RFQ template and pricing guide for processed steel slitting and cut-to-length

This RFQ template and pricing guide for processed steel slitting and cut-to-length is a bottom-funnel playbook: use it to identify cost drivers, speed quotes, and produce repeatable, defensible bids for slitting and cut‑to‑length work. The first paragraphs walk you through what to capture on an RFQ, the math for setup and yield, and a fast-quote checklist so you can respond to requests quickly.

1. TL;DR: What this guide delivers

This section summarizes the outcome: a ready-to-use RFQ template, a cost-driver checklist, quick calculators and two annotated sample quotes. Think of this as your slitting and cut-to-length steel RFQ pricing guide — a concise playbook to shorten quote turnaround and avoid common price erosion points. The goal is to give procurement and sales teams a practical, repeatable method to evaluate and compare processed steel RFQs.

2. Who should use this RFQ template

This RFQ template and pricing guide is designed for buyers placing slitting or CTL work and for job shop salespeople preparing quotes. Typical users include metal service centers, fabricators, contractors with small-run needs, and procurement specialists evaluating multiple suppliers against order minimums and lead times. If you frequently quote custom tolerances, special packaging or short runs, this guide helps set expectations and reduce back-and-forth.

3. At-a-glance RFQ template: required fields and examples

Include the following minimum fields on every RFQ so suppliers can price consistently: material grade, coil weight, OD/ID, slit widths, cut lengths, tolerance band, quantity (lbs or pieces), required packaging, destination ZIP (for freight), requested lead time, and attached drawings or specs. This section provides a filled example for a slitting job and shows how those inputs feed pricing and setup decisions.

For quick use, download the processed steel RFQ and pricing template for slitting & cut-to-length and populate these fields for each request — it reduces ambiguity and speeds vendor responses.

Template fields explained (what to ask for and why) — RFQ template and pricing guide for processed steel slitting and cut-to-length

Each field on the RFQ impacts price: material grade sets base cost, slit width and number of cuts affect machine time and knife wear, and tolerance bands determine inspection and scrap risk. Asking for coil ID/OD, surface finish, and whether the coil is skidded or banded prevents surprise handling fees. Include sample dimensions to make yield math straightforward. This section pulls together the RFQ template and pricing guide for processed steel slitting and cut-to-length to explain each field’s impact in plain terms.

How to attach drawings/specs for clarity

Attach one PDF with a cover sheet listing critical dimensions, tolerance callouts, and finish requirements. Include a simple parts drawing with overall length/width, bend or chamfer needs, and a note about acceptable scrap. Clear specs reduce clarification cycles and speed quoting.

4. Core cost drivers: a high-level checklist

Use this checklist to break a quote into predictable line items: material, knife setup and changeover, run-time (machine hours), yield loss and scrap, tolerances (inspection), packaging/handling, freight and accessorials, and margin. Identifying each piece keeps quotes transparent and easier to defend during negotiations.

Material grade and its unit-cost impact

Material grade often dominates the per-pound price. Higher-alloy steels, coated materials, and specialty tempers increase both base cost and processing difficulty, so flag grade early on the RFQ.

Machine time, labor and hourly rates

Translate machine cycle rates and labor burden into per-piece or per-pound run charges. Document assumed run speeds in the quote so customers understand how throughput affects price and lead time.

5. Knife setup and changeover economics

Knife setup and changeover costs can convert a tight-margin job into a loss. Capture setup as a fixed line item or amortize it across minimums. Be explicit on RFQs about the number of knife changes expected and whether repeat runs will reuse tooling — these details determine whether to apply a knife setup fee or a per-pound surcharge.

If you need a step-by-step reference, see How to calculate knife setup and changeover fees for steel slitting RFQs to anchor your assumptions when building quotes.

Step-by-step: calculating a knife setup fee

Estimate setup hours * hourly rate + tooling cost + expected break‑in scrap value. For example, a 2-hour setup at $80/hr plus $150 tooling and 50 lbs scrap valued at material cost yields a setup fee you can present as a flat charge or distribute across the run. That simple knife setup fee calculation makes the logic auditable to customers and sales teams.

Amortizing changeover across units and runs

When quoting recurring runs, amortize setup over expected order frequency. If the customer plans repeat orders, offer a discounted setup recovery per run and use contract terms to lock in amortization assumptions.

6. Yield loss, scrap math and worked examples

Yield loss is the hidden cost that often surprises buyers. Calculate yield as shipped pounds divided by input pounds. Include trim loss, edge discard, and scrap from setup in your math to show true per-unit cost. Demonstrating this calculation on the RFQ builds buyer trust and justifies scrap-related charges.

This guide includes clear yield loss and scrap percentage math so estimators can justify scrap allowances on quotes and show how scrap affects per-unit pricing.

Example: 2-coil slitting job — step-by-step yield calculation

Walk through input coil weights, expected slit widths, edge trim and kerf loss to arrive at shipped pounds. Show how scrap pounds inflate per-pound cost and include the scrap percentage in your quote narrative so buyers can compare apples-to-apples.

How yield changes with slit width, kerf, and edge trim

Narrow slit widths increase the number of cuts and can raise trim loss per coil; larger slit sets can be more efficient but may reduce usable yield if customer tolerances are tight. Discuss trade-offs with customers when yield is a key cost driver. For a practical comparison, see Slitting vs cut-to-length pricing: how tolerances, yield loss and minimums affect quotes for guidance on trade-offs between throughput and usable yield.

7. Tolerance-driven cost curves: pricing by tolerance band

Define tolerance bands (e.g., standard, tight, ultra-tight) and attach a price premium for each band. Tighter tolerances require slower run speeds, more inspection, and higher scrap risk — all justified reasons for a tolerance premium.

