Understand where the cost comes from before negotiating it.
The fastest way to destroy partner trust is to demand a lower price without understanding the job. The better approach is to identify the actual cost drivers and find a technically credible way to remove them.
Break the quote into the things that can actually change.
Then negotiate from facts instead of treating the partner's total price as a black box.
Feeds, speeds, tool changes, number of operations and machine class.
Programming, fixtures, workholding, first article and changeover.
Stock form, yield, scrap, alloy premium and minimum buys.
Cutters, molds, dies, cavities, electrodes and special gauges.
Heat treat, plating, anodize, painting, inspection and outside process.
Sometimes the best quote uses a different process.
A compact process matrix helps Sales and Sourcing spot when the requested manufacturing method is creating unnecessary cost or lead time.
Four ways to win without simply squeezing the shop.
Better economics should improve the customer offer and preserve a healthy partner relationship.
Use geometry, volume and lead time to challenge the assumed process.
On assemblies, focus DFM effort on the small number of parts dominating total cost.
Use near-term capacity as a negotiation lever when the partner wants the work.
Move repeat winners toward volume pricing or longer-term capacity commitments.