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Sporting goods costing: one product, several cost sheets underneath

A racket, a running shoe, a bicycle each combine plastic, textile, wood, leather and metal in one item. How to cost each sub-assembly by its own trade and add them up without losing the detail.

Updated

This industry has no process chain of its own. It **borrows several other industries chains inside a single product** — a racket, a running shoe and a bicycle each combine molded plastic, textile, metal and sometimes wood or leather.

So this guide does not teach a new method. It covers how to **combine** several cost sheets, and the one place people go wrong when combining them.

Split the product into sub-assemblies first

Sub-assembly made ofUse this guideUnit of consumption
Molded plasticInjection moldingShot weight divided by cavities
Fabric, webbingGarment manufacturingConsumption from the marker
LeatherLeather goodsArea issued over units delivered
WoodFurnitureSheets, linear meters or sets
Machined or fabricated metalCNC machining or sheet metalStock issued
Bought-in assembliesMachine build, bought-out parts sectionPurchase price times quantity
You do not need six separate sheets in the system. Enter each sub-assembly as one material line in its correct unit — what matters is that you **obtained** each figure by that trade method, not how many sheets you created.

The combining error: one merged materials line

The temptation is to enter a single materials line with the total. It is quick, and the total is still right — but the sheet loses the ability to answer the next question, which is **which sub-assembly carries the cost**.

In this industry the answer is frequently surprising. A component that looks minor can outweigh the headline one, either because its material is expensive or because it takes disproportionate assembly time. With one line, you never find out.

Final assembly: the line most often dropped

A multi-part product needs joining, and that labor belongs to no sub-assembly. It gets omitted precisely because every sub-assembly already carries labor of its own.

Enter it as its own labor line — final assembly. On a product with many small parts it can exceed the labor in any individual sub-assembly.

The ten categories

Once the split is done, the other nine categories work normally: machine time and labor summed from the sub-assemblies plus the final assembly line; scrap, rework, outside processing, tooling, packaging, freight and overhead exactly as the other guides describe.

Packaging deserves attention in consumer goods — it is the first thing the buyer sees, so it is not the place to economize first.

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Sporting goods costing: one product, several cost sheets underneath | costdown.org