This may get a bit obtuse, or at least arcane, so bear with me, and if
this is just whacked out, let me know.
You are purchasing Matboard and Glass based by the square foot or square
inch.
Let's just look at mats. And let's use sq in so we have less rounding.
A 32 x 40 mat is 1280sq in. (or 8.8888888888888888888888sq ft)
A 40 x 60 mat is 2400sq in. (or 16.666666666666666666666sq ft)
So a 40 x 60 is only less than double the square footage. I think it is
shy by 3.3333333333333333333333333333%, or .03333333333333333333.
Now for a look at prices.
IF I pay 2.84 for a sheet of 3297 and I am paying 6.30 for a sheet of
83297:
And IF I am paying 3.68 for a sheet of 63297 and 7.58 for a sheet of
863297:
And IF I am paying 6.09 for 1610 and 12.49 for a sheet of 81610:
THEN I am paying paying sqi:
3297 .0022centssqin or .3195 sqft
83297 .0026centssqin or .3780 sqft
63297 .0029centssqin or .4140 sqft
863297 .0032centssqin or .4548 sqft
1610 .0048centssqin or .6851 sqft
81610 .0052centssqin or .7494 sqft
SO, for 3297 I pay about 15% more for O/S
and for 63297 I pay about 9% more for O/S
and for 1610 I pay about 9% more for O/S
OK that's fine. We knew that it was more expensive for OS, but I wanted
to show how much you may be paying for the item in it's unit form.
There are several things you can do.
Base you Lifesaver, or any POS software you have off the OS prices, and
then on any regualr order your are making that 9% to 15% EXTRA. (MORE
MOOLAH). This way you make the regular markup when you sell O/S, and
not loose the 9% to 15%. And make out just fine.
So let's say this sounds greedy to you.
The other is to look at your percents of O/S orders for frames, or O/S
purchases you make. Let's say it is 30% of the time (if is more likely
15%). Make your regular Lifesaver base say 3% more instead of the 9%,
and in the end the 3% extra on 60% of your orders will will make up for
the 9% loss on 30% of your orders. (these percents are examples, or
suppositions).
The other is to go back to the base sqin numbers and do the rounding for
the ground up, and then base the pricing numbers of the rounded
streamlined numbers.
For instace
3297 .0022centssqin or .3195 sqft
83297 .0026centssqin or .3780 sqft
63297 .0029centssqin or .4140 sqft
863297 .0032centssqin or .4548 sqft
1610 .0048centssqin or .6851 sqft
81610 .0052centssqin or .7494 sqft
is
3297 .003centssqin or .32 sqft
83297 .003centssqin or .38 sqft
63297 .004centssqin or .42 sqft
863297 .004centssqin or .46 sqft
1610 .005centssqin or .69 sqft
81610 .005centssqin or .75 sqft
And hence:
3297 .003centssqin or .38 sqft
83297 .003centssqin or .38 sqft
63297 .004centssqin or .46 sqft
863297 .004centssqin or .46 sqft
1610 .005centssqin or .75 sqft
81610 .005centssqin or .75 sqft
and then
3297: 1200sqin x .003 is 3.60 a sheet
83297: 2400sqin x .003 is 7.20 a sheet
63297: 1200sqin x .004 is 4.80 a sheet
863297: 2400sqin x .004 is 9.60 a sheet
1610: 1200sqin x .005 is 6.00 a sheet
81610: 2400sqin x .005 is 12.00 a sheet
and now compare this to actual:
3297 2.84
83297 6.30
63297 3.68
863297 7.58
1610 6.09
81610 12.49
I would make more on some, and less or even lose on others.
So lets do a little more rounding, and make:
3297: 1200sqin x .003 is 3.60 a sheet
83297: 2400sqin x .003 is 7.20 a sheet
63297: 1200sqin x .0045 is 5.40 a sheet
863297: 2400sqin x .0045 is 10.80 a sheet
1610: 1200sqin x .006 is 7.20 a sheet
81610: 2400sqin x .006 is 14.40 a sheet
in my baseline retail pricing scedule.
This makes for some nice things:
It covers the nasty 3.3%smaller but 10 to 15% more by the sheet problem.
It makes that 20 x 40 mat cost the same price as a 19 x 41 to the
customer(They really like that!).
Now my price jumps from material are nice basic to mu customer. Rag is
double regular. Regualr is half the price of Rag. BlackCore is 50% more
than regular and 50% less than Rag.
Now lets say BainBridge is more than Crescent.
Do the same matrix, but do the math off of your BB Alpha, B/C and paper
prices. Make BB Alpha and Crescent Rag the same to retail price (why
penalize your customer for liking one purple over an another?). This
means you make more selling a Crescent over BB. This means you make more
selling 32 x 40 over 40 x 40.
Yes, that is correct.
But who said you ar not allowed to make money. Who said you can't make
pricing painless for your consumer?
Dig into your computer or call Lifesaver. You may find mats are
actually calcualted from Sq in. and not UI.
Who said UI actually works for everything. Glass is computed by most
software by Sq in too.
Make your prices what you want them to be, not what a vendor tell you they need to be. Charge what the item is worth, not the least amount you can get.
Did any of this help, or even make sense?
