| Discussion Forum: Thread 310578 |
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| | | Author: | eggletv  | | Posted: | Oct 9, 2021 04:03 | | Subject: | Cost of Goods Sold | | Viewed: | 153 times | | Topic: | Selling | |
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| Hello, for those who track Cost of Goods Sold at the piece / minifigure level,
how do you calculate this? If you part out a set that has both minifigures and
pieces, what value do you assign to the figures vs the parts? We are struggling
with this right now. Thanks all!
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| | | | | Author: | Teup | | Posted: | Oct 9, 2021 05:41 | | Subject: | Re: Cost of Goods Sold | | Viewed: | 79 times | | Topic: | Selling | |
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| In Selling, eggletv writes:
| | Hello, for those who track Cost of Goods Sold at the piece / minifigure level,
how do you calculate this? If you part out a set that has both minifigures and
pieces, what value do you assign to the figures vs the parts? We are struggling
with this right now. Thanks all!
|
Bricklink really should have a feature for this, it has been suggested many times.
Anyway, in theory it would work like this:
Take the price you paid for the set. Take the part-out value of the whole set.
Divide that cost by that part-out value (gives you e.g. 0.45). Then multiply
the selling price of any part with that factor, and it gives you the cost of
that particular part.
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| | | | | | | Author: | eggletv | | Posted: | Oct 9, 2021 11:53 | | Subject: | Re: Cost of Goods Sold | | Viewed: | 43 times | | Topic: | Selling | |
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| In Selling, Teup writes:
| | In Selling, eggletv writes:
| | Hello, for those who track Cost of Goods Sold at the piece / minifigure level,
how do you calculate this? If you part out a set that has both minifigures and
pieces, what value do you assign to the figures vs the parts? We are struggling
with this right now. Thanks all!
|
Bricklink really should have a feature for this, it has been suggested many times.
Anyway, in theory it would work like this:
Take the price you paid for the set. Take the part-out value of the whole set.
Divide that cost by that part-out value (gives you e.g. 0.45). Then multiply
the selling price of any part with that factor, and it gives you the cost of
that particular part.
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Thank you!
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| | | | | Author: | cosmicray | | Posted: | Oct 9, 2021 11:24 | | Subject: | Re: Cost of Goods Sold | | Viewed: | 68 times | | Topic: | Selling | |
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| In Selling, eggletv writes:
| | Hello, for those who track Cost of Goods Sold at the piece / minifigure level,
how do you calculate this? If you part out a set that has both minifigures and
pieces, what value do you assign to the figures vs the parts? We are struggling
with this right now. Thanks all!
|
First, everybody does it differently, so keep that in mind.
Periodically I establish a multiplier. Trying to explain it in words is going
to be much more confusing than showing the method.
The inputs are:
A. what is the total value of your remaining inventory, as currently offered
for sale.
B. How much have you sold, at whatever price they paid (excluding shipping),
since the beginning of sales. You might call this gross sales.
C. How much was your cost for all the parts (or sets parted out) that you added
to your inventory, from the beginning until now. You might call this gross basis.
Calculate the Ratio as D = ( A + B ) / C
The cost of what you have sold can be calculated as E = B / D
The basis for your remaining inventory is F = C - E
COGS is the difference between F at the beginning of the reporting period and
F at the end of the reporting period.
Keep in mind that the ratio will change, if you run sales or re-value your
inventory. My long term observation is that my ratio has floated between 3 and
5. Other sellers, with other operating models, may get a different ratio.
As a practical example, assume you spent $100 for some sets, your beginning basis
is $100.
You listed all the parts at a total value of $400.
You then sold $150 worth of parts.
Your remaining inventory valuation (absent any adjustments) is $250.
Ratio calculation: ( 250 + 150 ) / 100 = 4.000
COGS calculation 150 / 4.000 = 37.50
Basis of remaining inventory is 100 - 37.50 = 62.50
But the key here is the difference between the starting basis ( $100 ) and the
ending basis ( $62.50 ).
You have to re-establish the ratio periodically to reflect all the sales and
the changes in pricing within your inventory. As the same time you need to calculate
the value of your remaining inventory ( A ).
HTH, and you're not too confused.
