RFQs Crossing Your Desk: Accept or Pass? | Machine Shop Talk Ep. 89

You own a machining business that primarily deals in milled and turned parts. However, you keep getting RFQ’s crossing your desk for laser-cutting, welding, and forming - so what do you do?
You could mark them up, outsource them, pass them on to another shop, or outright pass completely - but what’s the best strategy?
In this episode of MACHINE SHOP TALK, Ian Sandusky from Lakewood Machine is back to cover this scenario that every shop will find themselves in sooner or later.
While there are many solutions to dealing with a predicament like this, there are some major pitfalls you need to avoid - and some strategies that can instead help develop your business into a manufacturing powerhouse!
How have YOU dealt with scenarios like this? Do you pass on RFQ’s outside of your manufacturing scope? Let us know in the comments below!
Do you want to take Practical Machinist for a tour around your shop? Drop a comment below or contact us via email at [e-mail], and we will arrange it! Stay tuned for more machining videos!
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[@tools6106]

What you are describing is business relationships and building trust. If your customer wants your eyes on the ball! Being honest with your customer.
I don’t have this equipment but my reputation can get this done and have my service back the product. Good customers will pay you for standing by your suppliers products. I spent 20+ years in printing we did outsourcing,,, a lot! Customers knew we did this but that was ok,,, we had the resources and took care of the “details”! One shop I worked in had a sign, we are the place with resources and we take care of the details, that IS our business!

[@richhuntsd12]

Hi Ian. Interesting topic. Just FYI. I have been self employed since 1982. So I am an old Guy. I have been in every scenario that You mentioned and more. My process is really simple for Me. I am a Machine shop 1st and foremost. So if the RFQ needs any machining on the parts then I am interested. If the RFQ is not something that I have the capabilities for I let My Customer know that and ask them if they want me to quote it anyway and do the QC work on the parts weather it is laser, waterjet etc. or I can refer them to my network shop that I use. That puts the ball back in the customers court. What many young people do not understand is what their customer actually wants. Some customers are only concerned with price, some customers want you to quarterback the job because they trust Your judgement because You have a reputation for quality.

[@Houcnc]

Nice 👍

[@ardesignsrc]

I have been on both sides of this. I have taken on work that I don't do in house. I have relationships with companies that offer services I don't. Also I do a lot of work for companies that don't offer the services I have. Both have worked out very well. It also helps if you have the knowledge to be able to offer this. My customers come to me for my knowledge and service.

[@dirtboy896]

I had this exact scenario happen to me 3 weeks ago. My normal machining customer needed a series of flat acrylic parts for their sales team to use as a mobile display case. I told the customer he would be better off having it laser cut and that I new a guy. I spent days going back and forth with email correspondence between the two parties for only a mark up that would have been $50. Was a complete nightmare. Never again.

[@kevind1865]

In my experience 99% of customers couldn't care less about who is doing the work as long as the parts show up to spec, on time, and for the price from the quote.
The customer is paying for your knowledge and relationships.
They don't have to deal with a vendor asking what cuts can be #2 or a good cut, and the vendor doesn't have to deal with a customer that might have texted you a picture of a picture saying "make this".
And you make money. Everyone wins.

[@jdaz5462]

Some customers (engineers) would like to have a single source for their prototype parts - or at least less suppliers to simplify things. If they want a shop tour, just say that you have defense contracts and you can't let strangers in :)

[@mesikamoto]

Just call your customer and say "we dont have these capabilities in house, do you want us to deal with vendors or I can refer you to someone who can make these parts." Its all about your relationship with the customer, there is no right or wrong.

[@kentl7228]

Be honest and say you can outwork part of your job that you cannot do. Offer that they have the option of taking their parts elsewhere for the parts they cannot do. If your option is cheaper than what they can get for themselves, they can come back to you
If you can't do any part of the job, send them to someone else in a kind and helpful manner.

[@jestonporter5049]

I like the "rising tides raises all ships" approach. It keeps everyone busy without you looking like a leech.

[@markhorner4982]

i didn't watch it all , but a few days ago my boss gave me a print to quote on, from another sub contract machine shop but a lot bigger than us, my boss words where why are they subbing out, i looked at the part only a 6 off , it was a titanium part, but had deep face grooves at 10mm O/D 25mm deep, told him nothing on the market standard to do them , he just said i will put it on the price, told him, nobody we use will want to make it, he put it out and had no quotes , had a part from the same company today to quote on , TITANIUM again , drawing stated rolled external thread, it had a through hole 230mm through and some wire cut feature, to me its another no quote, they are only quoting these parts out a the buyer missed the features that will cost money .

[@JoannaCollins-ml1rs]

In the 1980s I worked in a machine shop doing primarily mechanical power transmission equipment and work was hard to come by, short time working etc. We approached a few companies to see if they had any work we could quote for. One responded and sent drawings for us to quote: I am convinced they were so fed up with our sort of enquiry that they sent drawings of extremely complex parts that very few companies in the UK could have tackled. Think hardened and ground shafts, external and internal splines, many complex features. Needless to say we couldn't quote.