Service 01 · Per Analysis · $1,200 USD
Know what each product actually earns you.
A detailed cost breakdown — materials, labor, overhead — per product line, so the margins you rely on are ones you can actually verify.
What this delivers
A clear cost picture for every product you make.
At the end of this engagement, you'll have a documented cost breakdown for each product — materials split by component, labor allocated by production stage, overhead absorbed and explained. No estimates carrying forward unexamined, no broad averages hiding loss-making lines.
What that unlocks is practical: pricing conversations become straightforward, product mix decisions have a foundation, and the question of which lines are actually pulling their weight gets a clear answer.
Per unit
Cost breakdown at the unit level, not just batch totals
Plain
Explained in language your team can read and use
Actionable
Results you can take directly into pricing or planning
The situation many manufacturers find themselves in
Margins that look fine until you look closely.
It's a common position: the overall business is producing a margin, but individual product lines haven't been examined properly in some time. Materials are tracked, but overhead gets averaged across everything. Labor time gets estimated rather than allocated. Certain products have had price increases that nobody's modeled fully.
The result is a set of margins that feel approximate — and probably are. A few lines may be contributing more than they appear to. Others may be contributing less. Without a proper breakdown, it's difficult to tell which is which.
That uncertainty makes pricing negotiations harder, production planning less precise, and any conversation about product mix feel inconclusive. It's not a crisis, but it's a gap worth closing.
Overhead absorbed at a broad average rate
Products with different production profiles end up sharing the same overhead assumption
Labor time estimated, not measured
Standard rates applied uniformly where actual time by product would tell a different story
Margin figures at entity level only
Overall business profitability tracked, but not broken down by individual product or line
Pricing based on partial information
Quotes and price lists built on cost estimates that haven't been revisited as input costs have shifted
How this service works
A systematic look at each product's true cost.
The analysis starts with your products — typically working through each line or variant in scope — and builds a cost model from the ground up. Materials are costed at actual or recent purchase prices, with yields and waste factors applied where relevant. Labor is allocated by process step, using your actual production rates. Overhead is distributed using a method suited to your operation, which we'll explain and document.
The output is a cost card for each product: a structured breakdown showing exactly where every dollar of cost sits. From there, margin calculations become straightforward — you can see contribution at unit level, and compare across lines on a consistent basis.
Where the numbers reveal something noteworthy — a line with thinner margins than expected, or a product carrying a disproportionate share of overhead — we'll note it clearly so the finding is easy to act on.
Material cost mapping
Each component costed individually, including wastage and yield factors, using your actual supplier pricing.
Labor allocation by stage
Production steps identified and labor time assigned per stage, rather than averaged across the product range.
Overhead absorption method
Fixed and variable overheads absorbed using a clearly documented basis — machine hours, labor hours, or another driver suited to your process.
Margin summary per product
Gross and contribution margins shown at unit and batch level, with a summary comparison across all products in scope.
Findings noted plainly
Any significant observations flagged in plain language — no technical jargon, no buried footnotes.
Working together
What the process looks like from your side.
Initial conversation
We start with a call or message exchange to understand which products are in scope, what cost records you currently have, and what questions you most want the analysis to answer.
Data gathering
You share the information we need — purchase records, bills of materials if available, labor time data, overhead cost totals. We work with what exists and ask only for what's necessary.
Analysis and review
We build the cost model and draft the analysis. If anything needs clarifying during this stage, we'll come back with a specific question rather than guessing. A draft is shared before the final version is issued.
Delivery and walkthrough
The final cost analysis is delivered with a written walkthrough. We're available to go through the findings together and discuss what they mean for your pricing or production planning.
Investment
$1,200 per analysis
This is a single-engagement fee covering the full scope of the analysis — from the initial data review through to the final cost cards and margin summary. There's no ongoing commitment attached.
The price covers a standard product range. For operations with a larger number of distinct lines, we're happy to discuss a scope that fits before committing. There won't be surprises mid-way through.
What's included:
- Full cost card per product (materials, labor, overhead)
- Margin summary at unit and batch level
- Overhead absorption method documented and explained
- Cross-product comparison on a consistent basis
- Written findings and observations in plain language
- Delivery review call to go through results together
Per analysis
$1,200
USD · one-time engagement fee
A straightforward fee for a defined scope of work. If your situation is more complex, we discuss and agree on scope before any work begins.
Why this works
The methodology behind the numbers.
Cost accounting for manufacturing is a well-developed discipline with established methods for material costing, overhead absorption, and margin calculation. What differs between operations is how those methods are applied — which allocation drivers make sense for your production process, how labor time is captured, which overhead pools are meaningful.
The analysis we produce applies standard cost accounting principles to your specific operation. The methods used are documented so you can see and verify what was done, and the results can be revisited or updated as your product mix or input costs change.
Typical timeline
Most analyses are completed within two to three weeks of receiving the necessary data. Complex operations with many product variants may take a little longer, and we'll indicate this in advance.
What we need from you
Purchase records, production data, and overhead cost totals for a representative period. Bills of materials and labor time records help, but we can work with what you have and flag any gaps clearly.
How results are measured
The output is a documented cost card and margin table. Accuracy is only as good as the underlying data — we'll note any assumptions made and where the figures should be treated as directional rather than precise.
Our commitment
Clear work, explained honestly.
We're not in the business of producing impressive-looking documents that are difficult to interrogate. The analysis we deliver is one we're prepared to walk through line by line and explain the reasoning behind every figure.
If at the review stage something in the output doesn't make sense to you, we address it. If an assumption turns out to be wrong once we see the full data picture, we'll note it and revise. The goal is a result you can use with confidence, not one you have to take on trust.
Draft review before final delivery
You see the work before it's finalised and can raise questions
Methodology documented
Every approach explained so you can verify and revisit the work
No obligation to engage further
The analysis stands on its own — no ongoing commitment is assumed
Scope agreed upfront
What's covered is defined before work starts — no scope creep or mid-engagement surprises
Getting started
A straightforward path from here.
Send a message
Use the contact form to describe your situation briefly — which products you want to look at, what information you have to hand, and what you're most hoping to understand.
Scope confirmation
We'll come back within two business days. If the scope is clear, we'll confirm the engagement. If there are questions first, we'll ask them before proceeding.
Work begins
Once we have the data we need, we build the analysis and keep you informed. The draft is with you for review before anything is finalised.
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Explore other ways we can help.
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Standard Costing & Variance Reporting
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Inventory Valuation Support
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Product Costing & Margin Analysis
Ready to see what your products actually cost?
If you'd like a clearer picture of your product margins, a message is all it takes to get started. We'll confirm scope and take it from there.
Get in touch