Industrial Equipment, Machinery & Capital Goods worked example

Custom Option Cost at 86% option adoption or quote share: a worked example

Push option adoption or quote share up to 86% and the picture changes. This example computes every intermediate figure at that operating point. Use it when pricing nonstandard guards, controls, tooling, motors, drives, sensors, documentation, or customer requested features.

The inputs for this scenario

  • Machines with the custom option: 6 machines (unchanged)
  • Option cost per machine: 18,500 $ / machine (unchanged)
  • Option adoption or quote share: 86 % (raised for this scenario; the documented default is 75)
  • Fixed option design and validation cost: 22,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable custom option cost = machines with the custom option × option cost per machine × option adoption or quote share) to the inputs above produces each figure below.
  • At this operating point the engine returns 117,460 $ for total custom option cost, the number this scenario is built around.
  • At this operating point the engine returns 19,577 $ / machine for option cost per machine.
  • At this operating point the engine returns 95,460 $ for variable custom option cost.
  • At this operating point the engine returns 22,000 $ for fixed option design and validation cost.

How this compares with the baseline

  • Against the tool's baseline example, where option adoption or quote share sits at 75% and the headline result is 105,250 $, this scenario comes in 11.6% above the baseline at 117,460 $.
  • It computes the total cost of a custom machine option by combining adoption-weighted per-machine cost with the fixed design and validation spend. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total custom option cost: 117,460 $ (headline result)
  • Option cost per machine: 19,577 $ / machine
  • Variable custom option cost: 95,460 $
  • Fixed option design and validation cost: 22,000 $

Run it with your numbers

  • Every input above is editable in the live Custom Option Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.