Thank you Mr. Die Casting Parts Buyer for placing your $133.65 Purchase Order for 135 aluminum die casting parts, for $0.99 each part.

Unfortunately, I need to increase the price for the parts before I can accept the Purchase Order you sent to my company. You might ask, “Why Do Die Casting Parts Cost So Much?“

You previous supplier, “The Small Die Casting Company” went out of business, because the company owner ran out of money. Most people do not know what it takes to make a die casting part. I don’t usually give this much boring details about why die casting parts cost what they do. Let me explain a little about the cost of die casting manufacturing.

The $.99 part cost Small Die Casting Company charged would cover the cost of the metal in the part, but does not cover these additional manufacturing costs:

• One – two hours labor fitting your insert tool into our mold base.
• Two – three hours labor setting the mold into the die casting machine.
• Gas and electricity cost of four hours breaking down aluminum in a furnace operating at 1,500,000 BTUs.
• Labor and electricity cost producing parts for two hours in a die casing machine using a 50 hp motor.
• Labor cost for two hours of two people filing the excess material from the casting.
• Labor cost of an inspector to verify the parts are produced correctly.
• Labor and materials cost to package the parts for shipment.
• Labor necessary to complete the required inspection and certifications paperwork.
• Additional overhead costs like supervision, health insurance, office staff, vacation, holidays, workers compensation insurance, safety supplies and rent.

Small Die Casting Company did not have a parts inspector, or any supervisors or a toolmaker. The company owner did everything himself and he still ran out of money. I am surprised he was able to stay in business and hang in there trying, as long as he did!

I hope this detailed explanation does not seem harsh to you. Thank you for providing another obvious example of why Small Die Casting Company went out of business. He went out of business because aluminum die casting parts cost more than the price of metal to produce good die casting parts.

Bob Thomas, President
Kinetic Die Casting Company
800-524-8083

Kinetic Die Casting manufactures products like aluminum hardware, and aluminum boxes. If you would like more information on Kinetic Die Casting, please visit our website:Kinetic Die Casting Company