How are the different costs on quotes broken out and calculated?

Some of the values displayed on the quote are the actual costs associated with the production and shipping of the item, while others are calculated based on those actual costs and the original quote request details.

Cost categories

  • Base cost: The manufacturer’s material and manufacturing costs, before markup.
  • Management fee: Your pre-negotiated supply chain management rate.
  • Freight estimate: An estimate of the cost required to ship the item from manufacturer to final destination.
  • Tooling: The cost of print plates and cutting dies required to produce an item the first time it’s ordered.
  • Other fees: Any other fees associated with the production and shipping of the item. This includes duties, custom ink mixing, plate changes, custom pallets, or rush fees.

Calculated costs

  • Landed cost: The per-unit cost of the item with all other recurring costs amortized across the quantity break amount. The only cost excluded from this number is tooling since tooling only needs to be paid for on an item’s first order.
  • First order total: The total estimated all-in cost that you can expect to pay the first time you order this item, which includes tooling.
  • Reorder total: The total estimated all-in cost that you can expect to pay for subsequent orders of this item, which excludes tooling.
  • Savings: The percent savings when comparing the item’s landed cost to the target price provided on the quote request. If no number is displayed, it’s because there was no price target given, or the landed cost does not yield any savings.
  • Annualized savings: The total estimated savings earned over the course of a year at the annual volume provided on the quote request given orders are placed in increments of this quantity break. If no number is displayed, it’s because there was no price target or annual volume given, or the landed cost does not yield any savings.
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