19th September 2011

Do The Math

Let’s face it,  we’re a world accustomed to buy one get one free,  everything’s on sale,  coupons and discounts and special offers.  You can always find a website or a store or an e-mail in your inbox that will claim to have more for less,  better for cheaper, or a deal you won’t find anywhere else.   The problem is that with all these deals and specials and buy one get one free  it’s hard to know where to find the best price and whether the deal you’re being offered is really the best deal.   Unless, of course,  you do the math.

Doing the math doesn’t take that much time to do,  and the results can help you be sure you’re getting the best deal, so it is worth doing.   It’s also quite simple.   All that’s required to do the math is a deal,  some comparative pricing and a calculator.   The process works like this:

Suppose you’ve gotten an e-mail from a company offering a buy one get one free special.  In this case,  it’s 250 piece packs of cutaway backing.   If you buy one at x price,  you get another for “free”.   The first thing to do is run the numbers on this deal.   Divide the price by the number of sheets of backing you’ll get for that price (500) and that will give you your cost per sheet.   Once you have this number,  you need something to which it can be compared.  That’s where a little research comes in.   Do a search and find out for what price other companies are offering 500 sheets of the same type of backing.  Then do the math on those prices.    You may find out that the deal is really a good deal.  You may find out that another company has a better price per sheet.  Whatever the outcome,  at least you’ll know, and you’ll be sure that you’re getting the most for your hard earned dollars.

This process can work for anything.  Want to figure out which machine embroidery thread is the best value? Figure out your income per hour when the machine is sewing at top capacity and then subtract the time it takes to repair each thread break.   Each second of production you lose reduces your income per hour,  so a thread with less breaks is going to be a better value,  even if the purchase price is more expensive.

The thing to remember is that any company can tell you they’re offering a deal,  but it’s the math that confirms whether a deal really saves you money.   Doing the math will help you make sure you’re getting the most for the money you’ve worked hard to make, which is, in the end, the goal for which we all are shooting.

This entry was posted on Monday, September 19th, 2011 at 11:19 am and is filed under Machine Embroidery Supplies, Making Your Business Grow, Shop EnMart. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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  1. 1 On November 2nd, 2011, Five Tips for Pricing Sublimation « SubliStuff said:

    [...] 4:  Know Your Costs –  As I’ve recommended in the past,  doing the math is always helpful.   Make sure you understand what it costs you to make an item,  in materials [...]

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