price for profit
In our example, we can see that the average Cost Per Impression for the year for each of our Cost Buckets :
Overhead .............. Consumables....... Labor..................... Energy...................
$0.04 $0.04 $0.38 $0.02 $0.48
Total..
This means that on average, this is what it costs us to complete that one production event for each of the four Cost Buckets we are measuring.. Totaling the Cost per Impression averages shows that for this example, it costs the shop $0.48 per impression on average to complete the work. The average for a two location job with a front and back would cost $0.96. Please note: your results will be different. This is an example only. Do not misunderstand that your costs should total to be $0.48. Your numbers are your numbers. This exercise is built so you can comprehend what your actual costs are to run your shop. The Fifth Bucket - Profit Often shops at the end of the year are dumbfounded when they have been working extremely hard, but don’t have a lot to show for their effort. The Fifth Bucket for the spreadsheet helps with adding a small chunk that can be allotted towards a goal with making more money.
Take a look at cell B31 by clicking on it. For the example, the shop set a goal of making $50,000. The “cost” of $0.05 was determined by using the total amount of impressions for the year from cell N14 , and then dividing that into $50,000. If you have B31 clicked you can see the formula up at the top of the worksheet in the formula area. =SUM(50,000/N14)
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