Cost Per Placement

How is cost per placement calculated?

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| How is cost per placement calculated? | Let me count the ways. Oh, this is not Jennifer to whom I'm talking. No matter, what's your environement? Is it prototype, high mix/low volume, low mix/high volume, etc.?

It could some down to simply calculating standard labor rates at 15 to 19%, material costs at whatever (20% range), and manufacturing overhead as about the same as the othe two. This all comes out of the business plan and which market segment and customer you choose to serve.

And on it goes - but placement costs can be calculated with the right equation.

Earl Moon

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| | How is cost per placement calculated? | | | Let me count the ways. Oh, this is not Jennifer to whom I'm talking. No matter, what's your environement? Is it prototype, high mix/low volume, low mix/high volume, etc.? | | It could some down to simply calculating standard labor rates at 15 to 19%, material costs at whatever (20% range), and manufacturing overhead as about the same as the othe two. This all comes out of the business plan and which market segment and customer you choose to serve. | | And on it goes - but placement costs can be calculated with the right equation. | | Earl Moon | I started to answer this question yesteday and had to stop for the reason Earl so elequently elaberated. There are sooooo many ways to calculate it. The first question is why do you want to know. Is it for equipment eval. or are you wanting to find out how much to charge a customer for your services. If you are trying to calculate how much to charge someone, don't base it on cost per placement. That is a totaly differnt equation. If you are doing equipment eval. cost per placement is in my opinion near the bottom of the list of priorities. Capabilities, service and reliability ,ease of use and does the equipment fit you needs are worth more than CPP. My 2 Centovos.

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