How to estimate cost per finished unit
Enter flower cost in dollars per pound, target fill in grams per unit, and expected process loss as a percentage below 100. Enter cone, packaging and overhead in dollars per finished unit, direct labor in minutes per unit and the wage in dollars per hour. Enter 0 for a cost you do not incur.
Formula
The retained fraction is 1 minus process loss divided by 100. Divide target fill by that fraction to estimate the grams of input per unit. Multiply by flower cost per gram (cost per pound divided by 453.592) for flower cost per unit. Labor cost per unit is minutes divided by 60, times hourly wage. Add flower, labor, cone, packaging and overhead for total unit cost. Divide 453.592 by input grams and round down for the number of full units per pound.
Enter $800 per pound, 1 g per unit, 5% loss, an $0.08 cone, $0.12 packaging, 0.75 labor minutes at $24 per hour, and $0.10 overhead. The estimate is $1.86 for flower, $0.30 for labor and $2.46 total per unit. One pound yields an estimated 430 full units.
For a supplier-side price check, carry the estimated unit cost to the Wholesale Margin Calculator.


