It used to drive me loopy making an attempt to determine how to calculate costs per thousand after which convert it into per piece. It was so tedious and after awhile, simply plain irritating. So I designed a fast little spreadsheet on Excel that may calculate the reply for me and I have to use it no less than a dozen occasions per day, if no more.
Now that I’ve acquired a pleasant clientele, they’re all the time asking me to convert pricing for them so I made a decision to do two issues. Put up an interactive calculator on our web site in order that they’ll do it themselves AND write an article serving to others that discover themselves in the identical boat.
So let’s give an instance after which how to convert it.
You want a truckload of 2x4x8′. You telephone round and get quotes on the fabric. The greatest quote is $250/M for 20 packages (294 items per bundle). What is that per piece? So how a lot is it for the entire load EXACTLY?!?
Here’s the formulation on the way you calculate per piece.
Step 1 – Get the board toes per piece. (See my different article – “Board Feet? How to Calculate”)
Thickness X Width X Length / 144 (Make positive to change the eight foot to 96 inches (8×12))
2 X four X 96 / 144 = 5.33333
Step 2 – Take the worth per thousand (or Per M) and divide by 1000.
250 / 1000 = 0.25
Step 3 – Multiply the board toes in step 1 by the reply in step 2.
5.33333 X 0.25 = 1.33333
Your reply is $1.33 per piece (Rounded down after all).
Okay, are you continue to with me? Good! Now how a lot is the full truckload? Well, there are two methods to go about this. You can both take the lengthy street or the quick minimize (which is extra correct). I’ll clarify each.
Long Road – This is now taking 20 packages and multiplying by 294 items which provides you with 5880 items. Now take $1.33 and multiply 5880 and you’ve got your reply of $7820.40
Short Cut – In the 1st step merely embrace the quantity of packages and items in your calculation.
2 x four x 96 x20 x294 / 144 = 31,360 and multiply it by step 2 (0.25). You have your reply of $7840.00
NOW, you’ll discover that there’s nearly a $20 distinction? That’s as a result of within the first calculation we rounded down all these decimals to simply two. That provides up over 5880 boards (by $19.60 to be actual!) So you positively need to use the shortcut now that you understand how.
So one final query. Why do lumber firms quote per thousand? Simply due to quantity AND a number of sizes. It’s a lot simpler to give one quote on 2x4x8, 2x4x10, 2x4x12, 2x4x16 at $250/M then having to calculate all of the totally different sizes and them advert them collectively or quote every measurement individually (there could also be ten totally different sizes on the truck!). Also, if the truck is heavy and a bundle has to come off, the lumber firm would have to re-quote once more when it was already painful to do it simply the primary time!
There you have got it. Hopefully this now provides you a transparent understanding of how to calculate and convert per thousand to per piece. Oh, one very last thing, should you’re actually caught and nonetheless cannot get the calculations, merely go to our web site and a free calculator program could be discovered there!