Custom Seal Quote Estimator Worksheet
Custom seals are quoted on small lots where tooling and setup swing the unit price. This worksheet rolls material, machine time, scrap, setup and margin into unit and extended price for each line and shows the blended margin for the whole quote.
| Seal / part | Material | Quantity | Material cost / pc | Machine/press min / pc | Rate / hr | Setup + tooling | Scrap % | Unit cost | Target margin % | Unit price | Extended cost | Extended price | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$1 | $1 | $1,542 | $2,373 | ||||||||||
$13 | $22 | $3,374 | $5,623 | ||||||||||
$4 | $6 | $3,537 | $5,705 | ||||||||||
$4 | $6 | $2,976 | $5,131 | ||||||||||
$5 | $8 | $2,636 | $4,119 |
Unit cost = (material + machine minutes / 60 x rate) x (1 + scrap) + setup / quantity. Unit price = unit cost / (1 - margin), so margin is on price, not on cost. Replace the example rates and costs with your own burdened rates; these values are illustrative.
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How to use it
Add one row per seal or part. Enter the quantity, material cost per piece, machine or press minutes per piece, the burdened hourly rate, one-time setup or tooling, scrap percentage and the target margin. The worksheet calculates unit cost, unit price and extended totals, and the summary shows blended gross margin and average price per piece. Change quantity on a row to see how setup amortisation moves the price.
- Use a fully burdened machine rate that includes labor, overhead and depreciation.
- Enter tooling as one-time cost and let the quantity amortise it.
- Duplicate a row at different quantities to build a price-break table.
The costing logic
Unit cost = (material + machine minutes / 60 x rate) x (1 + scrap%) + setup / quantity. Scrap is applied to variable cost so yield loss is paid for by the part that survives. Setup and tooling are divided by the lot so small runs carry more. Price is cost divided by (1 minus margin), which gives a true margin on price; adding a percentage markup to cost gives a lower margin than people expect. For example a 35 percent markup on cost is only a 26 percent margin.
Reading the output
Look at the lines with the lowest margin after setup. Short runs of machined PTFE or lip seals are usually dominated by machine time, while molded elastomer jobs are dominated by tooling and compound cost. Blended margin is weighted by extended price, so one large low-margin line can pull the total down even when the rest look healthy. Use the price per piece at several quantities as the basis for a break table.
Common mistakes
The usual errors are leaving out setup on repeat orders, ignoring scrap on expensive filled PTFE stock, and using a standard rate that omits inspection and secondary operations such as trimming, post-cure, cleaning and packaging. Add those as extra rows or fold them into the machine minutes. Also check material price validity dates; compound and PTFE resin prices move, and a quote stale by a quarter can erase the margin.
Frequently Asked Questions
How do you calculate unit cost for a custom seal?
Add material cost to machine or press minutes divided by 60 times the hourly rate, apply the scrap percentage, then add one-time setup or tooling divided by the order quantity. That gives unit cost before margin.
What is the difference between margin and markup?
Margin is profit as a percentage of price, markup is profit as a percentage of cost. A 35 percent markup gives a 25.9 percent margin. This worksheet takes margin and divides cost by one minus margin, so the entered margin is what you earn on price.
How should I handle tooling for molded seals?
Enter mould or tooling cost as one-time setup on the first quote and let it spread over the quantity. For repeat orders where the customer has paid for the tool, set tooling to zero and include only the per-lot setup. Quote tooling separately if policy requires.
Can I export the quote?
Yes. The worksheet exports to Excel, CSV and PDF with the calculated unit price, extended price and totals, so you can paste it into a formal quotation or load it into your ERP quote screen.
If your estimators rebuild these quotes by hand from ERP item and routing data, we can show how a private quoting assistant fills the same columns from your own history without exposing it outside your network.
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