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Xometry Prices

Miller846

Aluminum
Joined
Oct 23, 2022
Good Evening, I am curious what your thoughts are about current Xometry pieces being offered for their jobs. We did quite a bit of Xometry work last year but for the past 6 months have been doing work from other customers. I started checking Xometry again recently to see what’s being offered and it seems like they aren’t paying anything at all anymore. They always have been on the low paying side but we did make quite a decent profit off them last year. The prices being listed now won’t even cover material costs let alone plating and labor….did they recently acquire a bunch of international shops to do their work or what am I missing? Curious what you guys say, thanks!
 
I went through the onboarding process a couple years ago and got approved, but didn’t take any work until late last year. Have only taken jobs that I’ve had material for, don’t need any certs or outside process and require only simple “standard inspection” to minimize my time.

All of them have been profitable and have made at least my shop rate on them, which is higher than average.

Most of the jobs on the Job Board are not worth taking, however there are some great ones depending on your shop.

Prices have been getting worse it seems though. Even being a “Premium Supplier” with 100% On-Time Delivery and 100% Quality, checking the Job Board multiple times a day, I haven’t taken anything in about a month.

Uploading Job Board part files to their own quoting system you can easily see how much lower they’re paying suppliers, often times lower than what material or outside process minimums are.
 
If you need Xometry to find work, you're probably in the wrong business.

Contract machining and metalworking has always been a "face-to-face" business, where suppliers go to the customers, meeting and selling them at their facility.

Work is also had by word-of-mouth, and who-you-know in your region.

Most machine shops are built on repeat customers, so the job of selling occurs mostly early on...
 
Holy shit! I got quoted in that article!
might want to frame that and put it up on the wall....can point to it years down the road when they are no longer around. unfortunately as the article points out the competition for online platforms is accelerating and here to stay they will just come and go with other platforms filling the gaps
 
might want to frame that and put it up on the wall....can point to it years down the road when they are no longer around. unfortunately as the article points out the competition for online platforms is accelerating and here to stay they will just come and go with other platforms filling the gaps
I am skeptical of Xometry’s business model too, but bear in mind that the article citing Garwood has an incentive to pee on Xometry because they’ve shorted the stock.
 
Is Xometry worth it as a tool to make contacts if you are specialized and doing work most shops won't touch? (Use them as much as they are using you.)
But this "Test Piece" I keep hearing about is just simple machining, not "Specialized" by any means.
 
Is Xometry worth it as a tool to make contacts if you are specialized and doing work most shops won't touch? (Use them as much as they are using you.)
As someone who sometimes plays in the region between "technically possible" and "commercially feasible" I can for sure say that when I'm looking for the handful of companies in the world that might be able to do something, a over-advertised middleman with an automatic quoting engine, mystery suppliers and standard +-.005 tolerances is where I would start my search...
 
Is Xometry worth it as a tool to make contacts if you are specialized and doing work most shops won't touch? (Use them as much as they are using you.)
Seeing as they had called me and I had already answered, I tried throwing them parts at the tighter end of tool and die, in my case things that really need to be diamond turned. The rep no-quoted on the phone after a description of tolerances.
 
If you need Xometry to find work, you're probably in the wrong business.

Contract machining and metalworking has always been a "face-to-face" business, where suppliers go to the customers, meeting and selling them at their facility.

Work is also had by word-of-mouth, and who-you-know in your region.

Most machine shops are built on repeat customers, so the job of selling occurs mostly early on...
I think the whole "face-to-face" thing is becoming a thing of the past.

I have a few local customers, they have never been to my facility and we have never met, I have been to their facility, only to deliver parts but have never walked further than 10 feet in the door to drop a box on the shelf. I could sit across from a purchaser, engineer at a table and never know it.
might want to frame that and put it up on the wall....can point to it years down the road when they are no longer around. unfortunately as the article points out the competition for online platforms is accelerating and here to stay they will just come and go with other platforms filling the gaps
Competition is going to grow in this online platform, Xometry is far from the first to do what they are doing, there have been sourcing companies around for decades sourcing parts to machine shop, Xometry just scaled it nation wide with an online platform for ease of access.

I know of a few large medical and aerospace companies that solely use sourcing companies for ALL their work, YOU can not be a direct vendor for them. I know an engineer for a well known medical device company, they dropped all their machine shop vendors years ago and now use one sourcing company, and it isn't one of these online companies popping up.

It seems as if times are changing and a lot of customers don't necessarily care what machine shop is doing their work as long as they meet quality specs, lead time, etc. and having access to 1000's of machine shops across the country instantly is beneficial to a lot of these customers, they can get parts faster in some cases, unfortunately cheaper, if you have higher overhead and need to quote a higher hourly rate than the shop you are quoting against, that is on you and your business. That does not make it a race to the bottom.

Our industry has always been a race to the bottom. My direct customers don't even ask me to quote lead times anymore, RFQ's come in with requested due dates, what does the competition at that point come down to? Price, whoever has the best price and can hit the requested due dates. You can argue quality is a factor, but I'd hope any customer that has shops quoting their work are having shops they know can do quality work and if not that shop is no longer a vendor.
 
I think the whole "face-to-face" thing is becoming a thing of the past.

I have a few local customers, they have never been to my facility and we have never met, I have been to their facility, only to deliver parts but have never walked further than 10 feet in the door to drop a box on the shelf. I could sit across from a purchaser, engineer at a table and never know it.

I get what you're saying...as I'm an introverted engineer who has never actually enjoyed the selling side of running a business.
And I get the internet has enabled more business to occur without face-to-face meeting(s).

However...

Companies are still employing armies of salesman, whose primary job is to visit customers and potential customers and attempt to get their business.

Sure, some companies may try to scale-down or even eliminate face-to-face selling, but when they see their market share start to drop off they would know why.

Face-to-face selling takes advantage of a basic human instinct of liking to personally interact with our fellow man.

Buyers are influenced by human interaction without even knowing it. (Just like we can be with marketing/advertising...)
 








 
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