Should Cost

A should cost estimate is created by researching material, labour, overhead, profit and other costs associated with the manufacturing location to create an accurate estimate. We have a detailed understanding of cost drivers associated with the various manufacturing processes and with a high level of accuracy can determine the optimum /fair price for a product. At times the should cost estimate can be at a more granular level than the supplier and this is the basis for successful negotiation and cost reduction.

We can provide should cost estimate and QAF analysis and let our client’s buyer do the negotiation with the supplier.

We can also support our client’s buyer in commercial and technical negotiations when the product is complex.

We can provide should cost estimates at competitive rates by communicating with our clients via email for simple projects and site visits for more complex projects.

Send us your drawings / sample today for assessment and no obligation quote.

Case Study

Here is an example of an estimate for a simple fabricated part, currently made in made in high cost country (HCC) i.e. UK.

Our estimate has highlighted 31% cost gap / potential for negotiating with existing supplier.

Our estimate has been broken down into the high level cost drivers to assist the buyer in the negotiation with the supplier.

A more granular level cost breakdown can be provided for more complex products.

We can also provide an estimate for sourcing in a low cost country (LCC) with associated investment payback calculations

Demos

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