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Powder Coating is the only technical publication devoted to the Powder Coating industry and other green finishing technologies.
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Publication Date: 09/2008
Pages: 5
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Price quoting for custom powder coating

Accuracy of price quotations for custom powder coating application and the often associated additional services will determine if you remain in business or have to close your doors. Many processing variables must be considered when preparing a quotation if your company is to remain viable. The impact of each variable should be determined on a “per-part” basis and reflect your corporate financial expenses and objectives. In addition to your out-of-pocket costs for direct labor and materials associated with the processing of each part, your corporate overhead (burden) must also be included for each part. The markup (pretax profit) over total expenses is your decision, but it must result in a price that is profitable for you and reasonable to your customer. Excessive prices will result in lost potential custom coating orders. Underpricing will adversely impact your financial health. This article discusses these variables and how they have been simplified with personal computers and dedicated software.

As custom powder coaters, you should continually strive to improve your price quoting procedures and the accuracy of each quote. History has taught you that if your quoted prices are excessive, you’ll eventually lose business to a competitor, regardless of your long-standing relationship with a particular customer. If you quote a price for services that doesn’t cover your actual operating costs, you’ll lose money every time you coat any of the associated parts. Regardless of the custom coating business you’ve had in the past, it’s future business that will keep your doors open. Inaccurate price quotes, leading to the loss of future business or profits, will eventually force many custom applicators to close their businesses.

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