Worked scenario
Sheets sold by the piece, cut for free, waste absorbed
Cutting converts a full sheet into a sold piece and an unsold remainder, and pricing that ignores the remainder gives away real material.
3 min read
A customer wants part of a sheet. The distributor cuts it, sells the piece, and keeps whatever is left.
The remainder is rarely sold
Unless offcuts are recorded and findable, they accumulate and are eventually disposed of. The sold piece therefore carried the cost of the whole sheet, and the price did not reflect that.
Measure the yield
Across a month, how much of the material entering the cutting service left as a sale. Distributors who measure it are frequently surprised, and the fix is usually pricing rather than refusing the service.
What changes
- Cutting recorded against the sale with the sheet consumed
- Offcuts recorded with usable dimensions
- Cutting charged or explicitly treated as an inclusion
- Yield per sheet measured across the cutting service
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