GlossaryKind of term: Cost and economicsQuantity break
What is a quantity break?
A quantity break gives a price per part at several quantities, such as 10, 25 and 50 off, so the customer sees what quantity does to the price.
A quantity break is a set of quantities with a price per part at each. Customers ask for one to decide how many to order or to plan call-offs. How you build it is a choice: recalculated from cost at each quantity, or as a discount on one base price. A break built on cost shows what each quantity is estimated to cost to make.
What changes per quantity in a quantity break?
In a cost-based break, what mainly changes per quantity is the share of per-batch costs: setup, and programming or a fixture if you spread those over the order. More can change. Material works out differently per quantity through stock lengths, saw losses and minimum purchase quantities. Subcontractors often charge a minimum per lot. At higher quantities a different route can pay off, such as several parts per setup, a bar feeder or another machine. As quantity rises, the cost per part approaches the costs that stay per part, as long as the route does not change.
How does a quantity break work in practice?
A break made by taking a fixed percentage off the price for the smallest quantity does not follow cost: depending on the ratio of per-batch to per-part cost, it comes out too high at some quantities and too low at others. Pick quantities that match what the customer is likely to order; quantities nobody orders cost calculation time and add nothing. Keep any commercial discount apart from the cost build-up.
What is a quantity break often confused with?
A quantity break is not a discount: the price per part falls because per-batch costs spread over more parts, not because you give something away, unless you decide to. Nor is it batch size: the break is the set of quantities you price, batch size the number you make per run.
How do you see a quantity break in Blake?
In Blake each requested quantity gets its own calculation and a cost estimate per piece. Quote versions are issued as PDF, with CSV and JSON export. More on estimating.
Frequently asked questions
Why does the price per part drop at higher quantities?
Because per-batch costs such as setup are spread over more parts. Material purchasing and a different route can also play a part at higher quantities. Machining time per part does not change as long as the route stays the same.
How many quantities go in a break?
Usually two to four, chosen around what the customer is likely to take. More quantities give more choice, but each needs its own calculation and has to be one you can deliver.
Does the customer see the cost per quantity?
Usually not: the customer receives the selling price per quantity on the quote. Cost per quantity is internal information for your own decisions and negotiation.