Design Optimisation

Should-Cost Modeling
& Benchmarking

Bottom-up cost models that reveal what a part should cost — and the gap to what you actually pay.

Without a should-cost view, you negotiate and design in the dark. We build bottom-up cost models — material, process, labour, overhead and margin — that show what each part should cost, so you can benchmark suppliers and target the gap.

The problem

When you don’t know the real cost

Paying quoted prices without a should-cost baseline leaves money on the table.

01

Price-taker position

Without a cost model, you accept quotes you can’t challenge.

02

No benchmark

No way to tell a fair price from an inflated one.

03

Opaque cost build-up

Material, process and margin are bundled and invisible.

What we do

Cost, from the bottom up

What it really should cost.

Should-Cost Models

Should-Cost Models

Bottom-up models covering material, process, labour and overhead.

Benchmarking

Benchmarking

Quoted prices compared to should-cost and to market.

Gap & Target Setting

Gap & Target Setting

The cost gap quantified into negotiation and design targets.

What you get

What you receive

A defensible cost baseline.

Should-cost models

Bottom-up cost for each target part.

Benchmark report

Quoted vs should-cost vs market.

Negotiation targets

The quantified gap to pursue.

Book a 60-minute working session

Bring a real decision or dataset — we’ll show you how KEPLER would approach it, with no obligation.

Book a 60-minute session
Where we start

A focused, low-risk first step

We start with a short diagnostic — the decision to improve, the data behind it, and a first slice that proves value fast. See how we engage →

Sample outputs

Typical cost & VAVE artifacts you’ll receive

BOM cost modelShould-cost workbookSupplier cost benchmarkTeardown cost bridgeMaterial substitution shortlistVAVE opportunity tracker
Engagement model

Engage at the level that fits

From a quick diagnostic to a fully managed service — start small and scale as value is proven. How we engage →

How we work

How should-cost is built

From part to a defensible target.

Decompose

The part is broken into cost elements.

Model

Each element is costed bottom-up.

Benchmark

Should-cost is compared to quotes and market.

Target

The gap becomes a clear target.

Apply

Targets feed negotiation and design.

Outcome

Never negotiate blind again

Every part has a defensible should-cost and a target gap.

  • Bottom-up should-cost per part
  • Quoted vs should-cost gap
  • Market benchmarks
  • Targets for sourcing and design
CostBottom-up
BenchmarkMarket
GapQuantified
TargetsClear
FAQ

Common questions

How accurate are the models?
They’re built from real process, material and labour data, and validated against known costs — accurate enough to set hard targets.
Do you cover our commodities?
We build models across the categories that matter to you, starting with the highest-spend, highest-gap parts.
Use cases

Representative use cases

Common problems in this area, how KEPLER solves them, and the likely outcome.

Negotiating thousands of parts with no independent cost view
Heavy automotive · Sourcing

Negotiating thousands of parts with no independent cost view

5–7% cost typically addressable

View details →
Quotes are slow and two estimators price the same board differently
Electronics / EMS · Cost estimation

Quotes are slow and two estimators price the same board differently

~50% faster quote turnaround

View details →
Annual price increases on single-source parts get paid unchallenged
Industrial components · Procurement

Annual price increases on single-source parts get paid unchallenged

2–4% avoidable price increase

View details →

Know what it should cost

Pick a high-spend part and we’ll build its should-cost.

Talk to our VAVE team