Step 1: the true cost of one unit
- Material: weight from the drawing or recipe × rate, plus the wastage you actually see on the floor
- Process: minutes on each machine × that machine’s hourly rate (power, labour, depreciation)
- Setup: the fixed time to start a job, spread over the quantity ordered
- Overheads and packing, as a fair share per unit
Step 2: three prices, not one
- Floor (minimum): cost plus the least margin you accept. An order below it should not be possible.
- Trade: the everyday rate for regular customers.
- Premium: small orders, urgent delivery, special grades.
Why a flat rate list loses money
A rate per m² or per piece hides the setup. On a large order the setup is spread thin and you are overpriced. On a small one it is spread thick and you are quietly selling at a loss. Price per unit falls as quantity grows - a real price has a curve, not a single number.
Questions people also ask
What is a floor price?
The lowest price at which an order still covers its full cost and minimum margin. Aakar One blocks an order below it.
How often should prices be updated?
Whenever a major material rate moves. If your costs come from the drawing or recipe, that is one rate change, not a new rate list.
Stop calculating this by hand
Aakar One does this arithmetic for every product and every size, then carries the result into the quote, the job card, stock and GST. Manufacturing ERP with CAD built in, made in India.