Financial Analysis: Line One (Memorial Stones)
Flat Catalog, Pearl Aggregate, Cremains-Agnostic
Financial Report | v2 — April 12, 2026
What changed in v2 (read this first)
The v1 model scaled stone size with pet weight (a 100 lb dog → a 35 lb stone) under the "17% volumetric inclusion" rule. That model was inconsistent with the Pearl Method, which produces structurally sound aggregate that decouples size from input volume. v2 replaces that entirely with:
- A four-product flat-priced catalog. Every product is the same size regardless of cremains source.
- Pearls as the structural aggregate (with pea gravel backfill if customer's pearl yield is small).
- A separate intake fee that scales with cremains volume — this is where bigger sources (large dogs, humans) honestly carry their additional processing labor.
- Stream A is cremains-agnostic. Pet OR human cremains. The Pearl Method, recipes, and equipment are identical. Only the intake fee tier varies by volume.
1. THE FLAT CATALOG (locked April 12, 2026)
| Product | Base Price | What's included |
|---|---|---|
| Worry Stone Set (3 stones, expandable to 5 on spillover) | $175 | Set of 3 polished worry stones, microcement finish, memorial cloth, packaging |
| Garden Stone (single, ~6–7" diameter, freeze-thaw rated) | $225 | One outdoor-rated stone, sealed, memorial cloth, packaging |
| Candle Holder Set of 4 (mix of 2 tea-light + 2 taper, embedded metal cups) | $295 | Four matched holders, embedded thermal cups, microcement finish, packaging |
| Cement Memorial Planter (~10" × 10", outdoor, drainage hole) | $395 | Planter, drainage hole, microcement rim, sealed for outdoor, packaging |
Customer total = product price(s) + one intake fee (table below).
Pricing rationale: positioned ~40–60% below Parting Stone direct ($795 cats, $995 dogs, $2,495 human reference) while staying at competitive parity with Parting Stone's partner channel ($295–$345) and well above BigPaw Cremains' Etsy pricing (~$61–$66 per stone, single not set). Flat catalog, no upsell. Locked decision history in project_legacy_soil_pricing.md.
2. INTAKE FEE TIERS (locked April 12, 2026)
The intake fee covers the labor of sieving, granulating, batch handling, and chain-of-custody documentation. It scales with cremains volume because the granulation step takes longer for larger volumes — and Mark's "but it is, but it is" honesty rule says we charge for that.
| Tier | Cremains volume | Typical source | Intake fee |
|---|---|---|---|
| Tiny | < 0.1 lb | Hamster, parakeet, small reptile | $25 |
| Small | 0.1–0.5 lb | Cat, small dog | $40 |
| Medium | 0.5–1.5 lb | Medium dog | $60 |
| Large | 1.5–3 lb | Large dog | $90 |
| XL — Human | 4–7 lb | Human cremains | $150 |
The intake fee is added once per order, regardless of how many products the customer chooses. A customer ordering a planter + a worry stone set for a large dog pays $395 + $175 + $90 = $660.
3. COST OF GOODS SOLD — per product
These are direct production costs per unit. The intake fee covers labor and is treated as a separate line. Cement and aggregate quantities are dramatically lower than v1 because every product is a small, fixed-size cast.
3a. Worry Stone Set (3 stones)
| Item | Unit Cost | Quantity | Extension |
|---|---|---|---|
| White Portland cement | $0.35 / lb | 0.6 lb | $0.21 |
| Fine silica sand (100 mesh) | $0.10 / lb | 0.9 lb | $0.09 |
| Pea gravel / silica fines (backfill, average) | $0.05 / lb | 0.4 lb | $0.02 |
| Sodium silicate (water glass) | $0.20 / oz | 0.5 oz | $0.10 |
| Iron oxide pigment (optional) | $0.30 / oz | 0.2 oz | $0.06 |
| Microcement finishing kit | $150 / 30 sets | 1 set | $5.00 |
| Silicone mold amortization | $50 / 50 casts | 3 casts | $3.00 |
| Total Production Material | $8.48 | ||
| Memorial cloth + cert + seed card | $4.00 | 1 unit | $4.00 |
| Packaging (small box, kraft paper) | $3.50 | 1 unit | $3.50 |
| Shipping (USPS Priority Small Flat Rate) | $9.65 | 1 unit | $9.65 |
| Total Variable Cost (COGS) | $25.63 |
3b. Garden Stone (single, ~3 lbs finished)
| Item | Unit Cost | Quantity | Extension |
|---|---|---|---|
| Portland Type II cement | $0.25 / lb | 0.6 lb | $0.15 |
| Masonry sand | $0.05 / lb | 1.2 lb | $0.06 |
| Pea gravel (backfill) | $0.05 / lb | 1.2 lb | $0.06 |
| Sodium silicate | $0.20 / oz | 0.5 oz | $0.10 |
| Air entrainer (Sika AEA-15) | $0.15 / oz | 0.5 oz | $0.08 |
| Concrete penetrating sealer | $0.40 / oz | 0.5 oz | $0.20 |
| Silicone mold amortization | $80 / 40 casts | 1 cast | $2.00 |
| Total Production Material | $2.65 | ||
| Memorial cloth + cert + seed card | $4.00 | 1 unit | $4.00 |
| Packaging (medium box) | $4.50 | 1 unit | $4.50 |
| Shipping (USPS Priority Medium Flat Rate) | $17.10 | 1 unit | $17.10 |
| Total Variable Cost (COGS) | $28.25 |
3c. Candle Holder Set of 4
| Item | Unit Cost | Quantity | Extension |
|---|---|---|---|
