OEM Pricing Simulator

Calculate Optimal Prices from Costs and Lot Sizes

Simply input variable costs, fixed costs, lot sizes, and target profit margin to visualize recommended selling prices and profit structure by lot size. Use as a reference when preparing quotes.

Enter Costs & Conditions

Variable Costs (per unit)

Raw Material Cost

JPY/unit

Direct Labor Cost

JPY/unit

Packaging Material Cost

JPY/unit

Other Variable Costs(filling, inspection, etc.)

JPY/unit

Fixed Costs (per production run)

Setup & Cleaning Cost

JPY/run

Quality Inspection Cost

JPY/run

Other Fixed Costs(utility allocation, etc.)

JPY/run

Lot Size Settings

Minimum Lot

units

Standard Lot

units

Large Lot

units

Target Profit Margin

Target Gross Margin

Set within the range of 0–80%

Simulation Results

Item	Minimum Lot	Standard Lot	Large Lot
Lot Size	100 units	500 units	2,000 units
Variable Cost/unit	145.0 JPY	145.0 JPY	145.0 JPY
Fixed Cost Allocation/unit	500.0 JPY	100.0 JPY	25.0 JPY
Total Cost/unit	645.0 JPY	245.0 JPY	170.0 JPY
Recommended Selling Price	992.3 JPY	376.9 JPY	261.5 JPY
Gross Profit/unit	347.3 JPY	131.9 JPY	91.5 JPY
Gross Margin	35.0%	35.0%	35.0%
Total Revenue	99,231 JPY	188,462 JPY	523,077 JPY
Total Gross Profit	34,731 JPY	65,962 JPY	183,077 JPY

Unit Price Breakdown Comparison (per unit)

Minimum Lot992.3 JPY

Variable Cost

Fixed Allocation

Gross Profit

Standard Lot376.9 JPY

Variable Cost

Fixed Allocation

Gross Profit

Large Lot261.5 JPY

Variable Cost

Gross Profit

Variable CostFixed AllocationGross Profit

Key Insights

The unit price for the minimum lot is 3.8× that of the large lot. When handling small lots, be sure to clearly explain this price difference to clients.

You can secure a minimum gross profit of 34,731 JPY per production run.

Pricing Tips

Correctly Classify Fixed and Variable Costs

By categorizing raw materials, labor, and packaging as variable costs (costs proportional to production volume) and setup and inspection fees as fixed costs (costs per production run), you can accurately understand how unit prices change with lot size.

Be Prepared to Explain Price Differences by Lot Size

The price difference between small and large lots comes from fixed cost allocation. Being able to explain to clients why small lots cost more, with clear rationale, builds trust and credibility.

Common Mistakes to Avoid

Forgetting setup costs: Excluding cleaning and changeover costs from quotes risks losses on small-lot orders.
No small-lot surcharge: Accepting orders at a flat rate without considering fixed cost allocation means small-lot projects erode your profits.
Setting profit margins too low: To prepare for raw material price increases and defect risks, we recommend maintaining a minimum gross margin of 30% or higher.

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Enter Costs & Conditions

Variable Costs (per unit)

Raw Material Cost

JPY/unit

Direct Labor Cost

JPY/unit

Packaging Material Cost

JPY/unit

Other Variable Costs(filling, inspection, etc.)

JPY/unit

Fixed Costs (per production run)

Setup & Cleaning Cost

JPY/run

Quality Inspection Cost

JPY/run

Other Fixed Costs(utility allocation, etc.)

JPY/run

Lot Size Settings

Minimum Lot

units

Standard Lot

units

Large Lot

units

Target Profit Margin

Target Gross Margin

Set within the range of 0–80%

Simulation Results

Item	Minimum Lot	Standard Lot	Large Lot
Lot Size	100 units	500 units	2,000 units
Variable Cost/unit	145.0 JPY	145.0 JPY	145.0 JPY
Fixed Cost Allocation/unit	500.0 JPY	100.0 JPY	25.0 JPY
Total Cost/unit	645.0 JPY	245.0 JPY	170.0 JPY
Recommended Selling Price	992.3 JPY	376.9 JPY	261.5 JPY
Gross Profit/unit	347.3 JPY	131.9 JPY	91.5 JPY
Gross Margin	35.0%	35.0%	35.0%
Total Revenue	99,231 JPY	188,462 JPY	523,077 JPY
Total Gross Profit	34,731 JPY	65,962 JPY	183,077 JPY

Unit Price Breakdown Comparison (per unit)

Minimum Lot992.3 JPY

Variable Cost

Fixed Allocation

Gross Profit

Standard Lot376.9 JPY

Variable Cost

Fixed Allocation

Gross Profit

Large Lot261.5 JPY

Variable Cost

Gross Profit

Variable CostFixed AllocationGross Profit

Key Insights

The unit price for the minimum lot is 3.8× that of the large lot. When handling small lots, be sure to clearly explain this price difference to clients.

You can secure a minimum gross profit of 34,731 JPY per production run.

Pricing Tips

Correctly Classify Fixed and Variable Costs

Be Prepared to Explain Price Differences by Lot Size

The price difference between small and large lots comes from fixed cost allocation. Being able to explain to clients why small lots cost more, with clear rationale, builds trust and credibility.

Common Mistakes to Avoid

Forgetting setup costs: Excluding cleaning and changeover costs from quotes risks losses on small-lot orders.
No small-lot surcharge: Accepting orders at a flat rate without considering fixed cost allocation means small-lot projects erode your profits.
Setting profit margins too low: To prepare for raw material price increases and defect risks, we recommend maintaining a minimum gross margin of 30% or higher.