GlossaryKind of term: Cost and economicsPrice per kilo
What is the price per kilo?
Price per kilo is the price per kilogram at which you buy material, with or without extras for size, quantity, sawing and alloy surcharge.
Metal is usually priced by the kilo; for plastics the supplier often charges per sheet or per metre of rod, and you work back to kilos yourself if you want to compare. A price per kilo can only be compared once it is clear what it includes: the base price alone, or the extras as well.
What does the price per kilo depend on?
The invoice price usually consists of a base price plus extras: for size and product form, small quantities, sawing to length, a certificate, carriage and, for stainless and alloy steel, an alloy surcharge that moves with the prices of nickel, chromium and molybdenum among others. For aluminium and copper alloys the base price largely moves with the metal market. How large the extras are depends on supplier, quantity and timing, so a price per kilo without a date and a breakdown says little.
How does the price per kilo work in practice?
The usual convention is to take the material cost of a part as the weight of the stock times the price per kilo, plus whatever is charged separately, such as sawing and carriage. Working from the net weight of the model usually understates the material cost, because you buy the whole blank. An old price per kilo can be too high or too low, depending on how the market has moved since. For small pieces, sawing charges, minimum quantities and carriage can push the price per kilo well above that of a full bar.
What is the price per kilo often confused with?
Price per kilo is not the material cost: that is the price per kilo times the weight of the stock, with saw loss and allowance in it. Your price per kilo is not a market quotation either: an index shows the market trend, while your supplier charges its own price for your size and quantity.
How do you see the price per kilo in Blake?
In Blake you record your own purchase price for each material in the catalogue, with source and date; earlier prices remain visible as history. A market reference with source and date can sit beside it for comparison, never as a purchase price. In the estimate, material gets a line of its own. More on materials.
Frequently asked questions
How much does aluminium cost per kilo?
That depends on alloy, product form, size, quantity and timing, and varies between suppliers. Ask for a price for the size you buy and record it with its date. A public index shows whether the market has moved since.
How do you work out the material cost of a part?
Size the stock: the block or bar dimensions with allowance and clamping margin. Convert the volume to kilos with the density and multiply by your price per kilo. Add sawing and carriage if they are charged separately.