how do you calculate the correct HPP roast bean? Many forget this component | Operations & Systems Forum | Clorofile
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how do you calculate the correct HPP roast bean? Many forget this component

W
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many count HPP only from green bean prices. There are other components that if they don't count, margins look good but they're really thin.

often forgotten components:
- Shrinkage (light Zroast 12 -15%, medium 15-18%, dark 18-22%)
- LPG gas
- Electrocution cooling fan, destination, etc.
- drill cost per batch
- packaging material
- Overhead.

Has anyone calculated all this and can share the reality? or any components that I haven't mentioned yet?
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7 Replies
F
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that shrinkage is the easiest to forget. If you buy Zgreen bean 100kg and sell Zroast bean, all that comes out is 82-88kg. If you count the HPP from 100kg but sell it from 85kg, the numbers are wrong.
B
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engine depreciation doesn't come in often either. roaster machine is an asset that shrinks its value. The replacency costs have to be spread to every kilogram produced so that when the machine changes, the funds will be collected from the margins.
D
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it's usually new to when the engine breaks and there's no funds to replace. there's a lot of little roastry stuck here.
U
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not all overhead should be allocated equal per kg. it's important to consistently her method to be able to compare between periods.
K
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when you've calculated all these components, you're surprised by yourself. And from there can only set a true selling price of a cost plus a proper margin.
S
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there's a lot of small roastry that pays more value based on competition prices than its own cost. it's dangerous because competitors can miscalculate too.
R
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what about these tools? If it's still an Excel manual, it's a pretty high rate error with a lot of data. Any software that's actually handling cost tracking for the roadry?

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