Production Cost

By | April 21, 2011

It's no secret that the buyer often has a choice what to give predpochtenie.Pervy manufacturer offers its products at amazingly low prices, the question immediately arises, and if everything is ok with this product? Another contrast, overstates the cost of production to the skies, citing the high quality of produced goods. But not always, the price is an indicator of quality, pricing depends on many factors, such as: overhead expenses, cost of raw materials, energy costs, workers' wages, etc. A huge role in the cost of providing what is capable of producing a single product or batch production, by comparison take the value car produced by hand or on the conveyor. Consider a concrete example on the basis of one of the entries produced by our company, namely the steel bends. When you order a small batch of the product selling price calculated by the formula: the cost of raw materials + shipping costs in its cost of energy delivery + + r / n + profit business, the sum was divided by the number of ordered products = cost of one-way. Now take a large order, which can be regarded as a series, the formula of pricing the same. But look, the magnitude of transportation costs of shipping one unit of raw material is reduced by increasing the volume at a constant value transportation. In turn, suppliers of raw materials reduces the cost of products, saving energy in the mass production of up to one third, in the end we get a cost reduction of 20-30%, which allows correspondingly reduce the cost of the finished product. The conclusion is clear, you want to get the goods at a lower price, buy in bulk. Most of the businesses of manufacturers willing to provide favorable terms to wholesale customers, and ignoring the few flexible pricing risk in a short time to decorate your name list of bankrupts.

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