THE EVERYDAY BUSINESS TOOLKIT / 02
Is the bigger pack
really better value?
Compare two suppliers by the cost of stock you can actually sell. Include delivery, expected wastage and packing, then compare a fair cost per item or kilogram.
| Comparison | Supplier A | Supplier B |
|---|---|---|
| Cost per sellable item | ||
| Expected sellable quantity | ||
| Pack plus delivery | ||
| Batch cost including packing |
Unit costs show up to four decimal places to help compare low-cost stock. Figures use unrounded calculations. Sellable items may be fractional because wastage is an expected average. The cost difference per 100 units is a comparison, not a prediction of purchases or profit.
ILLUSTRATIVE SHOP EXAMPLE
A lower pack price can hide a higher unit cost.
Imagine two suppliers of individually sold pet chews. Supplier A offers 100 for £40 plus £8 delivery. Supplier B offers 150 for £66 with free delivery. Add the same 5p packing cost per sellable chew.
Before wastage, B costs 49p per chew including packing, compared with A’s 53p. But suppose you expect to lose 5% of A’s stock and 15% of B’s stock through damage or expiry. The ranking changes.
| Measure | A | B |
|---|---|---|
| Expected sellable chews | 95 | 127.5 |
| Pack plus delivery | £48 | £66 |
| Cost per sellable chew, with packing | £0.5553 | £0.5676 |
A is about 1.24p cheaper per sellable chew on these assumptions. B still supplies more sellable stock, so compare quantities as well as unit costs.
How the comparison works
Sellable quantity = quantity received × (1 − wastage ÷ 100)
Cost per sellable unit = (pack cost + delivery) ÷ sellable quantity + packing per unitAfter comparing suppliers, use the resulting unit cost in the margin calculator. Avoid adding packing or delivery again if it is already included.
Can I compare loose food sold by weight?
Choose kilograms. Enter 12.5 for a 12.5 kg bag, for example, and enter any packing allocation per sellable kilogram. If you sell 500 g bags, multiply the cost per kilogram by 0.5 to find stock cost per bag and account for its packaging consistently. Do not compare a kilogram quantity against an item count.
Does a lower unit cost mean I should buy more?
No. Check product quality, storage space, shelf life and how quickly you sell it. A larger pack can tie up more cash even when the unit cost is lower. The calculator does not estimate demand, storage costs, finance costs, selling fees or your eventual selling price.
What if I do not know my wastage?
Start with zero to see the delivered cost, then try several plausible estimates. Use your own stock records as they develop. Wastage is an assumption here, not a forecast supplied by the tool.
Where should discounts and shared delivery go?
Enter the actual pack cost after discounts. If delivery covers several products, allocate a reasonable share to each pack, using a consistent method such as weight or order value. Do not enter the entire delivery charge against every pack.
Are my figures stored?
No. This calculator runs in your browser, without saving your inputs or sending them to SphereCraft. See our privacy information.