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Pricing guide for metal fabrication shops

How to price a fabricated metal part

Most underpricing comes from a cost that leaves something out: the packaging, the minutes, the parts that did not come out right. Here is the formula, then one real example worked from start to finish: steel l shelf bracket, which costs $15.61 per part and sells at $22.31.

Updated . Example prices checked on supplier sites the same month.

The formula

  • Cost per part = (materials + packaging + labour + machine time + other batch costs) / parts made
  • Price = cost per part / (1 - margin)

Margin is the share of the price you keep. A 50% margin means the price is twice the cost. A 60% margin means 2.5 times.

A worked example: steel l shelf bracket

Small fab shops often run 10 to 50 of a part at a time. This example makes 20 L-shaped shelf brackets, each from 20 in of 1/4 x 2 in flat bar, cut, welded, ground and painted.

Cost of Steel L shelf bracket, 20 parts
MaterialUsedCost
A36 flat bar 1/4 x 2 in, 20 ft stick$28.56 for 20 ft400 in$47.60
Weld wire, gas, discs and paint$2.86 for 1 piece20$57.20
Labour: 4 h at $35.00/hr$140.00
Time on the machine: 2 h at $25.00/hr$50.00
Setup, 30 minutes once per job$17.50
Total for 20 parts$312.30
Cost per part$15.61
Where the example prices come from
  • A36 flat bar 1/4 x 2 in, 20 ft stick: $28.56 for 20 ft, from Bulk Metal Sales (freight or pickup extra), checked October 4, 2026.
  • MIG wire ER70S-6 .030: $56.10 for 12.5 lb, from Cyberweld, checked October 4, 2026.
  • Shielding gas refill, 80 cu ft: $75.00 for 80 cu ft, a typical local welding gas supplier price. Check yours.
  • Cut-off wheel 4.5 in: $3.15 for 1 piece, from Cyberweld, checked October 4, 2026.
  • Flap disc 4.5 in, 60 grit: $8.90 for 1 piece, from Cyberweld, checked October 4, 2026.
  • Spray enamel, 12 oz can: $8.50 for 1 piece, a typical hardware store price. Check yours.

Prices change and shipping is extra. They are here to make the example real, not as a quote. Put your own prices in the calculator.

Step by step

  1. List what goes into one batch. Write down every material, with the amount you use for one batch of 20 parts, and the packaging for each part.
  2. Price each material from the pack you bought. Divide the pack price by the pack size, then multiply by the amount you used. Change units first so grams go with grams. In the example the materials and packaging come to $104.80.
  3. Add your time. Count every minute: making, cleaning up, packing. 4 h at $35.00 an hour is $140.00.
  4. Add time on the machine. Machines cost money to buy, run and repair. 2 h at $25.00 an hour is $50.00.
  5. Add the other costs of the batch. Setup, 30 minutes once per job: $17.50.
  6. Divide by the parts you made. $312.30 / 20 = $15.61 per part. Use what you really got, not what the recipe promised.
  7. Set the price from the margin you want. Price = cost / (1 - margin). At a 30% margin: $15.61 / 0.70 = $22.31.

Check the wholesale price

Shops that buy wholesale usually pay about half of the shop price. Half of $22.31 is $11.15. That is below the $15.61 cost, so this price only works for direct sales. Raise the price or lower the cost before you sell wholesale.

What metal fabrication shops often leave out

  • The drop. The short end of a stick you cannot use is part of the cost of the parts you cut from it.
  • Consumables. Wire, gas, discs and paint are real money on every part.
  • Setup. Jigs, fixtures and the first part happen once per job. Spread them over the job.
  • Freight. Steel from a bulk seller is cheap per foot, but delivery or pickup is extra.

Try it with your own numbers

The metal fabrication cost calculator starts with this example. Change the prices and amounts to yours and you have your cost and price in a minute. Save it as a recipe in Stockria and the cost stays right when a supplier changes a price.

We set it up for you

Frequently asked questions

How do I price a metal fabrication job?

Add steel, consumables, machine minutes, labour minutes and the setup spread over the parts. That is the cost per part. Divide by 1 minus your margin for the price.

What does steel cost per inch?

Divide the stick price by its length in inches. A $28.56 stick of 20 ft (240 in) is about 12 cents an inch. A part that uses 20 in has about $2.38 of steel.

How does quantity change the price per part?

Setup is paid once, so it shrinks per part as the job grows. Steel, consumables and minutes per part stay the same.

How to Price A Fabricated Metal Part: Formula and Example | Stockria