GlossaryKind of term: Cost and economicsBudgetary price
What is a budgetary price?
A budgetary price is a high-level indication without a full estimate, so the customer can see whether a part roughly fits the budget.
It is also called a budgetary quote or a rough order of magnitude, and is often requested at the design stage, before the drawing is final. You work it out at a high level, from stock material, an estimated machining time, finishing, setup and programming, without a detailed route. It is meant as an indication, not an offer; whether it binds you legally depends on the wording and the terms, not on the label alone.
How does a budgetary price work in practice?
A budgetary price takes less estimating time, but the figure sticks and the caveat often does not. If the quote later comes out higher because of a tight tolerance, an extra setup or another material, you have to explain the gap. So state what it is based on: material, quantity, the tolerances and finishing you assumed, and the status of the drawing. In the full estimate you can then show, assumption by assumption, what changed. A range instead of a single figure also makes the uncertainty visible.
What is a budgetary price often confused with?
A budgetary price is not a quote: a quote is an offer the customer can accept, a budgetary price an indication. Nor is it a target price: the budgetary price comes from you, the target price from the customer. And an instant quote comes from a portal's pricing model, a budgetary price from your own rough estimate.
How do you see a budgetary price in Blake?
In Blake a first price is an estimate like any other: material, machining, finishing, setup and programming as separate lines, each with its inputs. The result is labelled as an estimate, so what the figure rested on stays visible. More on estimating.
Frequently asked questions
Is a budgetary quote binding?
It is not meant to be, but that depends on the wording and your terms. Call it a budgetary price and not an offer, make it subject to the final drawing, and state material, quantity and assumptions. If in doubt, have the wording checked legally.
How do I give a quick budgetary price for a machined part?
Work at a high level: block size and material, an estimated machining time per setup, finishing, and setup and programming. Record what you based it on, so the full estimate can pick up from there and show what changed.