Frequently asked Questions

What is the meaning of cost2price?

cost2price is an online tool for the quick parametric determination of the overhead costs of a company. This is based on our proven scenario analyser, which has been used since 2009 and is part of the 4cost suite of models. The results have been validated over this long period. The Model has now been optimized for mobile use. Based on four main data, revenue, number of employees, number of employees in development / construction, and the number of production sites and also the desired profit will determine the expected overheads calculation using a classic overhead calculation scheme. The initial data can be easily researched from the publications of the companies, e.g. using Internet portals or in the Federal Gazette publications.

Which calculation scheme is cost2price using?

The base for the calculation of Overheads is the manufacturing costs of a supplier, using traditionally all individual, overhead and special costs of material, machine and personnel. The overheads for development, administration and sales refer to these manufacturing costs. After summing up these overhead costs with the manufacturing costs, the prime costs, which are then multiplied by the “Risk & Profit” surcharge.
Note: In relation to the manufacturing costs, the percentage risk & profit increases, this is the reason why we also output and show it in the diagram.

Why is there no currency and country reference in the input data?

Our research and evaluations have depicted that the currency and country reference are already covered by the data entered as “hard data”. Regardless of the currency and the country, these main factors also reflect the differences in the overheads of different countries and currencies.

Where does the material overheads reflect too?

As a “by-product”, so to say, our cost2price also provides the user with the appropriate material overhead surcharge. The material overhead is always part of the manufacturing costs and has no additional effect on the calculation. The material overhead rate issued relates to the material overhead costs that are usually to be applied in relation to the actual material direct costs.

What are the additional benefits using the cost2price full version?

The full version unlocks (supplies) additional features and information:

  • In addition to manufacturers, i.e. producers of components / assemblies, it is possible to evaluate service providers. With an adapted and enhanced parametric, we are able to evaluate engineering offices, software manufacturers or waste disposal companies, for example.
  • In addition to the total cost factor, the individual parametric overhead surcharges are also displayed. This provides the user with the necessary argumentation in supplier discussions.
  • Take advantage of the possibility of detailing the overhead surcharges by additionally entering the company factors, industry- and market conditions! By taking the special market and company data into account, this makes the overhead surcharges plausible for discussion with partners.
  • If only a “first shot”, is needed, it is possible to collapse the details information for clarity.
  • By saving your suppliers in a profile, you can access results that have already been previously processed at any time.
In which way can I use the results?

The results of cost2price offer the opportunity to conduct the discussion about prices with known manufacturing costs factually and validly. By being able to map all relevant conditions, the plausibility check of the supplier’s information can be quickly evaluated and commented.

How can I determine the production costs to get the total cost for the pricing calculation?

Our CostCompetenceCenter c³ offers you the easiest and quickest way to evaluate components and small assemblies. Submit your data and get an expert validated cost estimate!
Our intensely tested module aces, which has been in use for almost 30 years, with its unique and diverse possibilities offers you our expert knowledge in the form of a parametric cost estimate! ⇒ Determine and evaluate manufacturing costs? No problem! Of course, our entire value engineering team is also available for cost estimation projects!

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