While die cutting is often thought of as the “lowest cost” manufacturing process, it may not always be the case.
If you are producing a relatively small volume of parts, sometimes it won’t be the most inexpensive option. In order to die cut parts, you first have to build the die (usually somewhere between $300-$700) and then pay for the production of parts. In prototype situations, where you need just a few parts, and the design itself may still change, this often isn’t worth it.
There are other factors, or creative ways in which your manufacturing partner can work with you, such that other manufacturing processes may result in lower costs, depending on your design.
All in all, no blanket rule says die cutting is cheaper than other manufacturing processes. It is all situational, and going through the DFM process will help raise options like this that you might not have considered.
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