Should-Costing: The Competitive Edge for Manufacturers
Should-Costing: Competitive Edge for Manufacturers
by Aileen CaseyIn today's high-pressure manufacturing landscape, precision matters more than ever. From global supply chain volatility to tighter profit margins, job shops and manufacturers are under increasing pressure to quote faster, price smarter, and deliver with confidence. That’s why should-costing with the Competitive Edge for Manufacturers has moved from a niche practice to a competitive necessity.
What Is Should-Costing?
Should-costing is the practice of determining what a part or product “should” cost to make based on material costs, labor, overhead, and machine time. Unlike traditional quoting, which often relies on gut feel or outdated spreadsheets, should-costing is grounded in data, process transparency, and repeatable logic.
When you know what a job should cost, you’re in a stronger position to:
- Quote accurately
- Negotiate confidently
- Protect your margins
- Win more profitable work
Why It Matters Now
In 2025, quoting isn’t just about speed. Buyers expect transparency, especially as reshoring and nearshoring continue to grow. Large OEMs and strategic buyers are no longer satisfied with ballpark pricing they want suppliers who can back up their estimates with real data.
At the same time, costs are changing quickly. Material prices, energy rates, and labor expenses fluctuate. Estimators using static spreadsheets or tribal knowledge are at a disadvantage compared to those with access to robust cost databases and automation tools.
The Costimator® Advantage
For over 40 years, Costimator has helped manufacturers move from guesswork to data-backed quoting by providing:
Built-in cost models for machining, fabrication, welding, assembly, and more
Extensive process libraries backed by decades of industry data
Should-costing capabilities that provide transparency and consistency
Time-saving automation that speeds up the quoting process without sacrificing accuracy
In a recent case study, a mid-size job shop was able to cut its quoting time in half and increase win rates by 30% simply by standardizing on Costimator® and leveraging its should-cost capabilities.
Should-Costing as a Sales Tool
It’s not just about quoting internally it’s about credibility. Imagine sending a quote that breaks down the rationale behind your pricing. It builds trust and positions your shop as a strategic partner, not just another vendor. More and more, smart estimating isn’t just a back-office function it’s a sales advantage.
As manufacturers face tighter deadlines and fiercer competition, the shops that embrace data-driven estimating will lead the pack. Should-costing isn’t just about knowing your numbers it’s about knowing your value.
If you’re ready to stop guessing and start quoting with confidence, it’s time to make should-costing a core part of your process and Costimator® is the tool to help you do it.
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