How to Calculate Injection Mold Quotation?

Injection Mold are typically expensive, and each mold has a unique characteristic. Since mold price vary widely and it is challenging to establish a single mold price guideline, evaluating molds can be challenging at times. The Injection Mold Quotation is estimated in practice largely based on experience.

1. Using a proportional coefficient

The Injection Mold Quotation is made up of these parts：

Mould Price = Material Fee + Design Fee + Processing Fee + Profit + Test Fee + Costly Packaging and Transportation + VAT 

Among them, the material fee (including materials and standard parts) accounts for about 30% of the total mold cost; the design fee accounts for about 5% of the total mold cost; the processing fee (including management fee) and profit account for about 40%- 50% of the total mold cost. For the mold trial fee, large and medium-sized molds can be controlled at about 3%, and small precision molds can be controlled at about 5%. Packaging and transportation costs can be calculated according to actual or 3%.  VAT accounts for 17% of the total mold price.2. Method of material coefficient.

2. Material coefficient formula

According to the mold size and material price, it is estimated by this formula:

                                                                  Mold Cost = (3–4) Material Cost

The size of the coefficient is determined according to the precision and complexity of the mold. The price of the mold with the lateral core pulling mechanism (including the inclined push rod) is at least 4 times the material cost.

3. Injection Mold Quotation

*Complete the Injection Mold Quotation

After the injection mold quotation is estimated, it is generally commissioned to quote in the form of a quotation. The main contents of the quotation are mold quotation, cycle, required mold times (life), technical requirements and conditions for molds, payment methods, and settlement methods, and warranty period.

Generally speaking, according to market conditions, customer psychology, competitors, status, and other factors, conduct a comprehensive analysis, properly organize the valuation, and add 10% to 30% based on the valuation to make the first injection mold quotation. After bargaining, the injection mold quotation can be lowered according to the actual situation.

However, when the negotiated injection mold quotation is lower than 10% of the estimated price, it is necessary to re-improve and refine the estimate of the mold. Under the condition of ensuring that the cost is guaranteed, the mold processing contract is signed, and the injection mold quatation is finally determined.

*The correlation between the mold’s actual price and its predicted price

The Injection Mold Quotation is often not the final price of the mold. The injection mold quotation is strategic. Whether it is correct or not directly affects the price of the mold, affects the profit of the mold, and affects the level of mold production technology management used. It is the most important and successful manifestation of mold enterprise management!

*The relationship between Injection Mold Price and Injection Mold Quotation

The mold price is the price approved by both parties and signed on the contract. The price of the mold formed at this time may be higher or lower than the estimated price, but it is usually lower than the quoted price. When the negotiated mold price is lower than the breakeven price of the mold, it is necessary to re-revision the mold requirements, conditions, plans, etc., to reduce some requirements to reduce the mold cost. After re-estimating, the contract price for the mold is signed.

It should be pointed out that molds are special products with high technological content and should not be used to cater to customers at low prices or even at a loss. Instead, we should aim for high quality and a good price and put the quality, accuracy, and life of the mold in the first place. We should not take the mold price too seriously, otherwise, it will easily lead to misleading actions. Pursuing the low price of the mold, it is more difficult to ensure the quality, accuracy, and life of the mold. Cheap and inferior quality is generally not what the mold industry does.

However, when mold manufacturing and product development and production are the same accounting unit or have economic interests, in this case, the mold price should be quoted at its cost price. The valuation of the mold only estimates the basic cost price of the mold, and other costs and profits are not considered for the time being. A certain share of the production profit of the product will be extracted as compensation after the mold is put into production. However, the injection mold quotation at this time cannot be used as the real mold price, but only as the development cost of the mold in the early stage.

In the future, once the product is successfully developed and profits are generated, the added value of the mold fee should be extracted and returned to the mold manufacturing unit. The two items are combined to form the price of the mold. At this time, the price of the mold formed may be higher than that in the first case. The mold price, and even the high rate of return, is several times or dozens of times the original normal mold price. Of course, it is also possible that the rate of return is 0.

*The regional and time differences in mold prices

The valuation and price of molds have different connotations in various enterprises, regions, and countries, in different periods, and in different environments. That is, there are regional differences and time differences. Why is there a price difference?

On the one hand, the mold manufacturing conditions of each enterprise, region, and country differ, as do the process, technology, personnel concept, consumption level, and other factors, all of which affect mold cost. Estimates such as profit targets are different, resulting in different mold price differences.

Generally, in more developed areas or large-scale mold enterprises with high technology content, more advanced equipment investment, and relatively standardized large-scale mold enterprises, their goal is high quality and high price, while in some areas with low consumption levels, or low technology content,

For small and medium-sized mold enterprises with less equipment investment, the relative estimated mold price is lower. On the other hand, there is still a time difference in the price of the mold, which means poor timeliness. Different time requirements result in different mold prices. This aging difference has two aspects: first, a pair of molds have different prices at different times; second, different mold manufacturing cycles have different prices.