- Joined
- Sep 28, 2003
- Messages
- 1,235
Not had it happen directly to me yet but I am sure its fairly common, and certainly a hidden cost that the maker needs to take account of in one of two ways, or both:
Stephen
- Factor in a material consumption rate - every manufacture does, they measure yield or material consumption in terms of %. eg, for every 100 knives you start and buy materials for how many do you finish? Lets say its 80, then the material counsumption is 100/80 = 125%. So before you add on your profit margin, multiply your material costs and some labour cost (depending on how far gone on average before you need to scrap) by 125%. Of course this can be more complex by looking at consumption on blades, bolsters, handle material etc.
- If the manufacturer has recurring problems with the material they should secure a returen/replacement agreement with the supplier, or change supplier.
Stephen