Production Cost of Aluminium Scofolds

What is your total cost for materials, labor, manufacturing (equipment + energy) and transportation per unit?

Once this is established, add your profit + overhead mark-up.

Being that shipping is a variable, average out the transportation cost by the number of units shipped per shipment or better yet, leave the shipping cost out of your selling price and add it after selling price per unit is established.

For discounts, decide how many points you want to shave from your profit and overhead mark-up.

Seems pretty simple unless I have missed something

Scofolds or scaffolds?

http://www.scaffoldmart.com/

Here are some US retail prices of scaffolding, with shipping costs.

The goal is to produce and ship the product for more money than it costs to produce. The larger this number is, the higher your profit margin will be.

I'm assuming you know how much it costs to produce the scaffolding. This would include all overhead, including labor, materials, electricity, etc. Start by adding 20% to that per unit number. If no one buys them, incrementally drop that number until they do. If they fly off the shelves, incrementally raise that number until a happy medium between production capability and demand is found.

Note: Most scaffolding is made with steel framework. Only the walk boards are made from aluminum. If you are creating the entire scaffold from aluminum, they will be very cost prohibitive, and you probably won't sell many.

Good luck!

IMHO, the root of your confusion is that you are mixing the various types of costs your company incurs. Production costs are different from selling costs, which are different from sales costs. Your production cost is how much you have to spend to fabricate your product, the scaffolds themselves. Your factory and inventory overhead should be folded into this calculation. Your selling cost will be the expense your company pays to advertise your product, the flat payment to your salesmen and in general any expense to promote you and your product over your competition. Your sales cost will be commission paid to your salesmen combined with the cost of getting your product into your customer's hands (shipping, tariffs).

"IMHO, the root of your confusion is that you are mixing the various types of costs your company incurs"

I think the root of his confusion is his lack of knowledge and understanding of his products, and his company.

I think he should go back and look at some historical data. maybe he can figure out a price per foot and disregard all those pesky details.

how much did it all cost?

How much did it cost to ship?

Add those two figures together plus 35% of that figure and thats your asking price for the lot

I suggest you sell every last piece as you have no idea of commercial enterprise.

Plus 35%. Only that much .. ! I used to mark-up 65% .. did fairly well too !