price for profit
Keystone The first, and probably most, important concept with this spreadsheet is that hinges on the number in cell B7 . This is the Keystone Cell for the whole enchilada.
Let’s take a look at what this means.
For starters, remember when I asked about your average order size? This is the most common quantity for orders you process in your shop. For demonstration purposes we have this at 144. On the spreadsheet I’ve highlighted that row header in yellow. This is important, because what if your shop’s most common order size is 100? Then instead of the Keystone Cell being B7 , we would start one row up with B6 . The Price List Keystone starts with the most commonly ordered quantity. But for demonstration purposes we are going to use 144 as our starting point, and B7 as the Keystone Cell . Ya’ gotta start somewhere. This is the Keystone Cell because of the two components that feed into it. The first is our Cost per Impression figure that we worked so hard to calculate. That’s in cell B14 , and the name is highlighted in blue. The second is the Screens + Downtime figure that we built using the shop Labor Rate and efficiency numbers. That’s in cell B15 , right below and the name is highlighted in gold.
As you can see the example Cost per Impression figure of $0.51 is in cell B14 , and the Screen + Downtime figure of $0.21 is in cell B15 . Your numbers will be different. In fact, they could be much higher than these, so don’t feel like you are doing something wrong. Here’s the interesting thing. If you change either of these two factors, the entire Price List will recalculate automatically.
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