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| | | Author: | legoranger00  | | Posted: | Oct 25, 2022 12:57 | | Subject: | Average price vs. quantity average price | | Viewed: | 141 times | | Topic: | Price Guide | |
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| I list the items in my store by the last 6 months sales average price or quantity
average price. Which ever is lower. What’s the difference between average price
and quantity average price? Should I list the items by the current sale prices
or not?
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| | | | | Author: | macebobo | | Posted: | Oct 25, 2022 13:03 | | Subject: | (Cancelled) | | Viewed: | 57 times | | Topic: | Price Guide | |
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| | (Cancelled) |
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| | | | | | | Author: | SylvainLS | | Posted: | Oct 25, 2022 13:07 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 72 times | | Topic: | Price Guide | |
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| In Price Guide, macebobo writes:
| | In Price Guide, legoranger00 writes:
| | I list the items in my store by the last 6 months sales average price or quantity
average price. Which ever is lower. What’s the difference between average price
and quantity average price? Should I list the items by the current sale prices
or not?
|
Average price includes only the transactions where 1 qty was purchased.
Quantity average price includes the transactions where the quantity 2 or more.
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No, all lots are always included but the calculation is different:
Average = take all lot prices, divide by number of lots.
Quantity average = take all parts prices¹, divide by number of parts.
(¹ lot price multiplied by number of parts in the lot)
Example:
2 lots to consider:
— 1 with qty 1 at €10
— 1 with qty 10 at €1
average = (€10 + €1) / (1 + 1) = €5.5
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.01
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| | | | | | | | | Author: | 1001bricks | | Posted: | Oct 25, 2022 13:08 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 61 times | | Topic: | Price Guide | |
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| | | No, all lots are always included but the calculation is different:
Average = take all lot prices, divide by number of lots.
Quantity average = take all parts prices¹, divide by number of parts.
(¹ lot price multiplied by number of parts in the lot)
Example:
2 lots to consider:
— 1 with qty 1 at €10
— 1 with qty 10 at €1
average = (€10 + €1) / (1 + 1) = €5.5
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.01
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Agreed.
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| | | | | | | | | Author: | macebobo | | Posted: | Oct 25, 2022 13:19 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 56 times | | Topic: | Price Guide | |
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| In Price Guide, SylvainLS writes:
| | In Price Guide, macebobo writes:
| | In Price Guide, legoranger00 writes:
| | I list the items in my store by the last 6 months sales average price or quantity
average price. Which ever is lower. What’s the difference between average price
and quantity average price? Should I list the items by the current sale prices
or not?
|
Average price includes only the transactions where 1 qty was purchased.
Quantity average price includes the transactions where the quantity 2 or more.
|
No, all lots are always included but the calculation is different:
Average = take all lot prices, divide by number of lots.
Quantity average = take all parts prices¹, divide by number of parts.
(¹ lot price multiplied by number of parts in the lot)
Example:
2 lots to consider:
— 1 with qty 1 at €10
— 1 with qty 10 at €1
average = (€10 + €1) / (1 + 1) = €5.5
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.01
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TIL, thanks for correcting me and the visual.
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| | | | | | | | | | | Author: | SylvainLS | | Posted: | Oct 25, 2022 14:09 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 40 times | | Topic: | Price Guide | |
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| In Price Guide, macebobo writes:
| | […]
TIL, thanks for correcting me and the visual.
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Happy to help 
Also, the qty average is the average price per part you’d pay if you were to
buy everything that’s available (or that you’d have paid if you had bought everything
that was sold).
While the average is… well, pretty much meaningless.
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| | | | | | | | | Author: | Jan_K | | Posted: | Oct 25, 2022 14:04 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 57 times | | Topic: | Price Guide | |
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| In Price Guide, SylvainLS writes:
[snip]
| |
Example:
2 lots to consider:
— 1 with qty 1 at €10
— 1 with qty 10 at €1
average = (€10 + €1) / (1 + 1) = €5.5
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.01
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+ a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
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| | | | | | | | | | | Author: | SylvainLS | | Posted: | Oct 25, 2022 14:12 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 45 times | | Topic: | Price Guide | |
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| In Price Guide, Jan_K writes:
| | […]
| | qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.01
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+ a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
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Oopsies.
My future epitaph: “There’s 3 kinds of people: those who can’t count.” 
