Additive Manufacturing Service Bureau Quoting worked example

Finishing Subcontract Cost at 83% billable pass-through markup: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop billable pass-through markup to 83%, then walk the calculation through step by step. Estimate outsourced finishing cost for AM quotes from subcontract quantity, vendor rate, billable capture, and handling markup.

The inputs for this scenario

  • Subcontracted parts or finishing hours: 40 parts or hr (held at the documented default)
  • Vendor finishing rate: 12 $ / part or $ / hr (held at the documented default)
  • Billable pass-through markup: 83 % (the input this scenario stresses; the baseline uses 115)
  • Handling and coordination charge: 95 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Captured subcontract value = subcontracted quantity × vendor rate × billable pass-through.
  • Finishing subcontract quote cost works out to 493 $ at these inputs, and this is the headline figure for the scenario.
  • Vendor finishing rate works out to 12.34 $ / part or $ / hr at these inputs.
  • Captured subcontract value works out to 398 $ at these inputs.
  • Handling/coordination charge works out to 95 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where billable pass-through markup sits at 115% and the headline result is 647 $, this scenario comes in 23.74% below the baseline at 493 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to billable pass-through markup, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It assumes the vendor's rate is firm; if your finishing vendor prices in tiers or adds freight surcharges, those need to be folded into the vendor rate before you run the numbers.

Results at a glance

  • Finishing subcontract quote cost: 493 $ (headline result)
  • Vendor finishing rate: 12.34 $ / part or $ / hr
  • Captured subcontract value: 398 $
  • Handling/coordination charge: 95 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Finishing Subcontract Cost calculator, set billable pass-through markup to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.