How Much Does Die Cutting Cost? Tooling, Materials & Labor

Industrial die cut orders range from $500 to millions per year, with prices per part from pennies to several hundred(s) of dollars.

In a perfect world, ordering die cut parts would be effortless. However, pricing custom parts is challenging because many factors influence the final cost.  

You might be an expert on your product, but this article will help you understand how die cutting costs vary by material, configuration options, and machine time, so you can use that knowledge to negotiate better order value.

How Much Do Die Cuts Cost?

Die cut orders can range from $500 to millions of dollars per year, while the price per part can range from pennies to hundred(s) of dollars. Every estimate is unique due all of the factors that determine converting quotes.

If you know how these factors work, you can either plan your design and manufacturing process accordingly to reduce costs, or recognize that these costs correlate with critical product features. 

 Factors that Affect Die Cutting Costs 

Tooling, material, and labor costs are critical to running production. You will notice each of them listed in your final die cutting quote.

1. TOOLING COST

Almost every job requires its own unique die to cut the pieces for the desired part. Think about cutting dough with a cookie cutter: you can’t use a star-shaped tool to make gingerbread men.

If your project doesn’t require hard tooling, you may use a laser or digital knife.

• Laser cutting and digital knife cutting can serve as hard tooling alternatives and achieve tighter part tolerances for smaller order quantities. (They also have their uses in unique scenarios.)
  
  

DESIGN COMPLEXITY

• Die cut tools with simple designs cost less than multi-layered, multi-material tools with various holes or slits and tight tolerances.
• Part Geometry encompasses a part's size, shape, functional features, layers, and design intricacies.
• The more complex the part geometry, the more expensive the part.
  
  

CONFIGURATION OPTIONS

One die and one material is the simplest, least-expensive tooling setup for rotary die cutting. Advanced processing methods include:

• Extra lamination layers
• Using multiple materials
• Additional print colors
• Tighter tolerances

Configuration adds up quickly: Say you are cutting a 3-layered stick-to-skin patch for a medical device—each layer could be a unique shape, with no similar profiles, requiring 3 unique tools.

• Reducing the number of materials and simplifying shapes can significantly reduce your costs.
  
  

2. MATERIALS COST

Material costs account for an average of 70-80% of total costs. Oftentimes, materials will have a Minimum Order Quantity (costing thousands of dollars) which determines the minimum quantity of product we must buy. For some applications and startups, this is an enormous financial burden. (Rest assured, Strouse can help you work around suppliers’ MOQ.)

Early in your product’s lifecycle, the amount of material included in the MOQ is often more than what we need to build your order. In these cases, Strouse either factors the MOQ into the total material cost or uses a smaller distributor at a higher price point.

THE PRICE OF DIE CUT MATERIAL WASTE

Every stage of production generates waste, including:

• Set-up tests
• Mining tape used to help peel adhesive layers
• Leftover material from production

Although material waste is inevitable, we still want to reduce setup waste as much as possible. MORE WASTE = LESS VALUE for your dollar, and as your converter, we want to help you stretch your dollar as far as possible.

REDUCING MATERIAL WASTE

Certain materials are more challenging/expensive to process. The type of material you choose might also increase your final price because it may require more advanced processing methods.

Materials like light-sensitive or fully sterile materials require additional setup. If you’re concerned, ask about alternatives that may fit your specifications.

3. LABOR TIME

In converting, labor time typically makes up 20-30% of the final estimate. At Strouse, labor time costs include the machine set-up, testing, production/run time, and breakdown.

• Complex parts are challenging to build, making it tougher to assemble the machine press.
• One job might only need a flatbed press, whereas another may require three rotary dies and a laser.
• Although a simple job might only take an hour to prep, a complicated top-tier job could take 20+ hours in press assembly.

After more than 40 years in the converting industry, Strouse can confidently determine how long it will take to assemble the press so we can get your project up and running.

This setup and assembly process falls under labor costs, and it’s determined by the part geometry's complexity and the production volume (which determines how long the die cut press runs).

ADDITIONAL FACTORS THAT DRIVE COSTS

Tooling, labor, and material costs can be divided even further into the following categories:

Calculating The Price Per Part

At Strouse, die cut production costs are calculated from the following stages:

• Set-up
• Testing
• Breakdown
• Run time

Three of these stages require very hands-on labor from our experienced operators, so we have relatively fixed costs for the time spent on machine set-up, testing, and breakdown, regardless of how many parts you order.

PRICE PER PART AND QUANTITY

You may have wondered, “Why do higher quantities give me a lower price per part?”

The Price Per Part (PPP) mainly depends on set-up costs and the number of units ordered. The more parts we produce, the more you benefit from your initial set-up cost.

For example, let’s say that the labor for set-up, testing, and breakdown (fixed costs) is 5 hours, and you want quotes for 1,000, 10,000, and 100,000 parts.

As a result of the relationship between production volume and fixed costs, a 100,000-part quote will have a much lower PPP than the 1,000-part quote. In short, fixed setup costs get spread across more parts at higher volumes, so your cost per piece drops significantly.

How Packaging Affects Your Price

Packaging prices vary based on quantity, complexity, and customer specifications. Generally speaking, packaging costs are straightforward. The more time that it takes to put your parts into its final packaging, the more it costs.

• • This is variable (e.g., different box, bag, and pouch manufacturers may offer different rates).

2. Multi-step configuration scenarios increase your total packaging costs.

3.  If you dictate the specific number of parts within a stack, box, bag, etc., your price per part will increase.

• • This is because processes can run a lot faster if you can approximate the final count.

  • Ideal for simplifying assembly line processes and overall brand presentation

4. Some material rolls require silicone separators, flute ends, shrink wrap, dividers, and other add-ons.

• • Loose rolls may require packaging additions to keep them stable for handling.
  • Medical parts often require packaging and wrapping that meet cleanliness standards.

Get Started with a Die Cut Quote

Ordering custom products can be overwhelming. Yet, now that you understand how the pricing breakdown works, you can get the most value from your order.

THE STROUSE DIFFERENCE

Unlike many converters, who will accept your specifications and run the product without question, our engineers thoroughly review each project to ensure that we build a functional application.

There is no disconnect between the sales reps quoting jobs and engineers later scrambling to make the project work—what we quote is what we’ll build, and we do the utmost to catch design issues before they cost you time or money.

If you’re looking for a converter who will keep you informed and involved throughout product development and production, get a quote from Strouse. Our team will help optimize your production process while delivering high-quality, sophisticated parts that meet your intended application requirements.

If you have any questions about pricing, check our Learning Center for more information or contact us, and we’ll follow up shortly.

Originally published: November 29, 2022