Costing & Quotation

💰 The "Boss's Calculator": Rack Plating Cost Model

Basis: 1 Standard Cage Rack ($300 \times 900$ mm).

Capacity: 600 Zipper Pulls per Rack.

Surface Area: Approx. 50 dm² per rack (Estimate based on 600 small pulls).

Part 1: The "Base Cost" (Direct Material)

This is the cost incurred for EVERY product, regardless of the final color. It includes Pre-treatment, Copper, and Nickel.

A. Metal Consumption (The Heavy Cost)

Note: In rack plating, we apply an "Over-plating Factor" of 1.3 (30%) because edges get thicker plating than centers.

1. Copper Layer (20 microns):

   • Math: 50 dm² $\times$ 20µm $\times$ 8.9 (density) $\times$ 1.3 (Factor) = 0.116 kg Copper.

   • Cost ($10/kg): $1.16 per Rack.

2. Nickel Layer (10 microns):

   • Math: 50 dm² $\times$ 10µm $\times$ 8.9 (density) $\times$ 1.3 (Factor) = 0.058 kg Nickel.

   • Cost ($22/kg): $1.28 per Rack.

B. Chemical Consumption (Drag-out & Additives)

• Pre-treatment: Degreasing, Activation salts. ~ $0.30 / Rack.

• [QLQ Product] Additives: Brighteners (Acid Cu, Ni), Softeners, Levelers.

  • Estimate: Typically 30% of the metal cost in high-spec plating.

  • Cost: ~ $0.75 / Rack.

🛑 Base Material Cost Per Rack:

$1.16 (Cu) + $1.28 (Ni) + $0.30 (Pre) + $0.75 (Additives) = $3.49 / Rack

Part 2: The "Color Finish" Cost (Variable)

Add this to the Base Cost depending on what the customer wants.

Note: "Lacquer" includes the lacquer chemical + oven energy.

Part 3: Operational Overhead (The "Factory Run" Cost)

Based on 84 Racks/Day (50,000 pcs).

1. Labor (The biggest factor in Rack Plating):

   • Staff: 12 people (Racking is slow!).

   • Daily Wage Bill (Est): $400.

   • Cost per Rack: $400 ÷ 84 = $4.76.

2. Electricity (Power):

   • Rectifiers (5000A total), Chillers, Heating, Ovens.

   • Daily Bill (Est): $200.

   • Cost per Rack: $200 ÷ 84 = $2.38.

3. Water & Waste Treatment:

   • Chemicals for water treatment.

   • Cost per Rack: $0.80.

4. Jigs/Racks Depreciation:

   • Repairing/Replacing coating on racks.

   • Cost per Rack: $0.20.

🏭 Total Overhead Per Rack:

$4.76 + $2.38 + $0.80 + $0.20 = $8.14 / Rack

Part 4: Total Cost & Quotation Calculator (Excel Logic)

Here is the formula to determine the Minimum Sales Price (Break-even).

Formula:

Total Cost = (Base Material) + (Color Cost) + (Overhead)

Example 1: Imitation Gold Zipper Pull

1. Base Material: $3.49

2. Color (Imitation Gold): $0.50

3. Overhead: $8.14

4. TOTAL Manufacturing Cost: $12.13 per Rack

5. Cost Per Piece: $12.13 ÷ 600 pcs = $0.0202 (2.02 Cents)

Example 2: Gunmetal (Black) Zipper Pull

1. Base Material: $3.49

2. Color (Gunmetal): $0.80

3. Overhead: $8.14

4. TOTAL Manufacturing Cost: $12.43 per Rack

5. Cost Per Piece: $12.43 ÷ 600 pcs = $0.0207 (2.07 Cents)

Part 5: The "Boss's Quotation Strategy"

How to Quote to the Customer (Profit Margin Model):

You cannot quote the manufacturing cost. You must add:

1. Rejection Buffer (5%): Covers re-work and scrap.

2. Admin/Sales/Rent (10%): General expenses.

3. Profit Margin (30-50%): For high-quality rack plating.

The "Quick Quote" Formula:

Final Quotation Guide (Per Piece):

🌟 Why use the [QLQ System] for Costing?

To the Boss:

You might see [QLQ] Brighteners costing 10% more than generic brands. But look at the math:

• Chemicals are only ~7% of your total rack cost ($0.75 vs $12.00).

• Labor & Overhead is 67% ($8.14).

The Logic:

If generic chemicals cause 5% Rejection Rate:

• You lose labor ($8.14) + Metal ($2.44) on those racks.

• You have to Strip and Re-plate (Doubling the labor cost).

If [QLQ Products] reduce rejection to 1%:

• You save huge amounts on Labor and Capacity.

• Conclusion: High-quality additives lower your Total Unit Cost.