Pricing Structure Costs for Maquiladora Manufacturing Services

At Calibaja Manufacturing Services we believe that a business philosophy should be quantifiable. When we say that in order for us to succeed, our customers must succeed first; we mean it.

Our pricing structure directly reflects this philosophy in that growth of your company is encouraged via lower price incentives. As your operation grows in size, your cost per employee decreases. The graph below shows that with each additional employee added to the operation, the cost per employee (here shown as an index) will decrease. For example: say you had only one employee at a rate of $1 per hour, if you had 100 of the exact same employees, they would cost you only $.97 per hour. Although this may not seem like a lot of money at first glance, think about a 3% reduction in an annual labor bill of one million dollars; this 3% savings would represent a cost reduction of $30,000!

The pricing structure of CaliBaja manufacturing varies on the type of employee needed for the production. Some examples of going rates include (including Mexican Hourly Rates):

• $2.39/hr per operator
• $3.22/hr per quality inspector
• $4.20/hr per lead
• $5.77/hr per supervisor
• $10.87/hr per engineer

These prices are "fully burdened" prices which include all taxes and benefits required under Mexican labor law. These wages may seem quite low, however, it is important to note that the Mexican government offers the same protections and rights to its workers that workers in the United States enjoy.

In addition to the growth incentive provided by the reduction in labor costs associated with a greater number of employees, we have incorporated the same structure into our Small Business Fee. The Small Business Fee is a weekly fee that we charge in order to make it worthwhile for us to undertake manufacturing operations that require only a small number of employees. The Small Business Fee will exponentially decrease with each additional employee that is added to the operation. As you can easily see from the graph below, the Small Business Fee becomes negligible (less then 1.5% of the total operational cost with a normal ratio of direct to indirect employees) once you have a total of 15 employees or more. This system provides tangible encouragement of the growth of your business while simultaneously allowing us the ability to undertake small operations.

Regardless of which manufacturing solution you chose, you can save hundreds of thousands of dollars when you choose CaliBaja as your maquiladora. Every dollar you save on labor is another dollar in your pocket. Call us today for a customized plan that addresses each of your particular needs.