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  • Article on how printers charge...

    cheers, DJ
    Support my prepress blog by shopping at my prepress store

  • #2
    Re: Article on how printers charge...

    Hi Dj, it's an interesting topic. Most printers are charging by market competition and are not so much using formulas of actual costing. It's surprising how many printers do not have a grasp on their true costs of operation and manufacturing for each job. Of course these are largely the ones who have gone under over last few years. My company has PSI and every single job is estimated, budgeted, and cost accounted as produced and upon close. We review customer jobs in groups by customer, salesman, department, type, etc to be sure all are making money.

    We just bought a multi-million dollar local printer that went out of business. These guys had a large operation and had no clue what their real costs were. It was a recipe for failure that ran its painful course. Their pricing caused great problems in the market as they ran an operation with no clue of proper management on pricing and cost.
    Prepress & Digital Printing Mgr.
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    • #3
      Re: Article on how printers charge...

      Yup, I agree with you. Most printers charge what the market bears and then if they are not making any money, see what they do to cut costs internally.

      But they usually don't have any idea what areas of business are profitable, and where they are losing business.

      Here at Printcraft, they have pretty much spent all this year trying to get a handle on which jobs give good margin and what jobs don't. Next year we will be running marketing campaigns using Adwords to exploit the profitable niches.

      I'm pretty excited about this. Printing as a commodity is to die slowly. But find a niche (and there are more than a few in this business) and there you go, new Mac workstations for everybody in the shop....
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