Home / Costs & investments

Pricing & margin

Selling price with markup, break-even point and contribution margin, product mix at the bottleneck and service hourly rate.

Markup pricing New

Build the selling price of a manufactured product from direct cost, fixed expenses, taxes, commission, freight, bad debt and margin, with markup divisor and multiplier, minimum price, maximum discount and a comparison with the market price.

Markup, minimum price, discount

Break-even and product mix

Compute the break-even point of a product mix, contribution margin and profit, and find the most profitable mix when a bottleneck machine limits output.

CM, optimal mix, bottleneck

Product mix New

Enter products with price, variable cost and demand, and the time each takes on up to 3 resources, to get the most profitable production mix, the bottleneck resource, the value of 1 more hour at each resource and a comparison with the current mix.

Optimal mix, bottleneck, shadow price

Service labor rate New

Work out what to charge per hour for field service, repair, calibration, machining or installation work: loaded technician cost, tools, vehicle, overhead, billable utilization, sales tax, selling expenses and margin, with a mileage rate, minimum call-out and a sample quote.

Hourly, mileage, quote

Also useful

Waterfall chart New

A waterfall chart explains, in one picture, how a starting value becomes a final value step by step. Use it to show where a machine’s hours are lost, how price turns into profit or why this year’s result changed. Enter the starting value, the increases and decreases and, if you like, subtotals, and the page draws the waterfall with colors for increase, decrease and total, connectors between bars and the value and % on each one. Ready-made templates for OEE losses (from calendar time to productive time, with OEE at the end) and for selling price to profit.

OEE losses, price → profit

Machined part cost

Build the quote for a machined part: blank weight from shape and material, chip credit, operation list with cycle time, hour rate and setup spread over the batch, tooling, outside services, scrap, overhead and margin worked out on price.

stock, hours, setup, price

Precast concrete cost

Work out concrete cost per cubic yard from the mix and prices, the volume of typical pieces (pipe, panel, curb, pole), reinforcement, form cost spread over reuses, release agent, curing and labor; see cost and price per piece, per cubic yard and per ton, and form output.

mix, piece, $/yd³

Garment cost per piece

Add fabric, trims, sewing minutes at the cost per minute (or contractor price), cutting, finishing, packaging, losses and overhead to get garment cost, selling price from margin on sales, markup and a cost Pareto.

Cost per minute, markup