Daily Mineral Complex

What is my landed cost, and what is left after the channel takes its cut?

Formula

4 ingredients

Dose formCapsules per servingServings per containerCapsule size

Capsule fill0.86 of 0.95 ml (90%)

Ingredient	Per serving	Unit	Assay	Overage	$/kg	Lot min	Weighed out
							1.43 g476.19 mg each
							22 mg7.33 mg each
							11 mg3.67 mg each
							75 mg25 mg each

The run

What you order and how it gets made

Bottles in this run

Packaging

ContainerClosureLabel

Tamper-evident neckbandExpected by most retailers.DesiccantNeeded for probiotics and anything hygroscopic.

Conversion and quality

Filling and packing$/unitYield loss%Blend lost to the equipment.Setup and changeover$Charged once for the run.Testing and release$Identity, potency, heavy metals, micro.Inbound freight$Raw materials and components to the plant.

Nothing physically or commercially impossible in this formula. That is not the same as being ready to sell, but it is a real starting point.

Cost to make, per bottle

$3.41

$0.114 per serving. $17,027 for the whole run of 5,000.

Lead time: 10 weeks
Fill weight: 512.19 mg each

Raw materials$1.6147%

Delivery format$0.82824%

Packaging$0.36911%

Conversion$0.43013%

Quality$0.1705%

Line	Per bottle	Per run
Raw materials4 ingredients at 3 percent yield loss	$1.50	$7,485
Lot minimum overbuy4 materials sold in lots larger than this run needs	$0.111	$555
Capsule shells90 x Size 00 (most common)	$0.828	$4,140
Container275cc HDPE round	$0.246	$1,230
Closure45/400 ribbed, foam liner	$0.046	$230
LabelWhite BOPP, 4 colour	$0.073	$365
Tamper-evident neckbandTamper evidence	$0.0044	$22.00
Filling and packingCapsules line rate	$0.360	$1,800
Run setup and changeover$350 once, spread over 5,000 units	$0.070	$350
Testing and release$850 per batch, spread over 5,000 units	$0.170	$850
Total	$3.41	$17,027

Of $3.41, $0.240 is fixed cost spread over this run and $3.17 moves with every extra bottle. A green dot is a reference band, amber is typical trade practice, grey is a number you entered.

I move product

Distributors, wholesalers and retail buyers

You buy at$Blank uses cost to make.Freight$/eaDuty%Handling$/eaYour margin%Retail multiplexWholesale to shelf.

Landed cost

$6.54

$5.79 plus $0.750 to get it here

Wholesale price

$9.34

30% to you

Suggested shelf price

$18.69

leaves the retailer 50%

Gross across the run

$14,014

on 5,000 units

The ladder

Where every dollar goes between the plant and the shelf

Cost to make$3.41

Distributor buys at$5.791.70x cost

Landed cost$6.541.92x cost

Wholesale to retail$9.342.74x cost

Shelf price$18.695.49x cost