Sunday, September 30, 2012

Net Weight and Gross Weight price calculation

We always quote our bitumen orders on a gross weight basis. it means the price considers the total weight of drums and bitumen in it both. it's obvious that we have to do that for ease of accounting and everybody knows you have to be competitive in your quoting anyway!

but many clients ask for a conversion of price based on net weight. they may need to know how much the bitumen itself costs for them. well, they deserve the right too!

let's see:
our drums (Type A drums as normal drums) contain 182 Kg of bitumen. the drum weight is 9.5 - 10 kg
so the conversion rate would be 192/182 which equals to 1.0549

it means if you have been quoted 450 USD for gross weight, the net weight cost is 474.7 USD
in another way, the net weight price is 5.5 percent more than the gross price.

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