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Thread: Cost of Manufacturing

  1. #1
    Associate Engineer
    Join Date
    Jun 2022
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    3

    Cost of Manufacturing

    Hello


    I got a quote from two manufacturers/prototypers (CNC machining, injection molding, etc.) from china and USA. The priced my compound bow at $7000. I checked google and it takes $300 a unit to manufacture a compound bow. Archery companies sell compound bows for $2000. Hence I am not sure why my manufacturing costs are so high. I am assuming archery companies don't pay $7000 to manufacture a bow then sell it at $2000. What do the archery companies have that I don't?


    Thank you
    Kingofjong

  2. #2
    Technical Fellow Kelly_Bramble's Avatar
    Join Date
    Feb 2011
    Location
    Bold Springs, GA
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    2,542
    Initial costs to create injection molding tooling and CNC machining programing for unique parts is cost intensive. Manufacturing development like product NRE (Non- Recurring Engineering) is expensive and costings are amortized over the lifecycle on the end product.

    Average Cost per unit = total costs to produce / # of units produced

    Low volume manufacturing can rarely compete with optimized high volume manufacturing.
    Tell me and I forget. Teach me and I remember. Involve me and I learn.

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