Our Pricing and Quoting ProcessMorgan Humburg
The old adage goes that when designing a project you juggle the constraints of speed, quality, and cost. Our approach to cost and pricing slightly tweaks this formula – by focusing on speed and quality, the cost ultimately works itself out through increased value and cost savings over time. We’ve composed a list of how we approach cost drivers in our quoting process to ultimately provide our clients the most value in the long run.
Our focus on design for manufacturing means that we always review and suggest ways that a product can be improved once it has hit the line.
Labor and Tooling
One of our mottos is “access, not overhead” and this applies to labor and tooling. Through both our factory and partner facilities, clients have access to any machine or process a product requires – but we’ve kept our process lean and strategic so that there are no machines sitting idle that are ultimately factored into overhead in your quote.
Through the TyRex Technology Family, experts in every facet of manufacturing and engineering are only a five minute walk across our factory away. However, each of these entities runs separately from Arctos so that if they’re not needed, their labor and overhead does not translate to your product.
The labor included in your quote is dedicated to finding ways to provide value in any way possible. Our focus on design for manufacturing means that we always review and suggest ways that a product can be improved once it has hit the line. A common refrain we hear is that our clients are being pressed to find 5% cost reductions year over year. Rather than lose that 5% in margin, we will work with you to rethink your product from the ground up, from sourcing to packaging to shipping.
When it comes to materials sourcing, we’ve found that the parts that list for the “cheapest” usually aren’t the cheapest in the long run. Because of this, we’ve invested years in forging partnerships with suppliers that we trust to provide components that won’t require expensive reworks, reorders, or risk running out of stock.
When tasked with multiple projects for the same client, we put our procurement team to work analyzing our clients’ entire product line to see if components can be switched and shared, enabling bulk purchasing of components shared over multiple products. It’s important to note as well that the quote price for your product is just the beginning- we treat your product like our own for the life of the contract and will continue to look for ways to reduce part cost while keeping the same expectation of quality.
When it comes to cost savings, time to market can make all the difference. Knowing this, our team works with our clients’ engineers and purchasing departments as early as possible to begin determining the availability for components. We also conduct time and motion studies on all products to make sure they’re being assembled as efficiently as possible.
As we discussed in a previous article on the Gray Market, knowing when and how to approach resellers for parts to avoid delays and high prices is also an important skill that Arctos has become adept at.
If you’re ready to see how Arctos can better manage the cost drivers of your product, reach out today.