24 lines
1.3 KiB
Plaintext
24 lines
1.3 KiB
Plaintext
Batch Pricing Formula
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Price = (Material + Labor + Overhead + Additional) × (1 + Reject%) ÷ (1 − Margin%) × Complexity Factor
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Walk In Parts or one off
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=========================
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The formula behind the Quick Quote sheet works like this:
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Price = MAX( (Cost per Piece ÷ (1 − Margin%)) × Quantity, Minimum Job Charge )
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Where Cost per Piece breaks down into three components:
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Cost per Piece = Labor + Overhead + Material
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Labor = (Total Minutes per Piece ÷ 60) × Labor Rate ($/hr)
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Overhead = (Total Minutes per Piece ÷ 60) × Shop Hourly Operating Cost ($/hr)
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Material = Powder per Piece (lbs) × Powder Cost per Pound × Number of Coats
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And Total Minutes per Piece is simply:
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Prep Time = Stripping + Blasting/Cleaning + Masking + Outgas Bake
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Application Time = (Spray + Cure + Inspect) × Number of Coats
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Total Minutes = Prep Time + Application Time
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So the margin is applied as a markup on your true cost (a 35% margin means your cost is 65% of the selling price), and the MAX function ensures you never quote below your shop minimum no matter how small the job is.
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The sheet also calculates your Effective Hourly Rate Earned = Quoted Price ÷ (Total Minutes × Pieces ÷ 60), which is really useful for gut-checking whether a job is worth your time compared to other work you could be doing. |