New Manager to In-Plant Print Shop...help with quotiing jobs

[gordo]

Is your shop rent-free?

Best, gordo

[CBSprinter]

yes, i work for a company and the buildings are paid for.

[MailGuru]

Gordo - Actually, it's in there. Take a closer look at the "Laser Run Charge". Our machines will run an 8.5 x 11 1-side at 80 pages per minute. That means that the labor time will be a little over 2 hours for the 1-up, a little over 1 hour for the 2-up. Even at a fully-burdened labor cost of $25/hr. Thats only $50 for the 1-up scenario and $25 for the 2-up scenario. I'm charging $200 in both cases. Also, remember, this is "raw", without markup, which, in our case can run anywhere between 20% (trade, for other printers) to as high as 150% (off-the-street retail)

[MailGuru]

...., but your color number seems a little low to me. ....

Observation:

Philosophical point: "Numbers" in, and of themselves have no meaning, without a purpose. They are only relevant when compared to other numbers. In other words, "what was the out-going manager trying to convey with his pricing"?

As you can see, from my calculations, the pricing that the retired manager was using is very low, in fact, I would go so far as to say it is "extremely low". However, that may have been his intent. Unlike a normal "business for profit" print shop, the justification for the existence of an in-plant is to show it's stake-holders that it is less expensive to have your job printed in-house, otherwise, there is no reason to have an in-plant.