Determine material cost from average cost per letter
In this article, you will learn how to get your material cost when you receive an average cost per letter from your supplier.
- Make sure you have received your average cost per letter from your supplier
- Create a new pricing formula for your advanced model customiser.
In your new pricing formula enter the following values and ensure only one size range is added for this pricing formula.
- Save your new pricing formula.
- If you have already added a font to your customiser then use that one in this process otherwise add a new one.
- For your font, assign the pricing rule to the new pricing you have created e.g. "material cost test" and hit save at the bottom of the form.
- Go to the customer-facing version of your customiser on your stores and on the page where your customiser lives enter the following string of characters. If using the English alphabet with lowercase letters, abcdefghijklmnopqrstuvwxyz, if using another language enter in all the characters of your alphabet and make sure to count the number of characters you have entered.
Record the price displayed on your customiser and divide the price by 26 (the number of characters you have entered for the alphabet) which will give you your average cost - e.g. $646.51 / 26 = 24 = $24.84 - $24.84 is now your average cost for this font based on $1 per centimetre for the material cost.
- Change the material cost value for the price formula to then be as close as possible to the average cost per letter your supplier gave you from step 1.
- You now have an accurate material cost value you can use for your pricing formulas. You can go ahead and update your price formulas with the material cost value provided in step 8.