starting small print shop. need advice

buckeyewta

Well-known member
I am a graphic designer and have been outsourcing all my print jobs so far. I am thinking about getting equipment to handle most of the projects in house. I mostly do business cards, brochures and small booklets. I am considering leasing a Xerox Docucolor 242 for $209 a month plus $.06 per page for the service agreement which includes complete servicing and all supplies. Finishing will be done offline with a used saddle stitcher and a 400 page manual paper cutter. Anybody have any advice?
 
My simple advice is from a production point of view:
1: Make sure the 242 can deliver the same quality or better that your customers are used to.
2: Check the sheet to sheet registration carefully, and make sure your cutting is accurate. Manual cutters can be a real pain.
3: Get an extra blade for the cutter and find a good source for sharpening. You will want to have the sharpest blade possible at all times.

There's a ton more to consider, and I'm sure the forum will offer their advice freely.
Good luck in your new endeavor!
 
Yes, seriously think your purchases through! I was in your shoes a few short years ago (2007). Almost same deal, except I purchased an offset shop that was in decline as the owner was looking to retire and shut the doors.

(1) Make sure the used equipment is not going to cost you more than what its worth to keep it running. I learned this the hard way, as most of the equipment here was extremely used and maintained by the former owner. In my experience this means the only fixes made where when something broke. Don't buy equipment that cannot be put directly into production and justify itself.

(2) You'll find that you need more equipment than what you have. For example a damn good folding machine (can't stress this enough, you want good equipment) don't go cheap, if its too good to be true... it probably is.

(3) Make some friends in the industry, other print shops, larger operations etc. I'm not for sure where you at but make sure they are not going to try to steal your customers if you take them a job! I had several friends in the industry and it helps out tremendously when they are slow I kick them jobs mark it up and etc. Also make sure you know a good offset printer, simply some jobs cannot be reproduced on a copier for quality and price.

(4) This one got me, make sure you figure up your real over head, especially with that copier! You need to figure your lease, the clicks, electric, insurance, your time, a profit and like it or not maintenance (I know its in your contract, but your going to have to replace it eventually and some parts are not covered under contracts). Plus don't be surprised when that $200-400 a month turns into $2000 a month.

(5) Do not give stuff a way. Donations are great but your starting up, make them a deal thats reasonable and try for the job, if it doesn't pay don't take it.

(6) Make certain your capable of doing the job, and don't bite off more than you can chew.

(7) Don't get burnt out. Make sure to take some time off and relax, it will help take. Owning your own business and especially printing should be fun, make sure you enjoy what you do.

(8) haha, don't do it for the money. If you think your going to make a fortune, keep in mind that it takes A LOT OF WORK, so money is proportional and don't get disgusted when the bills seem like they keep pouring in.

(9) Find some good vendors for the big stuff and business cards, trade printers are great and it will keep your prices competitive.

(10) Last one for now, pay attention to all of your licenses etc. for where your working at. Make sure your current and try to stay active in your local chambers etc. some of them are expensive but it is usually worth it.

Best of luck, a make sure your family comes first no matter what, D
 
Startingsmallprintshop,need advice

Startingsmallprintshop,need advice

My simple advice is from a production point of view:
1: Make sure the 242 can deliver the same quality or better that your customers are used to.
2: Check the sheet to sheet registration carefully, and make sure your cutting is accurate. Manual cutters can be a real pain.
3: Get an extra blade for the cutter and find a good source for sharpening. You will want to have the sharpest blade possible at all times.

There's a ton more to consider, and I'm sure the forum will offer their advice freely.
Good luck in your new endeavor!

Please continue to outsource.
 
Side note on the family deal: You will find that you'll need their help, either financially or physically, so keep them close and make time for them too.
Get some references for your copier company, make sure they are dependable and can get their fast for fixes.
A final note and I'm done, try to start a rainy day fund for the business and one for your personal expenses and keep ALL receipts.
Again good luck, if you need to feel free to pm me. D
 
Why?

Why?

I am a graphic designer and have been outsourcing all my print jobs so far. I am thinking about getting equipment to handle most of the projects in house. I mostly do business cards, brochures and small booklets. I am considering leasing a Xerox Docucolor 242 for $209 a month plus $.06 per page for the service agreement which includes complete servicing and all supplies. Finishing will be done offline with a used saddle stitcher and a 400 page manual paper cutter. Anybody have any advice?

Why? I think it's a question you should seriously consider and thoughtfully answer before going forward. What am I trying to control? Expenses? Frustrations (with turnaround times)?
If you think you're not reaping more of a profit when outsourcing, maybe you should look at how you're marking up your price. If your source is not meeting your deadlines, maybe you should find several more sources that can.

Signing a contract with Xerox will commit you to the cost of the lease every month (regardless if you make money or not) and if you don't mark up your click charges adequately it won't cover the total cost of the paper you print on.

There are hundreds of reliably equipped printers/vendors out there that can print and finish the jobs you create through your craft; FIND THEM and use them and save yourself the headache and heartache of not only creating the job, but then having to actually labor and produce the job!

You can make the money without buying 1 piece of equipment!
 
