Short Packs Require Unit Cost Comparison to Discover Best Price

June 20, 2012

When purchasing computer forms, or any product for that matter, price per box can be deceptive.  Don’t assume that all vendors pack the same number of forms per box.  To ascertain the best price, first determine the number of forms per box.  If it is different from one vendor to another, then calculate the unit cost, price per form (number of forms per box divided into the price per box), for each vendor’s offering to discover the best price.

Take our 9½” X 11″, 3-part, carbonless continuous computer forms for example.  We pack this product 1,100 3-part sets per box and sell it for $60/box.  Some of our competitors offer a short pack of 667 3-part sets per box and sell theirs for $45.00/box.  Still others pack 1,200 3-part sets per box and sell theirs for $70.00/box.  Which one offers the lowest price?

The only way to compare is to calculate the unit cost (price per form).  For our product, divide the per box price of $60.00 by the quantity per box of 1,100 forms—60.00 ÷ 1100 = $.0545 per form.  Use this same formula for the other two products:  45.00 ÷ 667 = $.0675 per form; 70.00 ÷ 1200 = $.0583 per form.  At $.0545 per form our product offers the lowest price.  The product with the lowest price per box actually had the highest unit cost at $.0675 per form, and therefore, was the most expensive of the three.

Of course, our product may not always have the lowest price per form, but you owe it to yourself to take the time to compare the unit cost of similar products that are packaged differently to make certain you get the best price.  Don’t take the stated prices at face value.  What may appear to be a bargain might just end up picking your pocket.

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