© 2018 by Hardwood Solutions, Inc.

Hardwood Solutions, Inc.
Chelsea, MI and Griffith, IN
info@hardwoodsolutions.com
734.475.0144

Cost & Margin Analysis

Material Cost
As raw material cost is generally the largest element of cost for most hardwood components,
profitability is often determined by results in the rough mill processes. Hardwood Solutions works
aggressively to assist clients in analyzing and modeling costs. Extensive experience has resulted in a
series of tools for cost analysis that are customized to each project.

Gross/Net Margin
Beyond cost analysis, gross margin analysis is critical in many moulding and millwork programs.
Determining the profitability of various products that develop from the rough-mill process generally
leads to strategy changes to minimize or eliminate low-margin products thereby increasing overall
profits. HS process strategies often are based upon "filtering" out low-margin materials, shifting
material to other markets.