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
- Materials (50-65%): steel circles, handles, lids, packaging - the biggest lever, tracks commodity prices
- Labour (10-18%): pressing, polishing, assembly
- Overhead (8-12%): energy, maintenance, compliance
- Tooling amortisation: spread over your order quantity
- 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.