The anatomy of a machined part's price
Every machined part's price is the sum of five buckets. What surprises people is how the proportions shift with quantity:
| Cost bucket | Behaves like | Typical share (small qty) | Typical share (production) |
|---|---|---|---|
| Setup & programming | Fixed per job | 30–60% | 2–10% |
| Machine & labor time | Per part | 20–40% | 40–60% |
| Material (incl. scrap) | Per part | 10–30% | 25–40% |
| Tooling & consumables | Mixed | 2–10% | 3–8% |
| Outside services | Per part | 0–15% | 0–15% |
Why one part costs almost as much as ten
Setup and programming happen once per job regardless of quantity. Fixturing the machine, setting tools, writing and proving the program — call it $190 on a simple job. At quantity one, that part carries all $190. At quantity 100, each part carries $1.90. Nothing about the machining changed; the fixed cost just found more parts to spread across. This is the entire story behind quantity price breaks, and it's why a good quote shows the customer several quantities — the bigger order is often cheaper per part and better for the shop.
The costs people forget
- Load/unload and handling. The spindle isn't the only clock running — an operator's minute costs the same whether chips are flying or not.
- Scrap allowance. Shops run extra parts to cover fallout; that material and time lands in the price.
- Inspection and paperwork. First articles, certs, and tight-tolerance checking are real hours, especially on aerospace and medical work.
- Outside processing logistics. Anodize might cost $2 a part — plus packaging, shipping both ways, and a week of calendar time.
What drives the hourly rate underneath it all
Machine and labor time gets billed at the shop's hourly rate, and that rate isn't arbitrary either — it's machine depreciation, maintenance, power, a burdened operator wage, and the machine's share of the building, divided by honest billable hours. Here's how rates are set, and a free calculator to run your own.
See the whole picture on a real job
The free calculator breaks a job into every bucket above and shows the price-break table instantly. The $29 workbook does it for multi-operation jobs with your real shop rate.
Free Quote Calculator Full Workbook — $29