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

[CBSprinter]

Hello everyone. I'm semi-new to managing a In-Plant print shop and I would like a little help with quoting jobs for my fellow employees(customers). What is the simple exact equation needed? I have the price per click and can figure price per sheet of paper. I greatly appreciate it!!!!

Excel spreadsheet would be sweet. TIA

 

[smo]

Well its your cost per click+paper+time+overheads. You know most of those and they need to be factoring in the time (manpower cost) and overheads such as buildings/electricity etc.

 

[Craig]

Look at Morning Flight - works like a champ and best of all there is a FREE addition.

Morning Flight: Print Estimating Software for Offset/Copy/Digital

 

[CBSprinter]

How can I figure "run time"?

 

[Joe Duffy]

How can I figure "run time"?

Impressions Per Hour/60=Impressions per minute
Impressions needed/Impressions per minute = run time required

does not include plate time, make ready or clean up.

 

[CBSprinter]

So if my KM C7000 runs 70 copies/prints per minute that would give me 4200/70 ? Correct?

 

[Craig]

LOL... don't go by the sales brochure. Many pieces of equipment slow down production as the weight of paper increases. You need to do your own time studies to get this information. BTW don't forget about how long it takes to impose and rip the job too.

 

[MailGuru]

Also, most "page per minute" stats are assuming you are running an 8 1/2 x 11 sheet size with a standard "copier paper" substrate (about 24# bond). One side only.

If you are running 8 1/2 x 14, or 11 x 17, or 12 x 18 or thicker stock, best to compute your own speed stats for estimating

 

[CathieH]

Actually, I'm only replying because I find this interesting.

I thought most in-house copy centers were really cost centers, and the center pays for the paper to keep in stock and only charges a certain amount per click to each department, or whatever code is given to the center. I didn't know one ran like a real print shop. Interesting.

 

[CBSprinter]

Actually, I'm only replying because I find this interesting.

I thought most in-house copy centers were really cost centers, and the center pays for the paper to keep in stock and only charges a certain amount per click to each department, or whatever code is given to the center. I didn't know one ran like a real print shop. Interesting.

Sir you are correct, but certain Depts. will ask for a "job quote" to compare prices that are given to them from outside print centers. This is why I would like a quick spreadsheet to plug in numbers and have a quick quote for departments. Currently I have a simple quote sheet left from previous manager, whom retired, just saying $.02 per side b/w, $.06 per color side.

 

[MailGuru]

Currently I have a simple quote sheet left from previous manager, whom retired, just saying $.02 per side b/w, $.06 per color side.

I'd check with your acctg dept before you use those numbers. Request a copy of the actual monthly invoice from KM. Your B & W number seems ok, but your color number seems a little low to me. Also, unless you negotiated your click charges as "fixed" over the life of your service contract, they increase an average of 12 to 15% per year. If the previous manager retired, you could be working with out-of-date figures...........

 

[CBSprinter]

I'd check with your acctg dept before you use those numbers. Request a copy of the actual monthly invoice from KM. Your B & W number seems ok, but your color number seems a little low to me. Also, unless you negotiated your click charges as "fixed" over the life of your service contract, they increase an average of 12 to 15% per year. If the previous manager retired, you could be working with out-of-date figures...........

our click charges are Oce b/w .0065
KM C7000 .01 b/W .05 color.

When I quote a dept. a certain job I use these figures (passed down from previous manager last year):

Doube price for 2-sided
B/W job (OCE)
8.5 x 11 20# = $.02
11 x 17 20# = .03
8.5 x 11 90# = .03
8.5 x 14 90# = .035
11 x 17 90# = .06

Color
8.5 x 11 20# = .06
8.5 x 11 28# = .075
8.5 x 11 90# = .09
11 x 17 20# = .10

THOUGHTS?

 

[CathieH]

We have a KM C6501 color digital press that we leased last year and own a KM 1050 black only digital press.

