Understanding Package Pricing

Package pricing is designed for bulk materials—items you buy in packages or containers but use in smaller quantities. MakeFlow automatically calculates the cost per unit so you can accurately track material costs.

The Problem Package Pricing Solves

Common Scenario

You buy glaze in 500ml bottles for €15 each. But you only use 150ml per bowl.

Without package pricing, you’d need to:

1. Calculate: €15 ÷ 500ml = €0.03/ml
2. Enter €0.03 as cost per unit
3. Recalculate every time the price changes

With package pricing, MakeFlow does this automatically.

How It Works

Package Pricing Setup

When adding a material:

1. Set Pricing Type to “Package”
2. Enter Package Quantity: How much comes in one package
3. Enter Package Unit: The unit of measurement
4. Enter Cost Per Package: What you pay for one package

Example:

• Material: Clear Glaze
• Pricing Type: Package
• Package Quantity: 500
• Package Unit: ml
• Cost Per Package: €15

MakeFlow calculates:

• Cost per ml = €15 ÷ 500ml = €0.03/ml

Using Package-Priced Materials

When you add this material to a product:

• Enter the amount you use (e.g., 150ml)
• MakeFlow calculates: (€15 ÷ 500ml) × 150ml = €4.50

Package Pricing vs. Unit Pricing

Unit Pricing (Simple)

For countable items bought and used individually.

Example: Buttons

• Cost: €0.50 per piece
• Use 10 buttons
• Cost: 10 × €0.50 = €5.00

Best for:

• Hardware (screws, buttons, clasps)
• Findings (earring hooks, jump rings)
• Individual items

Package Pricing (Bulk)

For bulk materials bought in containers.

Example: Glaze

• Package: 500ml for €15 (€0.03/ml)
• Use 150ml
• Cost: (€15 ÷ 500ml) × 150ml = €4.50

Best for:

• Liquids (glazes, stains, oils, fragrances)
• Bulk powders (clay, plaster, wax)
• Materials by weight (metals, resins)
• Anything sold in packages but used in portions

Real-World Examples

Ceramic Studio

Stoneware Clay:

• Sold in: 25kg bags
• Price: €40 per bag
• Setup:
  • Pricing Type: Package
  • Package Quantity: 25
  • Package Unit: kg
  • Cost Per Package: €40
• Cost per kg: €40 ÷ 25kg = €1.60/kg

Using it:

• Large bowl needs 2kg of clay
• Cost: (€40 ÷ 25kg) × 2kg = €3.20

Candle Making

Soy Wax:

• Sold in: 10lb boxes
• Price: $45
• Setup:
  • Pricing Type: Package
  • Package Quantity: 10
  • Package Unit: lb
  • Cost Per Package: $45
• Cost per lb: $45 ÷ 10lb = $4.50/lb

Using it:

• Small candle needs 0.5lb wax
• Cost: ($45 ÷ 10lb) × 0.5lb = $2.25

Woodworking

Danish Oil Finish:

• Sold in: 1 gallon cans
• Price: €60
• Setup:
  • Pricing Type: Package
  • Package Quantity: 1
  • Package Unit: gal
  • Cost Per Package: €60
• Cost per fluid ounce: €60 ÷ 128oz = €0.47/oz

Using it:

• Table needs 8oz of finish
• Cost: (€60 ÷ 128oz) × 8oz = €3.75

When to Use Package Pricing

Use package pricing when:

• ✅ Materials are sold in bulk containers
• ✅ You use portions, not full packages per product
• ✅ You need accurate cost tracking per item
• ✅ Package prices change occasionally

Don’t use package pricing when:

• ❌ You use entire packages per product
• ❌ Materials are sold individually (buttons, beads)
• ❌ You can’t measure how much you use

Updating Package Prices

When suppliers change prices:

1. Go to the material
2. Click Edit
3. Update Cost Per Package
4. Save

MakeFlow automatically recalculates the cost per unit. All future products will use the new price.

Note: Past orders keep their original costs for accurate historical data.

Common Pitfalls

Forgetting to Convert Units

Problem: Buy in liters, track in ml, but forget to convert.

Solution: MakeFlow handles conversions. Just enter the package unit correctly.

Mixing Up Package Quantity and Amount Used

Problem: Entering how much you use instead of how much comes in the package.

Solution:

• Package Quantity: What comes in ONE package from the supplier
• Amount Used: What you enter when adding to products

Not Updating Prices

Problem: Material costs increase but package price isn’t updated.

Solution: Review material costs quarterly or after restocking.

Tips for Accuracy

Track Waste Factor

Some materials have unavoidable waste (clay trimmings, spilled glaze, evaporation).

Options:

1. Pad usage amounts: If you typically waste 10%, use 1.1× the calculated amount
2. Periodic adjustments: Manually adjust inventory for waste

Verify Calculations

For your first few products with package-priced materials:

1. Calculate costs manually
2. Compare to MakeFlow’s calculation
3. Ensures you set up package pricing correctly

Unit Consistency

Within one material, stick to one unit:

• Don’t mix kg and g
• Don’t mix L and ml
• Pick one and stay with it

Advanced: Multi-Pack Purchases

Some suppliers offer bulk discounts:

• 1 bottle (500ml): €15
• 4 bottles (2000ml): €50 (€12.50 per bottle)

How to handle:

1. Update the material when you restock
2. Use the most common package size
3. Or use the current price per package

Example: You bought the 4-pack. Update material:

• Package Quantity: 500ml (individual bottle size)
• Cost Per Package: €12.50 (discounted price per bottle)

This keeps your material unit consistent while reflecting the actual cost.

Next Steps

• Adding Materials to Inventory
• Creating Products
• Understanding Pricing Calculator

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Need help? Contact support@makeflow.xyz