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| | | | | | | | | | | Author: | 1001bricks | | Posted: | Oct 25, 2022 14:27 | | Subject: | (Cancelled) | | Viewed: | 36 times | | Topic: | Price Guide | |
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| | (Cancelled) |
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| | | | | | | | | | | Author: | 1001bricks | | Posted: | Oct 25, 2022 14:28 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 49 times | | Topic: | Price Guide | |
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| | | + a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
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Yes/no - if you round it at 2 decimals it's 1.82€
Hoping it's right
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| | | | | | | | | | | | | Author: | legoranger00 | | Posted: | Oct 25, 2022 16:01 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 33 times | | Topic: | Price Guide | |
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| In Price Guide, 1001bricks writes:
| | | | + a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
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Yes/no - if you round it at 2 decimals it's 1.82€
Hoping it's right
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Can anybody give me an example in American money?
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| | | | | | | | | | | | | | | Author: | SylvainLS | | Posted: | Oct 25, 2022 16:08 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 36 times | | Topic: | Price Guide | |
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| In Price Guide, legoranger00 writes:
| | […]
Can anybody give me an example in American money?
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Here you are:
2 lots to consider:
— 1 with qty 1 at $10
— 1 with qty 10 at $1
average = ($10 + $1) / (1 + 1) = $5.5
qty average = ($10 × 1 + $1 x 10) / (10 + 1) = 20/11 = $1.82
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| | | | | | | | | | | | | | | Author: | macebobo | | Posted: | Oct 25, 2022 16:24 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 37 times | | Topic: | Price Guide | |
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| In Price Guide, legoranger00 writes:
| | In Price Guide, 1001bricks writes:
| | | | + a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
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Yes/no - if you round it at 2 decimals it's 1.82€
Hoping it's right
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Can anybody give me an example in American money?
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IDK if you're being sarcastic or not, the numbers are the same. Just replace
the euro symbol with the dollar sign.
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| | | | | | | | | | | | | | | | | Author: | legoranger00 | | Posted: | Oct 25, 2022 22:08 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 28 times | | Topic: | Price Guide | |
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| In Price Guide, macebobo writes:
| | In Price Guide, legoranger00 writes:
| | In Price Guide, 1001bricks writes:
| | | | + a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
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Yes/no - if you round it at 2 decimals it's 1.82€
Hoping it's right
|
Can anybody give me an example in American money?
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IDK if you're being sarcastic or not, the numbers are the same. Just replace
the euro symbol with the dollar sign.
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I’m not being sarcastic, I thought there’s a value difference between these 2
currencies.
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| | | | | | | | | | | | | | | | | | | Author: | peregrinator | | Posted: | Oct 25, 2022 23:18 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 29 times | | Topic: | Price Guide | |
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| In Price Guide, legoranger00 writes:
| | I’m not being sarcastic, I thought there’s a value difference between these 2
currencies.
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There is but it's not important for this hypothetical
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| | | | | | | | | | | | | | | | | | | Author: | 16thlevelbricks | | Posted: | Oct 25, 2022 23:25 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 30 times | | Topic: | Price Guide | |
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| In Price Guide, legoranger00 writes:
| | In Price Guide, macebobo writes:
| | In Price Guide, legoranger00 writes:
| | In Price Guide, 1001bricks writes:
| | | | + a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
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Yes/no - if you round it at 2 decimals it's 1.82€
Hoping it's right
|
Can anybody give me an example in American money?
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IDK if you're being sarcastic or not, the numbers are the same. Just replace
the euro symbol with the dollar sign.
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I’m not being sarcastic, I thought there’s a value difference between these 2
currencies.
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It's all right man. I also was stuck on that until I realized the symbols
didn't quite matter. That's its all just numbers for the sake of the
illustration.
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| | | | | | | | | | | | | | | | | | | | | Author: | SylvainLS | | Posted: | Oct 26, 2022 02:16 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 43 times | | Topic: | Price Guide | |
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| In Price Guide, FergH0va writes:
| | […]
It's all right man. I also was stuck on that until I realized the symbols
didn't quite matter. That's its all just numbers for the sake of the
illustration.
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As I (not) so jusdiciously chose the same simple numbers for prices and quantities,
I put € to show where the prices were. (And € is easier for me to type.)
