Quoting & Pricing Models
The difference between a profitable and unprofitable job shop often comes down to quoting accuracy. Under-pricing loses money; over-pricing loses customers. Modern quoting uses data-driven cost models that account for cutting time, material, gas consumption, and setup — not just gut-feel estimates.
Quick Answer
The most accurate quoting method combines material cost + cutting time × machine rate + setup charge + margin. Typical machine rates for a 6kW fiber laser: $125–$175/hour (fully loaded cost including depreciation, gas, power, labor, and maintenance). Add 15–30% margin on top. For repeat work, offer 5–10% volume discounts to lock in customers.
Quote Audit Path
Treat every quote as an auditable cost stack, not a single hourly guess. A defensible job-shop quote should preserve the source assumptions for cycle time, assist gas, nesting yield, setup/changeover, and margin so repeat orders can be repriced without rebuilding the estimate from scratch.
1. Convert geometry to quote-ready cycle time
Pull cut length, pierce count, traverse moves, and part quantity from CAM or DXF review. Use the cutting time calculator to sanity-check the production minutes before applying your machine rate.
2. Separate gas and material yield from labor
Nitrogen-heavy stainless and aluminum jobs can lose margin even when cycle time looks profitable. Validate assist gas with the gas flow calculator and sheet utilization with the nesting efficiency calculator.
3. Add setup, programming, and changeover explicitly
High-mix work needs a minimum charge for file cleanup, fixture changes, lens/nozzle checks, first-article inspection, and packaging. Keep setup visible so discounts apply to repeat production, not to one-time engineering work.
4. Run the final margin check before sending
Load material, cycle time, gas, setup, outside finishing, and target margin into the cost estimator. A good quote shows both the sell price and the reason a rush fee, minimum lot charge, or volume break exists.
Pricing Model Comparison
| Model | How It Works | Accuracy | Best For | Risk |
|---|---|---|---|---|
| $/hour flat rate | Fixed rate × estimated hours | Medium | Simple parts, known cycles | Complex parts undercosted |
| $/inch cut length | Rate per inch of cut path | Good | Standard thicknesses | Ignores piercing time |
| $/piercing + $/inch | Per-pierce charge + per-inch cut | Very Good | Complex parts, many holes | Requires CAM data |
| Cycle-time based | Actual NC cycle × machine rate | Excellent | All part types | Requires simulation |
Machine Rate Calculation
Fully Loaded Hourly Cost (6kW Fiber Laser)
| Cost Component | Monthly | Per Hour | % of Total |
|---|---|---|---|
| Machine depreciation (60 mo) | $6,000 | $17.65 | 13% |
| Operator labor (loaded) | $8,500 | $25.00 | 18% |
| Assist gas (N₂ bulk) | $4,000 | $11.76 | 9% |
| Electricity | $2,800 | $8.24 | 6% |
| Consumables (nozzles, lenses) | $2,200 | $6.47 | 5% |
| Maintenance/service | $2,500 | $7.35 | 5% |
| Facility (rent, insurance) | $3,500 | $10.29 | 7% |
| Overhead (admin, software) | $5,000 | $14.71 | 11% |
| Total Loaded Cost | $34,500 | $101.47 | — |
| Sell Rate (30% margin) | — | $131.91 | — |
Based on 340 productive hours/month (two 8-hour shifts, 5 days/week, 85% utilization).
Related Topics
Disclaimer: Cost figures are representative of North American markets in 2025–2026. Actual costs vary by region, utility rates, labor market, and equipment financing terms.