Private Label & OEM1 min read

Coating Purchase Cost Averages: Weight Prices by the Quantity Bought

The simple average of two unit prices is not the average cost of the stock if different quantities were purchased at each price. Weight each price by its corresponding quantity.

Updated · NANOLAB Knowledge

The key distinction

Use comparable units and a consistent included-cost basis. Separate this operational calculation from any accounting valuation method the business is required to use.

Practical checks

  1. Calculate the total included purchase cost.
  2. Divide by the total equivalent units.
  3. Preserve the quantities and price basis behind the result.

Example

Arithmetic example: ten units at 8 and ninety units at 10 cost 980 in total. The weighted average is 9.80 per unit, while the simple average of the two prices is 9.

Scope and limits

The figures are hypothetical and do not describe NANOLAB pricing. Do not combine different bottle sizes as equivalent units unless the comparison has been converted to a defined common basis.

Related guidance

Discuss bulk supply and private-label requirements with NANOLAB. Use the current product documentation for formulation-specific instructions.