Estimating final product price before it's designed/fabbed

[jkdrummer]

Ok, our products are tools for aviation. We always we get customers who want a cost estimate of the new tools which have yet to be designed. We can understand that they need this to estimate their budgets, but we don't have prototype costs yet which we use to estimate/determine the final tool price.

So are there any methods to give a better ball park figure? Since we don't fab these final products, our licensees do, our ability to estimate final price are not very good. Any tips?

 

[berkshire]

Interpolate based on past experience.
Most aircraft require the same basic components. Whilst manufacturing methods may change, the differences are not that radical.
Sheet metal parts require the same types of tools.
CNC machined parts do not change machines that much, and when they do, the new machines are quicker, and sometimes better.
Composite parts, although the new kid on the block, have been around since the 1970's there is a wealth of data on producing them, sometimes it is proprietory.
B.E.

 

[geesamand]

In my company we make custom versions regularly. This is a commercial question as much as it is technical.

Our approach is if the customer wants accurate pricing, we need time to pre-engineer and create drawings with enough accuracy for our vendors to estimate cost and lead time. As long as the custom product is made from variations of existing components this can be as simple as using white tape and a pen to ensure the estimating drawing has the right materials, features, finishes, and sizes. We encourage vendors to think accurately because accurate estimates yield future sales for all of us.

Of course if your new designs cannot be constructed using basic variations of existing components, you will have to invest much more pre-engineering time.

David