OEM Manufacturing

How OEM Cookware Factories Price Your Order (Cost Anatomy)

Understand the factory’s cost structure and you’ll negotiate the right 5% instead of demanding an impossible 20%.

The cost stack

  1. Materials (50-65%): steel circles, handles, lids, packaging - the biggest lever, tracks commodity prices
  2. Labour (10-18%): pressing, polishing, assembly
  3. Overhead (8-12%): energy, maintenance, compliance
  4. Tooling amortisation: spread over your order quantity
  5. Margin (8-15%): the factory’s profit - this is the honest negotiation zone

Where negotiation works

  • Works: margin (with volume commitments), payment terms, packaging spec, MOQ structure
  • Doesn’t work: demanding below-material-cost pricing (you’ll get substituted materials)

The golden rule

Never squeeze below a sustainable margin. A factory losing money on your order will recover it somewhere you can’t see - usually in your steel grade.

Frequently asked questions

What margin do OEM factories make?

Typically 8-15% on the order. Squeezing below sustainable margin risks material substitution.

Have a cookware project in mind?

We manufacture triply cookware and supply tri-ply circles for OEM, private label and distribution. Tell us your specs - we reply with a quote.