit price
1$120.00$8.00$128.00$196.92
10$12.00$8.00$20.00$30.77
25$4.80$8.00$12.80$19.69
50$2.40$8.00$10.40$16.00
100$1.20$8.00$9.20$14.15
250$0.48$8.00$8.48$13.05

Published figures, checked. The price tends to $12.31, variable cost plus margin, whatever the quantity.

Same effect on a sheet metal part

On the steel enclosure published by QuoteBuddy, laser and brake setups weigh €127.50 for the batch. Spread over 25 parts, the enclosure costs €70.70; ordered alone, it costs €193.10, by our calculation from the published figures.

How do you set a minimum order quantity?

  • Setup-to-value ratio: refuse jobs where fixed cost is more than about 40% of the total order value.
  • Minimum order value: for example, no order quoted under 500.
  • Strategic exceptions: go below the minimum for a new customer or key account, on purpose.
  • 3 to 5 price breaks: for example 1, 10, 25, 50, 100, 250 parts, with a constant margin.

Source: QuoteBuddy.

How can you reduce the cost?

  • Group needs into one order rather than several small ones.
  • Ask for several price breaks in the same RFQ.
  • Use blanket orders: one batch made, deliveries spread out.
  • Standardise parts to share setups and tooling.
  • Reuse an existing program for repeat orders.

What should you check in a quote?

  • The fixed costs shown apart from the unit price.
  • The quantity breaks and the price of each.
  • The minimum order quantity or minimum order value.
  • What is charged again on every order: programming, setup, first article.
  • The margin applied, constant or not across breaks.

Sources

  • QuoteBuddy, “MOQ and Price Breaks: Building Quantity Tiers Into Your Quote”, 3 August 2026.
  • QuoteBuddy, “Sheet Metal Fabrication Cost Estimation: The 6 Cost Blocks”, 5 September 2026.

Frequently asked questions

Because fixed costs, programming, setup, tooling, are paid once per order and spread over more parts. Only the variable cost stays the same per part.

QuoteBuddy publishes: unit cost = fixed cost ÷ quantity + variable cost per part, then unit price = unit cost ÷ (1 − margin).

In QuoteBuddy’s example, with $120 of setup and $8 per part, the part sells for $196.92 as a one-off, $30.77 at 10 and $14.15 at 100.

QuoteBuddy lists three methods: refuse if fixed cost exceeds about 40% of the order value, set a minimum order value, or make deliberate exceptions for a new customer.

QuoteBuddy recommends 3 to 5 breaks, for example 1, 10, 25, 50, 100 and 250 parts, with a constant margin from one break to the next.

See the batch effect on your part

Upload your PDF, DXF or STEP drawing: fixed and variable costs shown apart, price recalculated for every quantity.