By Editor Morten B. Reitoft
To understand 'pricing' is maybe the most critical things operating a printing company. Buying a printing machine isn't something that comes easy. Typically an offset printing machine is depreciated over a 7-10 years period, and you may have more than one device. So how can you calculate accurate prices?
Most printing companies operate with a so-called full-cost model. A full-cost model is a model where some of the cost-base is overhead, including financing, interest, rent, administrative work, etc., combined with the actual variable cost.
All this ends up with a machine price per hour.
Many printing companies using this model then mark up the cost price, to present a sales price. Since not all printing companies have all types of machines at their disposal, some printing companies also operate with "virtual" printers, that mimick the characteristics of other machines.
The full-cost model, however, has its flaws. First, it's a cost model and not a sales-price model. Second, which is extremely important, is to have a quite accurate number for the utilization, so the variables are as correct as possible. You could choose to use CIP3/CIP4 data directly in your MIS/ERP system to enable a correct cost-base, or you can choose to use the calculation base more as a reference to your profitability based on accurate utilization.
However, to do these calculations is essential and in the 'Learn With Us' session Monday, May 25th, 11:00 CET, Kit Tomshøj from EPR/MIS supplier PrintVis will give you an insight into how to calculate.