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Due diligenceExpert answer · 1 min read

How do I check a packaging distributor’s quoting for custom die-cut jobs?

Ask to see how a quote is built, then compare a sample of past quotes with the final invoices. You want to know whether tooling, setup, waste and freight are priced in, who approves the price, and how often a job turned out to cost more than quoted.

Ask the seller to walk you through one quote from start to finish. What goes in: the board, the die, setup time, scrap, printing and delivery? Is there a template, or is it done from memory by one person? If one person does it, that is a handover problem to plan for.

Then test the quotes against reality. Pick several finished jobs and compare the quote, the actual cost and the invoice. Look for jobs where the price was cut to win the work and whether that happened often. Ask how die costs are recovered: charged to the customer, folded into the price, or absorbed. Find out who owns the dies and where they are stored.

Finally, look at the follow-up. How many quotes turn into orders, and does anyone track why quotes are lost? A distributor that keeps this record understands its own pricing better. Your accountant can help you read job profitability, and a person who runs a similar operation can tell you if the method looks sensible. Ask to see a quote that was lost, not only the ones won.

Key takeaways

  • Walk through one quote and see what is priced in and what is left out.
  • Compare past quotes with actual cost and the final invoice.
  • Ask who owns the dies and how tooling costs are recovered.
  • Ask who owns each die and where it is stored, since tooling may sit with the customer or the supplier.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaGovernment
    How to conduct due diligence when buying a business
    bdc.ca·Checked Oct 21, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    What are the steps to buying a business?
    bdc.ca·Checked Oct 21, 2026

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