When to charge a tolerance premium (examples and thresholds)

Use simple thresholds such as ±0.010″ for standard and ±0.005″ for tight. For each tighter band, apply a percentage markup or a flat per-pound surcharge; document thresholds on the RFQ to avoid later disputes.

8. Handling, packaging and protective adders

Packaging choices (coil cradles, edge protectors, interleaving, waterproofing) affect both price and freight eligibility. Specify packaging options on the RFQ and price them as optional adders so customers can decide trade-offs between protection and cost.

Pricing rules for packaging and special handling

Offer flat fees for common packaging and per-pound pricing for labor-intensive options. For custom packaging, set a minimum charge to cover setup and material costs.

Labeling, certification, and paperwork fees

Include optional fees for traceability, material certificates, or special documentation. Listing these as line items keeps base price comparisons straightforward.

9. Minimums and small-run surcharges

Set clear order minimums and a small-run surcharge schedule to avoid taking unprofitable jobs. For small runs under a defined weight or piece count, apply a flat surcharge, a per-pound premium, or a combination depending on processing and handling overheads.

Rules for calculating small-run surcharges

Typical approaches: flat fee per order, percentage of job value, or per-pound incremental surcharge. Pick the model that best reflects your fixed costs and publish it on quotes to reduce negotiation time. For ultra-small jobs, refer to the Quick RFQ checklist to quote small-run cut-to-length steel orders under 1,000 lbs to standardize pricing and SLA expectations.

10. Freight, transit and accessorial impacts on final price

Freight terms and accessorials can shift landed cost significantly. Include destination ZIP on the RFQ so carriers can provide accurate rates and so you can disclose dimensional weight, liftgate, inside delivery or other accessorials that affect final price.

Make sure your quotes call out freight, dimensional weight and accessorial charges explicitly so buyers see the full landed cost rather than an artificially low base price.

Quoting freight: FOB, prepaid, collect and pass-through models

Decide whether freight is included, prepaid with surcharge, or billed collect. Each option affects competitiveness and risk allocation — state your default approach and show freight as a separate line item where possible.

Common accessorials and how to price them

Common extras include liftgate, residential delivery, limited access, and reconsignment. Price them as pass-through items or include modest handling fees if you manage coordination and paperwork.

11. Fast-quote process: reduce RFQ cycle time

Shorten quote turnaround by standardizing inputs, using a short qualification checklist and deploying a pricing calculator. Capture the minimum viable data on first contact so you can issue a preliminary price within SLA targets and refine after receiving drawings.

8-step fast-quote checklist (what to capture in the first 2 minutes)

• Material grade and finish
• Quantity (lbs or pieces)
• Slit widths / cut lengths
• Tolerance band
• Required lead time
• Packaging needs
• Destination ZIP (for freight)
• Are drawings attached?

Use this checklist as the core of your CRM intake form so the team can apply the Quick RFQ checklist to quote small-run cut-to-length steel orders under 1,000 lbs and hit response SLAs consistently.

Automation: calculators, templates and CRM integration

Integrate a simple pricing calculator into your CRM to auto-populate standard surcharges and setup amortization. Automating repetitive math reduces human error and accelerates quote delivery. This article also explains How to price RFQs for processed steel: slitting, CTL and handling in the context of automation — what fields to capture and how to expose assumptions to customers.

12. Pricing calculator walkthrough and sensitivity analysis

A practical pricing calculator takes inputs (material cost, setup hours, run rate, expected yield, packaging, freight) and outputs unit cost and margin. Include a downloadable worksheet as an appendix so sales teams can run scenarios on the fly.

Example worksheet: 1,000 lb small-run slitting quote

Populate inputs with material cost, setup fee, expected scrap %, packaging and freight. The worksheet shows how a small change in yield or tolerance can swing margin and whether to accept the job or request higher volume.

Sensitivity: what moves the margin the most?

Yield and material price volatility typically have the largest impact, followed by setup amortization for small runs. Use sensitivity tables to show customers which levers reduce cost (e.g., relaxing tolerances, increasing order size).

13. Two annotated sample RFQs (slitting and cut-to-length)

Annotated sample quotes demonstrate how to present line-item math and document assumptions. Use these templates when submitting formal proposals so buyers can compare charges transparently.

Sample 1: Small-run slitting quote with breakdown

Include base material, knife setup fee, per-pound run charge, scrap recovery, packaging, and freight as separate lines. Annotate each line explaining the driver (e.g., setup time, tooling wear, expected scrap pounds).

Sample 2: Repeat CTL production quote with volume discount

Show how setup amortization is reduced with recurring orders and include a suggested contract term that locks in price tiers and minimum run notices to protect margin while offering volume-based discounts.

14. Appendix: quick formulas, checklist and glossary

The appendix provides copy/paste formulas, a printable RFQ checklist and short definitions to standardize language across teams. Keep this cheat-sheet handy when building quotes or training new estimators.

Quick formulas (copy/paste into your calculator)

Setup fee = (setup hours * hourly rate) + tooling charge + estimated scrap value. Yield % = shipped lbs / input lbs. Unit cost = (material + processing + packaging + freight) / shipped qty. Use these to compute per-unit price and margin in your spreadsheet. For clarity, include a separate knife setup fee calculation cell and a field that captures yield loss and scrap percentage math so team members can audit numbers quickly.

Glossary of RFQ and processing terms

Definitions for CTL (cut-to-length), slit width, kerf, coil ID/OD, accessorials, FOB, and tolerance band ensure consistent communication between buyers and suppliers and help reduce misunderstandings that slow quotes.