| Portland Type II cement | $0.25 / lb | 1.2 lb | $0.30 |
| Fine sand | $0.10 / lb | 2.4 lb | $0.24 |
| Pea gravel (backfill) | $0.05 / lb | 1.0 lb | $0.05 |
| Sodium silicate | $0.20 / oz | 0.6 oz | $0.12 |
| Silica fume / fly ash | $0.50 / oz | 0.5 oz | $0.25 |
| Embedded metal candle cups (4) | $0.75 each | 4 units | $3.00 |
| Microcement finishing kit | $150 / 30 sets | 1 set | $5.00 |
| Silicone mold amortization | $120 / 40 casts | 4 casts | $12.00 |
| Total Production Material | $20.96 | ||
| Memorial cloth + cert + seed card | $4.00 | 1 unit | $4.00 |
| Packaging (medium box, padding) | $5.50 | 1 unit | $5.50 |
| Shipping (USPS Priority Medium Flat Rate) | $17.10 | 1 unit | $17.10 |
| Total Variable Cost (COGS) | $47.56 |
3d. Cement Memorial Planter (~25 lbs finished)
| Item | Unit Cost | Quantity | Extension |
|---|---|---|---|
| Portland Type II cement | $0.25 / lb | 5.0 lb | $1.25 |
| Masonry sand | $0.05 / lb | 10.0 lb | $0.50 |
| Pea gravel (backfill) | $0.05 / lb | 8.0 lb | $0.40 |
| Sodium silicate | $0.20 / oz | 0.8 oz | $0.16 |
| Air entrainer | $0.15 / oz | 1.0 oz | $0.15 |
| Silica fume | $0.50 / oz | 1.0 oz | $0.50 |
| Concrete penetrating sealer | $0.40 / oz | 2.0 oz | $0.80 |
| Microcement finishing kit (rim only) | $150 / 60 rims | 1 rim | $2.50 |
| Silicone mold amortization | $300 / 30 casts | 1 cast | $10.00 |
| Total Production Material | $16.26 | ||
| Memorial cloth + cert + seed card | $4.00 | 1 unit | $4.00 |
| Packaging (large box, padding) | $9.00 | 1 unit | $9.00 |
| Shipping (UPS Ground, ~30 lbs box) | $24.00 | 1 unit | $24.00 |
| Total Variable Cost (COGS) | $53.26 |
4. MARGIN ANALYSIS — per product
| Product | Base Price | COGS | Gross Profit | Gross Margin |
|---|---|---|---|---|
| Worry Stone Set | $175 | $25.63 | $149.37 | 85.4% |
| Garden Stone | $225 | $28.25 | $196.75 | 87.4% |
| Candle Holder Set of 4 | $295 | $47.56 | $247.44 | 83.9% |
| Cement Memorial Planter | $395 | $53.26 | $341.74 | 86.5% |
| Catalog blended average | ~86% |
Intake fees are nearly all margin because the labor is already covered by Mark's monthly draw — there's no incremental material cost to granulating a few more cups of pearls. The intake fee adds ~$25–$150 of high-margin revenue per order on top of the product margin.
5. THE "MONTHLY NUT" TRIGGER
The Solid plan's monthly fixed nut is $4,430 (land debt service, insurance, utilities — see Business/Financial_Proforma.md).
Breakeven order count (assuming average order = 1 product + 1 intake fee, blended across the catalog):
- Average product gross profit: ~$234
- Average intake fee gross profit (blended across tiers, weighted toward Small/Medium): ~$55
- Average order gross profit: ~$289
- Orders to clear nut: ~16 per month
Drivers:
- Smaller fixed-size casts vs. the v1 weight-tiered model — lower COGS per unit
- Intake fee adds high-margin labor recovery
- Cheaper shipping (most products fit USPS Flat Rate; only the planter still needs UPS Ground)
6. WHAT THIS CHANGES VS. v1
| Metric | v1 | Current (v2) | Delta |
|---|---|---|---|
| Stream A pricing model | 4 weight-based tiers, bundled with cedar planter | Flat catalog $175–$395 + intake fee | Decoupled |
| Standard stone weight | 3.5–35 lbs (scaled with pet) | 1.5–25 lbs (fixed by product) | Smaller, uniform |
| Cement per stone | 2.5 lbs | 0.6 lbs – 5 lbs | Down ~70% on average |
| Pea gravel per stone | 4 lbs primary aggregate | 0.4–8 lbs backfill only | Down ~70% |
| Sodium silicate | Not used | ~$0.10–$0.16 per unit | New line |
| COGS per stone | $47.48 | $25.63 – $53.26 | Down on most products |
| Gross margin per product | 76% | ~83–87% | Up materially |
| Blended catalog margin | 76% | ~86% | +10 pts |
| Cremains source | Pet only | Pet OR human | Wider |
| Breakeven orders/month | ~29 | ~16 | −45% |
| Shipping per stone | $25 (UPS Ground 7 lb) | $9.65 – $24 | Down on most products |
| Average order gross profit | ~$116 | ~$289 | +150% |
7. LOCKED April 12, 2026 — to revisit after first 5 paying orders
The four base prices $175 / $225 / $295 / $395 and five intake fee tiers $25 / $40 / $60 / $90 / $150 will be revisited after the first 5 paying orders confirm actual labor and material costs.
Positioning: sits ~40–60% below Parting Stone direct while maintaining competitive parity with Parting Stone's partner-channel pricing ($295–$345). Preserves the flat-catalog-no-upsell brand rule. Still accessible — a $175 worry stone set is not a premium luxury good, and the planter at $395 is still ~60% below anything comparable Parting Stone offers.
[!IMPORTANT]
Operational efficiency: at ~86% blended margin and ~$289 average order gross profit, the business clears its $4,430 monthly nut at ~16 orders per month. Substantial improvement over v1's 29-stone-per-month threshold. Every additional order above 16/month contributes ~$289 of unrestricted gross profit to the operation.