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Calculating Cubic Foot and Capacity. Affect on Pricing?

I calculate my pricing based on the cube values but sometimes I see that Crate Pro's pricing is very different than what I come up with? Why is that?


Best Answer

Crate Pro was designed to give you very accurate pricing based on your settings. Crate Pro takes into account the actual material used, plus waste factors you've indicated for the materials used. So changes in the dimensions of the design are accounted for. When pricing based on Cubic Foot or Meter the dimension of the crate can have you a much lower price for the crate or much higher even when using the same amount of materials.

Crate Pro provides this information for determining shipping costs. Inside dims, outside dims, Cube and Capacity can be found in Wts & Dims tab of design.


Cubic feet is measured by multiplying the height X width X depth of the outside dimensions of the box, and dividing that total by the number of cubic inches in a cubic foot (a cubic foot is 12 X 12 X 12= 1728).


Example Cubic Foot:

Crate inside dims are 40 x30 x 20  ( example using 1/2 ply and 2x4 outside cleats plus a 4x4 skid )

Crate ouside dims are 44 x 34 x 27.75 = 41,514' 

41,514 divided by 1728 = 24.0243' (which will be rounded in Crate Pro)

 

$ Per Cubic Foot: Located in the design on the Prices tab. The  $ Per Cubic foot is calculated using your pricing.

Based on my pricing settings my crate is $125 each

$125 divided by 24 = $5.21 per cubic foot

 You're able to verify this using the same formula for any crate you build.

While some companies do quote by cubic foot, you need to be careful. The more out of cube a crate is, the more you could be under charging for your crate. Quoting by cubic foot has become less and less common in the industry for custom crating companies.

Example Of when pricing by Cube will under quote your crate: 

Crate 1 OD is 40x40x40 which is 37 Cubic Ft

Crate 2 OD is 100x20x20 which is 23 Cubic Feet. 

Using the formula to calculate Cube, in this example you will charge much more for the smaller and probably easier to build since its dimensions will be repeated on all sides. The larger crate with more cuts, splices and labor time will be quoted at a much lower cost if pricing by Cube. 

If you quote your crates by cubic foot keep in mind the disadvantages of doing so. Crate Pro costs and quote prices are based on the actual calculated selling price as determined by your settings. Getting correct costs and preferences in Crate Pro is important to get the most out of your Crate Pro purchase.

>>>>>>

Calculating Capacity: The same formula above is used except you use the Inside Dimensions of the crate instead of Outside dimensions.

It should be kept in mind that this is the inside capacity calculation of the crate rather than the actual crate volume. depending on the content dimension you may need a higher capacity crate for your customers content.

Some companies may chose to charge by Cube or Capacity. Remember that Crate Pro uses a much more accurate algorythm to determine your actual costs and calculated selling price. (Actual material usage + waste * markup) + (calculated labor time * markup) + additional preferences you may have entered for your company such as Administration time, addition of ISPM stamping and many more options.

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Answer

Crate Pro was designed to give you very accurate pricing based on your settings. Crate Pro takes into account the actual material used, plus waste factors you've indicated for the materials used. So changes in the dimensions of the design are accounted for. When pricing based on Cubic Foot or Meter the dimension of the crate can have you a much lower price for the crate or much higher even when using the same amount of materials.

Crate Pro provides this information for determining shipping costs. Inside dims, outside dims, Cube and Capacity can be found in Wts & Dims tab of design.


Cubic feet is measured by multiplying the height X width X depth of the outside dimensions of the box, and dividing that total by the number of cubic inches in a cubic foot (a cubic foot is 12 X 12 X 12= 1728).


Example Cubic Foot:

Crate inside dims are 40 x30 x 20  ( example using 1/2 ply and 2x4 outside cleats plus a 4x4 skid )

Crate ouside dims are 44 x 34 x 27.75 = 41,514' 

41,514 divided by 1728 = 24.0243' (which will be rounded in Crate Pro)

 

$ Per Cubic Foot: Located in the design on the Prices tab. The  $ Per Cubic foot is calculated using your pricing.

Based on my pricing settings my crate is $125 each

$125 divided by 24 = $5.21 per cubic foot

 You're able to verify this using the same formula for any crate you build.

While some companies do quote by cubic foot, you need to be careful. The more out of cube a crate is, the more you could be under charging for your crate. Quoting by cubic foot has become less and less common in the industry for custom crating companies.

Example Of when pricing by Cube will under quote your crate: 

Crate 1 OD is 40x40x40 which is 37 Cubic Ft

Crate 2 OD is 100x20x20 which is 23 Cubic Feet. 

Using the formula to calculate Cube, in this example you will charge much more for the smaller and probably easier to build since its dimensions will be repeated on all sides. The larger crate with more cuts, splices and labor time will be quoted at a much lower cost if pricing by Cube. 

If you quote your crates by cubic foot keep in mind the disadvantages of doing so. Crate Pro costs and quote prices are based on the actual calculated selling price as determined by your settings. Getting correct costs and preferences in Crate Pro is important to get the most out of your Crate Pro purchase.

>>>>>>

Calculating Capacity: The same formula above is used except you use the Inside Dimensions of the crate instead of Outside dimensions.

It should be kept in mind that this is the inside capacity calculation of the crate rather than the actual crate volume. depending on the content dimension you may need a higher capacity crate for your customers content.

Some companies may chose to charge by Cube or Capacity. Remember that Crate Pro uses a much more accurate algorythm to determine your actual costs and calculated selling price. (Actual material usage + waste * markup) + (calculated labor time * markup) + additional preferences you may have entered for your company such as Administration time, addition of ISPM stamping and many more options.

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