Better example:
lot 1: 10x parts at $0.01 each
lot 2: 1x part at $0.90
average = ($0.01 + $0.90) ÷ 2lots = $0.455
qty average = ($0.01×10 + $0.90×1) ÷ (10 + 1)parts = $0.091
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| | | | | | | | | | | | | | | Author: | TheBrickGuys | | Posted: | Oct 25, 2022 16:36 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 40 times | | Topic: | Price Guide | |
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| In Price Guide, legoranger00 writes:
| | In Price Guide, 1001bricks writes:
| | | | + a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
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Yes/no - if you round it at 2 decimals it's 1.82€
Hoping it's right
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Can anybody give me an example in American money?
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I feel the the 6 month qty sales average price does not really apply for deciding
how to price our parts. We just go by the average price for the last "6 months
sales" average and it works out good for us and helps make sure we do not price
our parts too low. From there we put our parts on sale according to how many
sales we want to receive - as an example, when we are busy with our main work
of building cabinetry we take all our parts off sale and our orders go way down
but when we are concentrating mostly on our Lego business we will put all our
parts on sale for about 10 to 15 percent off. The closer we come to 15 percent
off means the mores orders we will receive.
This is how we price our stuff but each store is different.
Jim.
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| | | | | | | | | | | | | | | | | Author: | Hal8472 | | Posted: | Oct 26, 2022 06:01 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 111 times | | Topic: | Price Guide | |
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| In Price Guide, TheBrickGuys writes:
| | In Price Guide, legoranger00 writes:
| | In Price Guide, 1001bricks writes:
| | | | + a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
|
Yes/no - if you round it at 2 decimals it's 1.82€
Hoping it's right
|
Can anybody give me an example in American money?
|
I feel the the 6 month qty sales average price does not really apply for deciding
how to price our parts. We just go by the average price for the last "6 months
sales" average and it works out good for us and helps make sure we do not price
our parts too low. From there we put our parts on sale according to how many
sales we want to receive - as an example, when we are busy with our main work
of building cabinetry we take all our parts off sale and our orders go way down
but when we are concentrating mostly on our Lego business we will put all our
parts on sale for about 10 to 15 percent off. The closer we come to 15 percent
off means the mores orders we will receive.
This is how we price our stuff but each store is different.
Jim.
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Jim,
Out of curiosity do you take into account seasonal changes? Christmas seems
to be the busiest which naturally leads to higher average prices. Pricing off
a six month average now captures the slowest months. Or pricing off the six
month average in January skews the results higher.
Your discount price feedback system captures where you are in the market regardless.
Andrew
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| | | | | | | | | | | | | | | Author: | 1001bricks | | Posted: | Oct 25, 2022 17:01 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 45 times | | Topic: | Price Guide | |
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| In Price Guide, legoranger00 writes:
| | In Price Guide, 1001bricks writes:
| | | | + a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
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Yes/no - if you round it at 2 decimals it's 1.82€
Hoping it's right
|
Can anybody give me an example in American money?
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1/1112553 Rai (Yap)
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| | | | | | | | | | | | | | | | | Author: | legoranger00 | | Posted: | Oct 25, 2022 22:15 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 31 times | | Topic: | Price Guide | |
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| In Price Guide, 1001bricks writes:
| | In Price Guide, legoranger00 writes:
| | In Price Guide, 1001bricks writes:
| | | | + a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
|
Yes/no - if you round it at 2 decimals it's 1.82€
Hoping it's right
|
Can anybody give me an example in American money?
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1/1112553 Rai (Yap)
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Is that image suppost to be a joke?
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| | | | | | | | | | | | | | | | | | | Author: | 1001bricks | | Posted: | Oct 25, 2022 22:52 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 27 times | | Topic: | Price Guide | |
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| In Price Guide, legoranger00 writes:
| | In Price Guide, 1001bricks writes:
| | In Price Guide, legoranger00 writes:
| | In Price Guide, 1001bricks writes:
| | | | + a bit of correct mathmatics
qty average = (€10 × 1 + €1 x 10) / (10 + 1) = 20/11 = €1.81
Jan
|
Yes/no - if you round it at 2 decimals it's 1.82€
Hoping it's right
|
Can anybody give me an example in American money?
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1/1112553 Rai (Yap)
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Is that image suppost to be a joke?
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It's another currency.
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| | | | | | | | | | | | | | | | | | | | | Author: | TheCuteGiraffe | | Posted: | Oct 25, 2022 23:08 | | Subject: | Re: Average price vs. quantity average price | | Viewed: | 25 times | | Topic: | Price Guide | |
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