Insite on pricing strategy

From: Carol Farrish (
Date: Fri Aug 06 1999 - 01:04:00 EEST

 Hi, List:
I posted an inquiry earlier today about hypothetical pricing for rapid prototypes and for the castings produced from them. Based on the responses that some of you have been kind enough to send, I think I may have asked the question wrong.

I understand that arriving at the price of either component of a metal prototype depends on dimensions, quantity, and many other factors so it is hard to come up with a “ballpark” price. I guess what I am trying to figure out is how to develop an appropriate market price and an appropriate pricing strategy.

If a casting would cost $10 each for a production run where 100 parts are on the setup, the fixed costs are split among 100 parts. We include the cost of the pattern and other costs in the price. For one or two prototypes, adding in the fixed costs would raise the actual cost of a metal part to $500, while the cost of the pattern might be $75 rather than $2.

 Would anyone be willing to share some examples of prices for the RP pattern and then the metal part? Our company is trying to get a handle on the appropriate price we might expect to pay for an RP in resin or plastic and then how much we might expect to pay for the metal casting for one or two pieces. Keep in mind that the hypothetical part size I am using is about the size of a tennis ball.

 If we get into this area and perhaps buy a machine, we need to know how to price. Can anyone point to any articles that might be useful in developing a pricing strategy.

Thanks to anyone who did or will respond to either of the e-mail questions I asked.

Carol Farrish

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