Nita Rae
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| | | | | | | Author: | Leftoverbricks | | Posted: | Oct 9, 2021 11:33 | | Subject: | Re: Cost of Goods Sold | | Viewed: | 52 times | | Topic: | Selling | |
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| In Selling, cosmicray writes:
| | In Selling, eggletv writes:
| | Hello, for those who track Cost of Goods Sold at the piece / minifigure level,
how do you calculate this? If you part out a set that has both minifigures and
pieces, what value do you assign to the figures vs the parts? We are struggling
with this right now. Thanks all!
|
First, everybody does it differently, so keep that in mind.
Periodically I establish a multiplier. Trying to explain it in words is going
to be much more confusing than showing the method.
The inputs are:
A. what is the total value of your remaining inventory, as currently offered
for sale.
B. How much have you sold, at whatever price they paid (excluding shipping),
since the beginning of sales. You might call this gross sales.
C. How much was your cost for all the parts (or sets parted out) that you added
to your inventory, from the beginning until now. You might call this gross basis.
Calculate the Ratio as D = ( A + B ) / C
The cost of what you have sold can be calculated as E = B / D
The basis for your remaining inventory is F = C - E
COGS is the difference between F at the beginning of the reporting period and
F at the end of the reporting period.
Keep in mind that the ratio will change, if you run sales or re-value your
inventory. My long term observation is that my ratio has floated between 3 and
5. Other sellers, with other operating models, may get a different ratio.
As a practical example, assume you spent $100 for some sets, your beginning basis
is $100.
You listed all the parts at a total value of $400.
You then sold $150 worth of parts.
Your remaining inventory valuation (absent any adjustments) is $250.
Ratio calculation: ( 250 + 150 ) / 100 = 4.000
COGS calculation 150 / 4.000 = 37.50
Basis of remaining inventory is 100 - 37.50 = 62.50
But the key here is the difference between the starting basis ( $100 ) and the
ending basis ( $62.50 ).
You have to re-establish the ratio periodically to reflect all the sales and
the changes in pricing within your inventory. As the same time you need to calculate
the value of your remaining inventory ( A ).
HTH, and you're not too confused.
Nita Rae
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If only
1) we had seller's tools (promised some 4 years ago)
2) orders and other data were not purged after 6 months
THAT would help!
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| | | | | | | Author: | eggletv | | Posted: | Oct 9, 2021 11:55 | | Subject: | Re: Cost of Goods Sold | | Viewed: | 74 times | | Topic: | Selling | |
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| In Selling, cosmicray writes:
| | In Selling, eggletv writes:
| | Hello, for those who track Cost of Goods Sold at the piece / minifigure level,
how do you calculate this? If you part out a set that has both minifigures and
pieces, what value do you assign to the figures vs the parts? We are struggling
with this right now. Thanks all!
|
First, everybody does it differently, so keep that in mind.
Periodically I establish a multiplier. Trying to explain it in words is going
to be much more confusing than showing the method.
The inputs are:
A. what is the total value of your remaining inventory, as currently offered
for sale.
B. How much have you sold, at whatever price they paid (excluding shipping),
since the beginning of sales. You might call this gross sales.
C. How much was your cost for all the parts (or sets parted out) that you added
to your inventory, from the beginning until now. You might call this gross basis.
Calculate the Ratio as D = ( A + B ) / C
The cost of what you have sold can be calculated as E = B / D
The basis for your remaining inventory is F = C - E
COGS is the difference between F at the beginning of the reporting period and
F at the end of the reporting period.
Keep in mind that the ratio will change, if you run sales or re-value your
inventory. My long term observation is that my ratio has floated between 3 and
5. Other sellers, with other operating models, may get a different ratio.
As a practical example, assume you spent $100 for some sets, your beginning basis
is $100.
You listed all the parts at a total value of $400.
You then sold $150 worth of parts.
Your remaining inventory valuation (absent any adjustments) is $250.
Ratio calculation: ( 250 + 150 ) / 100 = 4.000
COGS calculation 150 / 4.000 = 37.50
Basis of remaining inventory is 100 - 37.50 = 62.50
But the key here is the difference between the starting basis ( $100 ) and the
ending basis ( $62.50 ).
You have to re-establish the ratio periodically to reflect all the sales and
the changes in pricing within your inventory. As the same time you need to calculate
the value of your remaining inventory ( A ).
HTH, and you're not too confused.
Nita Rae
|
Thank you? LOL - It will take some time to absorb this, but I do appreciate
you taking the time to explain your system. I will try to wrap my head around
it. I'm sure I will have an "aha" moment soon! -Vicky
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USA, Ohio
Netherlands, Utrecht
