JONES ACE HARDWARE
| Lumber
and building products are usually priced from our vendors in Price per
Thousand (per/m). This means that suppliers quote prices at a price per
thousand board feet. This makes it easier to quote and invoice buyers as
opposed to pricing by the piece for various dimensions and lengths. It's
often necessary to determine the cost per piece from the cost per
thousand quoted by a vendor.
One way to calculate the piece price from a price per thousand is to multiply the board feet in a piece by the per thousand price decimal equivalent. The decimal equivalent is the price per thousand taken to three decimal places. This means if the price per thousand is $355, the decimal equivalent is .355. A 2x4x-12' has 8 board feet (.667 x 12 = 8, or 2x4x12/12=8). With a per thousand price of $355, the piece price is $2.84 (8x.355). Remember that the price per thousand quoted is usually your cost. You'll need to add a markup per the guidelines set by you manager to set the selling price. All prices per thousand for lumber are calculated the same way. For a price per thousand over one thousand dollars be sure to move the decimal only three places. The decimal equivalent of a price per thousand $1,673 is 1.673. Cedar 1x8 siding priced at $1,673/m is $1.12 LFT (1x8/12X1.673). There is only .667 LFT in a board foot of 1x8. If the siding were 1x12 siding, it would be 1.673 per lineal foot - the same as the decimal equivalent for the per thousand price.
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This 1x8 siding can be priced at: Sheet goods are also priced by the thousand - the thousand square feet. The thickness of the product usually makes no difference - the per thousand price is adjusted to accommodate for different thicknesses. To calculate the sheet price for a 4'x8' panel at a price of $456 per thousand, multiply the coverage per sheet times the per thousand price decimal equivalent (.456): 32 X .456 = $ 14.59/SHEET When calculating prices always round up to the next highest whole cent. Margins/Markup Margin is defined as the percentage of the selling price represented by gross profit. Markup is the amount (usually stated as a percent of cost) added to the cost to arrive at a selling price. They are not the same!
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