DC 6060 profitability

[kristianeyman]

Hello all!

I would like to call upon the wisdom of you all. I just started a small scale printing business in mexico and trying to figure out my niche here. I have a heidlber qmdi, dc 6060, dc 12 (2), and a heidleberg windmill, and various other small machine for finishing. My question to the board is if my cost per impression is .07, what should be my lowest cost to the public? I am trying to be VERY competitive in my market, where most tabloide impressions are selling for .60-.65. thanks for any and all feedback, kristian.

 

[Printease]

Hi Kristian,

Here in the U.S.- Midwest, we had our tabloid digital output selling for .60 on the high end, and down to .40 when the impressions went over 5000. This seemed to work well, but it is also a different market than you are in. It looks like you have a nice mix of equipment to start out with. In fact, a company I was working at 2 years ago had a 6060 and a QMDI. It gave us some flexibility, and we were able to charge a bit of a premium for the option of quick-turn work being done on the 6060 vs. the QMDI. Good luck- you seem to be off to a nice start!

 

[kristianeyman]

printease,

thanks for your relpy! most of our business is walk up, and we do have a fair amount of people that ask for 100-300 impressions. But to be honest most customers are 5-25 impressions. I am just trying to find out what I can sell for and be hail a LOT of customers! I would think at .40 i can still make profit? thanks, kristian.

 

[Printease]

Yes, that is the age-old question because overhead and operating costs are different for every company. If your competion is at .60, you may not need to drop all the way down to .40 right off the bat- so don't give it away if you don't have too! If you think it would benefit you to keep the prices low in order to get people in the door, it may be worth it if you can build your volume high enough while keeping your burdened labor rates in check during the process.

 

[Netrunner9]

Try and find new business and not discount your current one. Some thing like sending Businesses in your area a Special pricing for Large Drop off work.

 

[kristianeyman]

printease,

so if i was to do 1000 impressions in bond my cost should be .10 per sheet? correct?

 

[Craig]

Make sure you are figuring in your overhead as well, your cost may be .10 with clicks and paper, but you need to make sure you cover all the other stuff and have a little in your pocket as well.

 

[kristianeyman]

Craig,

thanks for the reply! over head is VERY cheap here in mexico, so that is the reason for the question. If my cost for 8000 impression a month is $800 (.10x8000) and my output is 8000 impressions $4000.00. this seems to leave enough room for my case to include rent, employees, light, phone and internet and still make a profit. dont take me the wrong way, i am not trying to be sarcastic or flaunt just want some verification to my way of thinking. thanks again, kristian.

 

[kristianeyman]

would 45% markup be too much to ask for on cost per impression + paper?