Count · Framework 1 of 14 · 3 min read
The cost map
What does a kilo really cost us?
بالعربيةاحسبوا كل تكاليف منتج واحد لشهر، الظاهرة والمخفية، ثم اقسموها على الكيلوات المنتَجة: هذه تكلفتكم الحقيقية للكيلو.
When to use it
Before you set any price, then once a month. And once in summer, when milk is scarce and prices rise.
The framework
| Changes with quantity | Fixed every month | |
|---|---|---|
| Visible | Milk, salt and other inputs, gas, packaging and labels, transport | Workers, rent |
| Hidden | Waste and returns, feed | Your time and your family's, electricity, generator and water, vet and vaccines, equipment upkeep, lab tests, marketing |
- Write down everything that leaves the business money in the daily notebook, day by day, for one month.
- At the end of the month, add what doesn't show up in the notebook:
- Your time: hours × what you would pay someone else to do the same work.
- Milk from your own animals: at the price the milk collector would have paid you, not at zero. Then don't count feed and the vet a second time.
- Equipment: its price ÷ the number of months it will work.
- Anything paid once a year: ÷ 12.
- Add up the month's expenses and hidden costs.
- Divide the total by the kilos you produced that month.
What you walk away with
One number: the real cost per kilo this month. This is the "floor" in framework 2.
Tools
The daily notebook, and the "Month" sheet in the spreadsheet · Ready prompt 1