Worked example

A quote 15% above should-cost: where to negotiate

  1. The verdict

    The practice part (GJS 400-15 bracket, 8 kg, 2,000 pcs/year) is quoted at €2.35/kg. Should-cost €2.05/kg: the quote is 15% above, €0.30/kg, €4,791 a year. CastCalc drafts the request for the supplier's cost breakdown.

  2. The breakdown

    Supplier breakdown versus should-cost, EUR per kg
    BlockShouldSupplierGap
    Energy0.320.45+0.13
    Overhead0.260.36+0.10
    Metal0.590.62+0.03
    Other blocks0.880.92+0.04
  3. Negotiate here first

    Energy: ask for their price per kWh and kWh per kg. Overhead: ask what is in it; it should fall as volume rises. Log the final price: the saving is counted in Savings proven.

Supplier breakdown is an example; gaps and hints are CastCalc's output for these numbers.

What it is worth

What gaps like this add up to

Quote check · portfolio

One part, 15% above should-cost€4,791 / year
20 parts like this≈ €96,000 / year

The practice part: quoted €2.35/kg, should-cost €2.05/kg, 8 kg, 2,000 pieces a year.

Price increase · season

Claimed / justified by market data8% / 3%
On €2M annual spend€100,000 / year

Not paid when you accept only the justified part: (8% − 3%) × €2M.

Illustrative examples. Your results depend on your parts, suppliers and market data.

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See it

CastCalc 1.9

Sample account with fictional parts and suppliers. Click a screen to enlarge.

CastCalc quote check: the verdict 'This quote is 15% (€0.30/kg, €4,791/yr) above should-cost' and the should-cost per cost block
Is this quote fair? The gap per kg, per part and per year, block by block.
CastCalc dashboard: savings identified this year, spend tracked and the average gap of supplier quotes to should-cost
Dashboard. Savings this year, spend tracked, average gap of your quotes.
CastCalc Savings proven: total savings per year split into price increases avoided and negotiated savings, per supplier and year
Savings proven. Every challenge and negotiation, as a report for management.