How to Calculate Pallet Wrapping Cost

Need to know what you are spending to wrap each pallet-load of your merchandise? Here's How:

Steps

  1. Image titled Calculate Pallet Wrapping Cost Step 1
    1
    Wrap the pallet as you normally would.
  2. Image titled Calculate Pallet Wrapping Cost Step 2
    2
    Remove the film from the wrapped pallet, wad it up in to a ball and weigh it on the digital scale. Record the result as you'll need it later. Let's assume the number is 8 ounces.
  3. Image titled Calculate Pallet Wrapping Cost Step 3
    3
    Next, calculate the number of pounds on each roll of stretch wrap film using this industry standard formula for rolls with 3' diameter cores:
    • This example uses a roll of 15" 80 gauge x 1,500' roll of stretch film:
    • (Length x Width x Gauge) ÷ 2,500 = pounds of film per roll
    • (1,500 x 15 x .8) ÷ 2,500 = 7.2 pounds of film per roll.
  4. Image titled Calculate Pallet Wrapping Cost Step 4
    4
    Next, calculate the number of ounces of film on each roll:
    • (Pounds of film x 16 ounces in a pound) = Ounces of film per roll
    • Example: (7.2 x 16) = 115.2 ounces per roll of film
  5. Image titled Calculate Pallet Wrapping Cost Step 5
    5
    Next, calculate the number of wrapped pallets per roll of film:
    • (Ounces per roll ÷ Ounces per pallet from Step 2) = # of wrapped pallets per roll
    • Example: (115.2 ÷ 8) = 14.4 wrapped pallets per roll
  6. Image titled Calculate Pallet Wrapping Cost Step 6
    6
    Finally, calculate your cost to wrap one pallet. Let's assume your cost per roll is $15.00:
    • (Cost per roll ÷ Wrapped pallets per roll from Step 6) = Cost per finished pallet
    • Example: ($15.00 ÷ 14.4 ) = $1.04 of film per wrapped pallet.

Things You'll need

  • One pallet of merchandise
  • One roll of pallet stretch film
  • A digital scale that weighs in ounces

Article Info

Categories: Economics | Online and Home Businesses