This article provides a simplified method for calculating the prices of injection-molded products, making it convenient for quick estimations.
- Material Cost: (Net Weight of the Part + Runner Weight) / 99% / 98% * Unit Price of Black ABS
[99% accounts for the material’s heating decomposition, i.e., material loss; 98% represents the qualification rate or yield rate. If challenging to determine, a lower percentage can be used.]
- Labor Cost: Basic Salary * (1+X) * Number of Employees Assigned to the Product / 22 Days / Single Shift Production Output
[Note: Basic salary depends on your factory’s wage system; X refers to the proportion of monthly staff subsidies and bonuses; Number of employees assigned to the product includes all personnel involved from raw material to shipment and can be a decimal. Remember, 22 days are the legally mandated working days; if your factory operates for 30 days, the extra 8 days should be paid as overtime and should not be included in calculations.]
- Equipment Depreciation: Equipment can be depreciated according to accounting years, typically around 8 years. Equipment depreciation refers to the depreciation of equipment used to produce the product.
Monthly Depreciation Cost / 30 Days / Single Shift Production Output / Daily Shifts / Equipment Utilization Rate
[The equipment utilization rate depends on your factory’s actual situation. If the equipment operates 24 hours a day, the cost will be relatively low; otherwise, if the utilization rate is low, the depreciation cost will be higher. Injection molding machines usually require maintenance and mold changeover time. Do not overestimate this cost, or it may lead to losses.]
- Building Depreciation: Building depreciation refers to the cost of the place and space involved in producing the product.
Monthly Depreciation Cost / 30 Days / Single Shift Production Output / Daily Shifts
[Depreciation cost should be calculated for 30 days.]
- Energy Costs: Water, electricity, gas (compressed air, high-pressure nitrogen), etc., based on actual consumption.
For example, electricity cost = 24-hour power consumption * electricity unit price / Single shift production output / Daily shifts. Other energy costs can be calculated similarly.
- Miscellaneous Expenses: This includes items like personal protective equipment for employees and low-value auxiliary supplies used for packaging the product.
These can be calculated as follows: Single shift usage quantity * unit price / Single shift production output or Total usage quantity * unit price / Total product quantity.
- Mold Cost Amortization: Typically calculated based on the mold’s design life, for example, if it is 200,000 cycles, then the mold amortization cost = mold cost * (1+X) / 200,000. Here, X represents the mold maintenance cost.
Main Processing Costs: Electricity Cost + Water Cost + Equipment Depreciation + Building Depreciation + Direct Labor Wages + Maintenance Costs + Other Auxiliary Costs
Additional Processing Costs: Transportation + Packaging + Sales Expenses + Profit + Taxes
Total Product Value – Material Cost – Labor Costs – Electricity Costs – Losses, etc. = Net Profit