On the C6501, we charge $.06 for each color impression (up from $.04 for the previous old machine we replaced) and $.02 for black only impression on both presses. I got them to up the black only on the color machine to $.04. We don't charge for larger sheets, but I plan on tackling that after our busy time in October.

Our click charges are static and fixed.

Just checking...you have a service contract, right? And for the record, I'm a madam, not a sir.

 

[MailGuru]

Looks strange to me. Unless you are running a Xerox iGen, "click" charges typically do not increase in relation to the size, or the weight of the paper.

Could he possibly be intermingling the click charge with an internal "run" charge to cover the employee cost? An 11 x 17 will take longer to print (i.e. more employee labor time) than an 8 1/2 x 11. But your "click" charge should stay constant per impression or sheet.

This is how digital printers gain economies of scale based on splitting the click charge by printing "multiple-up" on larger sized paper. For instance. Instead of running a one-sided 8.5 x 11 color at your $0.06 click. You run 2-up on 11 x 17, then cut to 8.5 x 11. Now, you have reduced your $0.06 click charge to $0.03 per 8.5 x 11.

 

[CathieH]

Mailguru, excellent point and well taken. Perhaps that's why I haven't talked to anyone about a different price for a different page size - I was waiting for someone to tell me it was ridiculous. After all, it's ultimately up to me what size paper I print anything on. I suppose it all comes out in the wash.

Thanks for the eye-opener. I think I'll let this one ride.

Perhaps he's trying to make up the difference in paper cost?

 

[CBSprinter]

I'm guessing he added the cost of the paper in with quote.

I do have service contract. I never called you sir, madam.

 

[CathieH]

Not to pick nits, here, but please see post #10. You quoted me then started your thread with the word "Sir". I thought you were speaking to me.

 

[MailGuru]

I'm guessing he added the cost of the paper in with quote.

I guess that's possible, but, unless he was buying paper retail from the corner convienience store, the difference in 8.5 x 11 to 11 x 17 of the same bond, is only about twice the cost. Not the $0.04 spread he has going from the 8.5 x 11 ($0.06) to 11 x 17 ($0.10). Even so, if that is indeed what he was doing, more the reason to not just use a pre-set pricing sheet of numbers as, paper prices change quite frequently (for us, sometimes even monthly) due to raw material supply and demand, milling issues, etc.)

 

[CBSprinter]

Our paper cost is a fixed number. I know I don't have to quote often, but when I do I want to be consistent and very accurate. I appreciate all the help people and starting to get confused.

 

[MailGuru]

Ok, here is my actual (raw cost - without a profit markup) estimating numbers for an 8.5 x 11 4-color 1-sided for done two ways (1 as a 1-up 8.5 x 11 and then as a 2-up on 11 x 17)

10,000 1-up 8 1/2 x 11: (My color machines are Xerox 8002)
Paper - 8.5 x 11 60# White Smooth Offset - 10,000 sheets at $0.00909/sheet = $90.90
Graphic Arts - Laser Setup $75.00/hr - 1-hr
Color Click Charge ($0.075) (my actual click chrg is $0.05698, but, you need to account for sales tax, service fees, and the machine payment) = $750
Laser Run Charge $0.02/side per sheet (10,000 sheets) = $200.00
Total = $1,115.90 (about 11.2-cents each)

10,000 2-up 11 x 17: (My color machines are Xerox 8002)
Paper - 11 x 17 60# White Smooth Offset - 5,000 sheets at $0.01866/sheet = $93.30
Graphic Arts - Laser Setup $75.00/hr - 1-hr
Color Click Charge (5,000 sheets) ($0.075) (my actual click chrg is $0.05698, but, you need to account for sales tax, service fees, and the machine payment) = $375
Laser Run Charge $0.04/side per sheet (5,000 sheets) = $200.00
Cut (bust-cust) to 8.5 x 11 at $0.005/sheet (5,000 sheets) = $25
Total = $768.30 (about $0.077/ech)