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How To Calculate Price For Your Custom Aluminum Profile?

219 Published by admin 12 12,2018

"Save cost in calculating the right way!"

 

Cost calculation is the basis for calculating the price of aluminum profiles, and it is the primary basis for the effective profit of orders. Costs include many aspects, but they are always inseparable. The first is raw material cost; second, processing and production costs, third, deep processing costs, and fourth, labor & transportation costs. All of these costs add up to the approximate price of the aluminum profile.

1. RAW MATERIAL COSTS

The price of aluminum rods is the primary condition for calculating the price of aluminum profiles. There are many types of aluminum rods, and they involve many issues, such as alloy type, alloy composition, aluminum rod size, aluminum rod quality, service requirements, and so on. This is an indeterminate number that gives an approximate reference price per day based on market volatility.

 aluminum CNC extrusion deep process profile

2. COST OF PRODUCTION

The production of aluminum profiles is a very complicated process involving many production departments, such as aluminum extrusion, aging treatment, aluminum profile anodizing, aluminum profile electrophoresis, aluminum profile surface coating, aluminum profile wood grain transfer and other surface treatments. Water and electricity are used in the production process. Workers' wages should be paid, and chemical reagents and other consumables should be purchased. The costs incurred in the production of these aluminum profiles are included in the production cost as the basis for calculating the price of aluminum profiles.

aluminum CNC extrusion deep process profile

3. PROCESSING COSTS

According to customer requirements, aluminum profiles can be cut into any part for easy transportation and use. If customers need other colors, such as yellow, gold or beige, they need additional plating, electrostatic powder coating or electrophoretic coating, and the surface treatment process is complicated. It takes a certain amount of time and labor costs, processing costs and transportation costs. The deep processing parts, such as cutting, drilling, slotting, die casting, CNC machining, etc., will also increase the corresponding deep processing costs according to different processes and difficulties.

aluminum CNC extrusion deep process profile

 

4. LABOR COSTS

Labor cost refers to the cost and expense of wages, living expenses, insurance premiums, communication fees and transportation costs when workers produce and assemble various aluminum profiles. In China, labor costs are a large cost minimum wage, set by local governments according to local living standards, plus different types of jobs, depending on the particularity of the job, providing different positions and wages. Labor shortage. Workers can only be retained if higher wages are offered. These costs are also calculated into the cost of the production phase.

aluminum CNC extrusion deep process profile

 

5. TRANSPORTATION COSTS

Semi-finished or finished products of aluminum profiles need to be transported to all parts of the country, even in different countries around the world, and the cheapest transportation method is the cheapest logistics. Domestic transportation by trucks and transportation by sea. The general length of industrial aluminum profiles is 6 meters. It can also be cut according to customer requirements and implement the most convenient transportation method. It is usually carried out by means of logistics, and it is more convenient to transport it by trucks of more than 6 meters. The calculation of logistics costs is based on the standards of the National Price Bureau. According to the distance and road conditions, the pricing standards of the local price bureaus are different according to the regional distance and weight.

delivery aluminum profile plant

 

6. OTHER COSTS

From production to finish, the aluminum profile involves the cost of the tax required for production. In China, the VAT rate for aluminum profiles is from 10% to 16%, depending on the type of product. If it is transported abroad, it will also involve local import tariffs, which are levied according to the import tax forms of different countries. Exports will also involve the cost of the production of export documents and customs declarations, which cannot be avoided.

aluminum CNC extrusion deep process profile

 

All of the above are all obvious explicit costs that can be easily learned during the production of aluminum profiles. However, there are other hidden costs that need to be considered. Cost management needs to be strengthened to control costs and maximize profits.

 

 

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