Price for Profit Test

price for profit

Downtime $ Cost This calculates out the estimated average daily cost of Downtime in your shop. We aren’t using it in the pricing calculations. But since we can show this, you now can make a note of it. Keep this figure in your head so when you are on the production floor and your machines are not running for one reason or another, you’ll know what it is costing you. Just don’t let the steam escape from your ears like a cartoon character. Average Print Run This is the basic average quantity of shirts ordered. On our example, we are using 144. The math works better if you are determining this actual number based on the orders your shop runs. Enter that number here in cell B15 . Average Set Up Time Min. This is the average number of minutes it takes your production crews to set up a job per screen. For example, if a three color job takes 20 minutes to register, the time per screen would be 6.66 minutes. Again, the math works better if you are using accurate averages for how your shop runs. Using the previously mentioned Production Log can help you track this time. Set Up Cost Per Screen This is a calculation using the previously determined cost for Downtime in cell B10 multiplied by the Average Set Up Time Min number in cell B16 . Yes, this number may look large. Remember, this is based on the opportunity cost you are losing per hour when you are not printing shirts.

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