Appropriately priced goods and services are an integral part
of a successful business. One of the
most popular products at CustomExcelSpreadsheets.com is a customized cost
calculator spreadsheet, and is the subject of this spotlight.
The Cost Calculator spreadsheet is customized to work for
the customer’s needs, with clearly marked places for the customer to input
pricing and bulk information for raw materials, other costs, and sell prices for goods and/or services. The spreadsheet uses this information, along
with any other factors important for the business, to automatically calculate
the costs per item and profit margins.
The spreadsheet also generates a report with a table and graph showing
the relative costs of materials used to create the product. The customer can then make adjustments to
bulk materials costs and/or sell prices and understand how the changes will affect
the bottom line.
As an example, imagine you own a pizza restaurant and need
to know what to charge for your pizzas. Put very simply, each
pizza is made up of dough, sauce, cheese, and toppings. Since these items are all purchased in bulk,
or perhaps even made from scratch, there will be formulas programmed into the
spreadsheet to determine costs of ingredients per pizza, including conversions from bulk
purchased quantities (say gallons or pounds) to the small measured quantities
(ounces or grams) that go into each sized pizza.
Costs and pricing will need to be calculated for each size
and type of pizza offered on the menu. Prices for
toppings can be generalized based on the most expensive or the average topping,
or however you choose. The cost of boxes
and plastic table top stands for take out or delivery should be factored in as
well.
This tool will help you understand the actual costs
associated with making pizzas. You can
then understand how an increase in the price of pepperoni might affect your
business, for example. You can also
understand what it really means to your bottom line if one of your employees
puts twice as much cheese on every pizza.
Prices for raw materials are constantly changing, so this
exercise should also be performed at regular intervals or whenever costs
change. A customized Cost Calculator spreadsheet
makes it easy to update changes and re-calculate pricing or costs with very
little effort.
If you need help
customizing a Microsoft Excel spreadsheet to meet your needs, please contact me
at julie@customexcelspreadsheets.com
or visit my website, www.customexcelspreadsheets.com.
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