Envelope Prices

gsbatch

Active member
I did some shopping at competitors for envelope prices. What I found was that prices in my area are all over the map. I don't know why there is such a big gap. So I was wondering what other shops across the US are charging. Standard #10 black ink. 500, 1000, 2500, 5000.
 
I did some shopping at competitors for envelope prices. What I found was that prices in my area are all over the map. I don't know why there is such a big gap. So I was wondering what other shops across the US are charging. Standard #10 black ink. 500, 1000, 2500, 5000.

I'm not sure people on this forum would tell you what they are charging for #10 regular 1/0 black. I know, I wouldn't.

The reason for the large gap in pricing? You should be charging what the market will bear.
 
Gasoline has just about the slimmest margins of any product sold in the US. A significant part of the reason is because purveyors post their prices on giant billboards.
 
In all seriousness, if I do 5 quotes today, for 5 different customers, on the same #10 regular 1/0 black, I'll more than likely give 5 totally different prices.

It depends on the client, whether or not they are trade or end user, what that client is used to paying, what I've charged them in the past, how fast they need it, and, yes, as unfair as it may seem, how deep their pockets are, tempered with how high I feel I can go, and still get the work.

I believe that is called "what the market will bear". And that, my friends, is exactly what the business owner hired me to do.
 
What the market will bear seems to be the constant variable I have trouble hitting. I can give the same price and customer response ranges from not a blink to needing CPR.
 
What the market will bear seems to be the constant variable I have trouble hitting.

I'm totally in agreement with MailGuru when it comes to market pricing versus cost plus, and evidently so are you. Chalk one up for common sense.

We've found national averages for digital easier to come by than for offset, thanks to published surveys. You didn't specify, so here are our two cents for both:

Offset: 500 - $70, 1000 - $100, 2500 - $185, 5000 - $315
Digital: 500 - $85, 1000 - $130, 2500 - $275, 5000 - $470

Our recommended values for digital are between 15 to 20 percentage points below the 2016-2017 QP Pricing Study, depending on quantity. That "blink to needing CPR" thing you mentioned? That's not going to change any time soon. Sorry.
 
Another reason for the large disparity in pricing may have more to do with the internal current production load of the print operation you are requesting pricing from. Sometimes, if they are slammed, and, production is heavy, they may give a higher quote. The thought process there is "if we don't get it, that's ok, we'd have difficulty in figuring out where to squeeze it in anyway. If we do get it, at least we're damn sure going to make good money on it". Conversely, if production is light and they are not busy, they may give a lower price to increase the probability of getting the job to keep the printers running.
 
Sometimes the paper vendor can play a part also. Different brands of envelopes may have different prices, often for no discernible reason other than that "ours is better than theirs."
 
Another reason for the large disparity in pricing may have more to do with the internal current production load of the print operation you are requesting pricing from. Sometimes, if they are slammed, and, production is heavy, they may give a higher quote. The thought process there is "if we don't get it, that's ok, we'd have difficulty in figuring out where to squeeze it in anyway. If we do get it, at least we're damn sure going to make good money on it". Conversely, if production is light and they are not busy, they may give a lower price to increase the probability of getting the job to keep the printers running.

Of course, the opposite can also be true. All print operations have a set (fixed) overhead (rent, electric, phones, equipment leases, etc.). The higher your volume, the less your "per piece" assessment is of those costs. The lower your volume, the higher that per piece cost is. All of these are reasons why prices vary greatly between different vendors.
 

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