Professional Cost Estimation in the Manufacturing Industry

Cost estimation is a vital process in the world of manufacturing and production. Its accuracy could be the deciding factor whether your business is bound to make it or not. With my experience in working for a retail company, my boss used to spend days on cost estimation without executing any actual work until the cost estimation process is done. This made me feel how crucial cost estimation is to any business/project. Let us learn the strategies that will help us get on top of cost estimation and make sure we are on the right track towards profitability.

The biggest challenge for a business owner or project manager is to cover all aspects of the business plan at the right preferences within the budget set for it. There may be chances wherein some of the expectations are not met due to budget constraints. This is why controlling costs via cost estimation is very critical to the outcome of businesses and keeping costs at the lowest possible is a must.

Cost estimation is used to make the following products: Garments, Plastics, Electronics, and Branded/Logo Items.

Helpful Tips on Estimating Costing

1. Trust the client/company relationship

Establishing trust between parties is the most important step for a procurement plan and you must work alongside to be cost-effective and at the same time make sure you are sticking to the budget allotted for the project. The most common step by step process for this in any manufacturing company is to map out the production plan at the start of the project based on the marketing calendar. Allot money for specific initiatives and discuss how to cut expenses in some areas to help improve others. This is an effective process to work around the budget and at the same time double executions.


cost estimate introduction - Intrepid Sourcing


2. Highlighting packaging and shipping fees

Before I joined my present company, I worked for a successful manufacturing company as a marketing executive and our very own CEO served as my mentor in there. He always highlighted packaging and shipping fees as vital parts of our cost estimation process. That was when I realized, how big factors these items are towards cost estimation and I have cherished this idea up to this day.

A lot of money can be worked around packaging and shipping processes. You can greatly cut down expenses or reduce costs as long as these aspects are well planned out. For example, you can outsource packaging to other companies at a cheap rate which allows you to save up on machinery expenses. You can also hire courier services to do shipping for you and they can give you discounts as long as you exclusively hire them for such service. The following would have a huge impact on cost estimation depending on your approach.

3. Fewer expenses mean less risk

This is the most underrated tip that people in the manufacturing industry often overlook in project/product cost estimation. When you have fewer variables in your procurement plant then there should be less room for risks. If possible, merge variables or eliminate possible expenditures so that your costing is only focused on the vital parts of the project. Having fewer risks should translate to a better chance at success.

The following tips mentioned above should already give you a good idea on how to do your own project cost estimation. On our next posts, we will further discuss other aspects of manufacturing such as feasibility study and lead time analysis. Our company is determined to help out fellow entrepreneurs in the manufacturing/production industry achieve the best possible success and we look forward to learning from our readers as well.

For more details specifically about what this service is; click here: Further reading on Cost Estimation


Click here if you want to do a cost estimate on White Label products.

Click here if you want to do a cost estimate on Apparel.

Click here if you want to do a cost estimate on Electronics.

Click here if you want to do a cost estimate on Plastics.

We are using cookies to give you the best experience. You can find out more about which cookies we are using or switch them off in privacy settings.
AcceptPrivacy Settings


  • We use cookies

We use cookies

What Are Cookies

As is common practice with almost all professional websites this site uses cookies, which are tiny files that are downloaded to your computer, to improve your experience. This page describes what information they gather, how we use it and why we sometimes need to store these cookies. We will also share how you can prevent these cookies from being stored however this may downgrade or ‘break’ certain elements of the sites functionality.

For more general information on cookies see the Wikipedia article on HTTP Cookies.

How We Use Cookies

We use cookies for a variety of reasons detailed below. Unfortunately in most cases there are no industry standard options for disabling cookies without completely disabling the functionality and features they add to this site. It is recommended that you leave on all cookies if you are not sure whether you need them or not in case they are used to provide a service that you use.

Disabling Cookies

You can prevent the setting of cookies by adjusting the settings on your browser (see your browser Help for how to do this). Be aware that disabling cookies will affect the functionality of this and many other websites that you visit. Disabling cookies will usually result in also disabling certain functionality and features of the this site. Therefore it is recommended that you do not disable cookies.

The Cookies We Set

If you create an account with us then we will use cookies for the management of the signup process and general administration. These cookies will usually be deleted when you log out however in some cases they may remain afterwards to remember your site preferences when logged out.

We use cookies when you are logged in so that we can remember this fact. This prevents you from having to log in every single time you visit a new page. These cookies are typically removed or cleared when you log out to ensure that you can only access restricted features and areas when logged in.

This site offers newsletter or email subscription services and cookies may be used to remember if you are already registered and whether to show certain notifications which might only be valid to subscribed/unsubscribed users.

This site offers e-commerce or payment facilities and some cookies are essential to ensure that your order is remembered between pages so that we can process it properly.

From time to time we offer user surveys and questionnaires to provide you with interesting insights, helpful tools, or to understand our user base more accurately. These surveys may use cookies to remember who has already taken part in a survey or to provide you with accurate results after you change pages.

When you submit data to through a form such as those found on contact pages or comment forms cookies may be set to remember your user details for future correspondence.

Third Party Cookies

In some special cases we also use cookies provided by trusted third parties. The following section details which third party cookies you might encounter through this site.

This site uses Google Analytics which is one of the most widespread and trusted analytics solution on the web for helping us to understand how you use the site and ways that we can improve your experience. These cookies may track things such as how long you spend on the site and the pages that you visit so we can continue to produce engaging content.

For more information on Google Analytics cookies, see the official Google Analytics page.

Third party analytics are used to track and measure usage of this site so that we can continue to produce engaging content. These cookies may track things such as how long you spend on the site or pages you visit which helps us to understand how we can improve the site for you.

From time to time we test new features and make subtle changes to the way that the site is delivered. When we are still testing new features these cookies may be used to ensure that you receive a consistent experience whilst on the site whilst ensuring we understand which optimisations our users appreciate the most.

As we sell products it’s important for us to understand statistics about how many of the visitors to our site actually make a purchase and as such this is the kind of data that these cookies will track. This is important to you as it means that we can accurately make business predictions that allow us to monitor our advertising and product costs to ensure the best possible price.

The Google AdSense service we use to serve advertising uses a DoubleClick cookie to serve more relevant ads across the web and limit the number of times that a given ad is shown to you.

For more information on Google AdSense see the official Google AdSense privacy FAQ.

More Information

Hopefully that has clarified things for you and as was previously mentioned if there is something that you aren’t sure whether you need or not it’s usually safer to leave cookies enabled in case it does interact with one of the features you use on our site.

However if you are still looking for more information then you can contact us through one of our preferred contact methods. This Cookies Policy was created with the help of the