Diaper Service Cost Analysis
When I first started operating a diaper service, the price per week was an arbitrary number that I inherited from the previous owner. It didn’t have a whole lot of meaning. I knew what it cost to have our laundry done–per pound. I knew what it cost to supply the bags and the deodorizing disks and the hampers–up front.
But how to convert all that information to a weekly cost? And how to incorporate other expenses, like the cost of operating my vehicle?
Long story short, I got busy and built an Excel spreadsheet to help me do just that. When I first saw my true cost of doing business, I was stunned. That practice of adding on a second baby within a family for just a few dollars extra HAD TO GO. I was losing money.
Needless to say, this spreadsheet became an invaluable tool for me, and it can be for you, too. It allows you to enter your current cost on diapers, all supplies used in your service, and vehicle expenses, and then it figures the cost associated with offering service on a weekly basis.
Sure, you can do this by hand, but it’s time-consuming and error-prone. With this spreadsheet, you do not have to do any calculating. All you do is enter the price of the items, and the spreadsheet does the figuring for you.
All cells are clearly marked by color so that you know in which cells to enter information. Every area also has notes attached to explain exactly what that cell or group of cells is for.
The spreadsheet includes three pages:
Costs – enter the actual costs of all items related to your service
Quotes – enter the specifics of a customer’s order and get the exact cost of their weekly service
Rate Chart – a handy, at-a-glance chart that tells you what a basic order for any size of diaper costs, as well as the cost per ten
This spreadsheet will also be useful to you in the planning stages of your business. It will help you to analyze the costs of doing service, as well as to figure what prices to advertise and/or use in your market research and feasibility studies. It will guide you in remembering to include all the various expenses that go with diaper service–expenses that you may not otherwise remember–thus saving you valuable dollars that you wouldn’t realize you were spending until it was too late.