Cost Estimator (Should-Cost Bands)

Know the fair price before you negotiate.
IndiaUnbox’s Cost Estimator gives you a defensible should-cost for any India-made product—before you send RFQs or place a PO. It breaks the price into transparent building blocks (materials, labor, processes, packaging, overheads, margin) so you can spot savings, set targets, and negotiate with confidence.

What you get

  • Target EXW/FOB price band (min–max) with accuracy tier (Quick ±25%, Scoped ±15%, Validated ±10%).
  • Line-item cost breakdown: materials, yields/scrap, labor (SMV), finishing/processing, packaging, compliance, overheads, factory margin.
  • Key cost drivers & sensitivity: how price moves with copper/brass rate, fabric GSM, finish type, engraving, print passes, plating micron, etc.
  • MOQ effect & scale curves: where break-even quantities sit and how costs step down with volume.
  • Negotiation levers: design tweaks and spec changes that cut cost without hurting function or brand.
  • Downloadable summary (PDF/Excel) + 1-click handoff to FOB→DDP Preview and Lead-Time Guide.

Inputs we need (2–5 minutes)

Common: product name, category/cluster, target qty & cadence, overall dimensions/weight, reference image or drawing, tolerance/finish level, inner/outer packaging, branding method, compliance marks (if any).

Category specifics (examples):

  • Metalware (Moradabad): alloy (brass/aluminium/iron), casting vs. sheet-formed, wall thickness, plating (nickel/chrome/brass/antique), lacquer/powder-coat, welding/lathe/hand-polish steps.
  • Wood (Jodhpur/Saharanpur): species (mango/sheesham/acer), moisture %, joinery type, stain/PU coats, hardware, carving/CNC minutes.
  • Textiles (Panipat/Karur): fabric (cotton/linen/jute/blend), GSM & weave, dye/print technique, stitch count, trims, embroidery area (cm²), wash/finish.
  • Ceramics/Glass: clay/body type, firing cycles, glaze colors, decal coverage, sand-blast/etch area.
  • Paper & Packaging: board type (FBB/KLB/Kraft), caliper (gsm), print passes, lamination/foil/emboss, dieline size.

How we calculate (Should-Cost Model)

Should-Cost (EXW) = Materials + Direct Labor + Process/Finishing + Yield & Scrap + Tooling/Setup (amortized) + Packaging + Compliance/Testing (amortized) + Factory Overheads + Profit Margin

Materials = Σ(Quantity × Unit Rate) × (1 + Scrap %)
— unit rates reference current India market bands for metals, wood, fabrics, board, chemicals, energy.

Direct Labor = (Σ Standard Minutes × Wage/Minute) ÷ Line Efficiency
— SMVs derived from process libraries (polish, buff, stitch, weld, turn, carve).

Process/Finishing = (operation rate × surface area/weight/time)
— e.g., plating by micron & dm², powder-coat by m², embroidery by stitch count.

Overheads = power (kWh) + depreciation + factory admin allocation (category norms).
Profit Margin = category-typical % band adjusted for complexity & MOQ.
FOB Uplift (optional) = EXW + local freight to port + CHA & export docs + port handling.

Typical cost share by category (guidance)

  • Metalware: Materials 55–70% · Labor 10–20% · Finishing 8–15% · Overheads+Margin 10–18%
  • Textiles (cut-and-sew): Materials 40–60% · Labor 15–25% · Printing/Embroidery 5–15% · Overheads+Margin 10–20%
  • Wood furniture: Materials 35–55% · Labor 20–30% · Finish 8–15% · Hardware 3–8% · Overheads+Margin 12–20%
    (Ranges are indicative for planning; live quotes may vary by spec, seasonality, and supplier capability.)

Example (illustrative): Brass Table Candleholder – Moradabad

Spec: Brass (Cu60/Zn40), height 18 cm, wall 2.5 mm, spun + welded, antique brass plate 0.2 µm + clear lacquer; felt base; inner box + master carton. Qty: 1,000 pcs.

  • Materials (brass 0.62 kg/pc @ ₹515/kg avg): ₹319
  • Labor (spin/weld/polish 11 SMV @ ₹1.9/min, 80% eff): ₹26
  • Finishing (antique plate + lacquer by dm²): ₹22
  • Scrap/Yield (3.5%): ₹12
  • Tooling/Setup amortized: ₹6
  • Packaging (inner + label + master share): ₹18
  • Compliance/QA (AQL prep & gauges amortized): ₹4
  • Factory Overheads allocation: ₹21
  • Profit Margin (11%): ₹48
    Should-Cost (EXW): ≈ ₹476/pc
    FOB Uplift (optional): +₹18–₹24/pc (local freight, docs, handling)
    Target band (EXW): ₹455–₹510/pc depending on polish grade and plating tone.

Negotiation levers found:

  • Reduce wall to 2.2 mm where structure allows (-₹18–₹22).
  • Switch lacquer from solvent to water-based if tone acceptable (-₹3–₹5).
  • Combine two welds into one longer seam (-₹2–₹4).
  • Increase lot to 2,500 pcs to amortize setup (-₹6–₹8).

Accuracy tiers

  • Quick (no drawings; photos + dims): ±25%.
  • Scoped (drawing + BOM + finish callouts): ±15%.
  • Validated (pre-quote supplier soundings): ±10%.

What this is not

A binding quote. The Estimator is a decision tool to set target prices and shortlist vendors. Final pricing is confirmed via RFQs, samples, and factory audits.

Best-practice use

  1. Run the estimator to set an EXW target band.
  2. Use the Negotiation levers to refine specs.
  3. Push to FOB→DDP Preview for landed cost.
  4. Lock Lead-Time Guide and book QC windows.
  5. Issue RFQs to IndiaUnbox-vetted suppliers.

Ready to benchmark your product?

Share your spec (photos/drawings are fine). We’ll return a transparent should-cost with actionable levers—usually within one working day for common categories.

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