I don't know what the market is like over in the USA but it is slooow in the UK. I set up about a year ago after 6 years working for the top print company in the UK and am glad that I took the option of buying a DC250 secondhand outright and keeping it at home as if I were paying to rent it and space to put it in it would be a real struggle. This way the machine only costs me when I am running it so it isn't a worry.

I love the flexibility of quoting instantly for short run jobs whereas before I lost most of them on price and the speed I could quote clients whilst waiting for my supplier to get back to me. If you have a steady stream of clients you are doing stuff for already then I guess it is worth the risk of having that money going out every month but I'd weigh up very carefully how much is going to be coming in vs going out and remember that you will need quite a float to buy the necessary paper stock. Buying stock in as a smaller business when you only need small reams of things can be hard too as most suppliers here slap big delivery charges on so it is best to buy in bulk which isn't always easy when you don't have bulk or repeat orders coming in.

I bought an old guillotine for finishing which is fine for my needs. I have found with booklets it is often more cost effective to outsource to my online litho printer due to the fact that there are so many options available such as lamination on the covers which is difficult without the right equipment. If the 242 is like the 250 then it will be great for basic business cards and leaflets but the more discerning client may demand better quality so it really depends who your main client base is.

Anyway, let us know how you get on and if you decide to go for it then good luck! Will be interested to hear how it goes for someone in a similar position to me!

P.S. Agree with the above comment that if you do end up leasing to make sure your engineer is decent by talking to other local shops who are covered by same service contract; I actually found my machine through the Xerox engineer from my old place and he services it for me (or talks me through how to do it myself if it is a simple fix). Your engineer will be your best friend! Or worst enemy!
 
Last edited:
I am a graphic designer and have been outsourcing all my print jobs so far. I am thinking about getting equipment to handle most of the projects in house. I mostly do business cards, brochures and small booklets. I am considering leasing a Xerox Docucolor 242 for $209 a month plus $.06 per page for the service agreement which includes complete servicing and all supplies. Finishing will be done offline with a used saddle stitcher and a 400 page manual paper cutter. Anybody have any advice?

Sorry, I replied to the wrong colume as this is the first time I join the forum.
Please continue to outsource and you won't regret it.
 
Hi buckeyewta,

Your mind is probably set on purchasing the equipment but take into consideration that the items you listed can be purchased from an online printer such as 4 over for a lot less than you can produce it. Most of us who own shops with equipment most likely have considered brokering and ditching the presses. There is constant production problems and machinery breakdowns to consider. Also, you still will have to buy out numerous jobs for the simple fact that you one machine can't print every job. In fact with many different machines in our shop, we still find that we cannot print everything in house. The only real benefit to having the Xerox in house is the fast turnaround (if the machine is not down that day). Good Luck.
 
That's a great deal on a 242

That's a great deal on a 242

I am a graphic designer and have been outsourcing all my print jobs so far. I am thinking about getting equipment to handle most of the projects in house. I mostly do business cards, brochures and small booklets. I am considering leasing a Xerox Docucolor 242 for $209 a month plus $.06 per page for the service agreement which includes complete servicing and all supplies. Finishing will be done offline with a used saddle stitcher and a 400 page manual paper cutter. Anybody have any advice?

I just upgraded from a 242 to the 700i. I was paying a little over $700 a month + .075 a click. It's a good quality printer. Some jobs looked better off the 242 than they do off my 700i. You will also need a folder. Baum makes a good table top machine.
 
I hate to be negative but, don't do it!

You will quickly find out that printing is a very tough business.

But if you are absolutely sure you want to go through with it, it's all about the equipment! Good equipment will save the day and bad equipment will drain your bank account.

Also you'll find out that customers can be a real pain sometimes and things like color and quality can be very subjective and some customers just want stuff for free. Just be very careful!

I would stick to outsourcing.
 
I would not do it myself if the brokering is working but if you have the desire to "run the show" then nothing will stop you. I would ask myself why I want to own the shop. If you are having problems with getting finished product from your Vendors here is something to think about that will give you a taste of what it will be like to own a shop.

Continue to Broker the work and get some Finishing equipment. Most Printers can get the work printed but the bottleneck is in the Finishing. I have never seen anyone consider doing something like this and here may be the reason why. Most Printers give away the bindery cost center in their estimates to get the printing. Some on here will disagree but I own a Bindery and I have a pretty clear view of that side of the Industry and that is how it seems to be. But you may can make it work. But if you just want the whole show best of luck. You won't like my advice.

Good luck,
JW
 
I've worked in two shops that used 242's and they are bang-up pieces of equipment - infinitely better than the 560 that Xerox made to replace them.

The 242 will print on anything from onionskin to wood, although your registration won't be the greatest. Your prints will have somewhat of a glossy finish to them (you can't get "matte" no matter how bad you want it - look to Canon for that). Color is good, etc.

It sounds like you're probably not doing a million of anything and your customers probably are not super picky (ie they are not going to whip out a pantone booklet right in front of you), so I think it's a great idea. I do plenty of freelance design and have considered the same thing, with one difference - I know about printing. I've been around it my whole life.

You're involved in one set of PITA's being a designer and working with clients, but you'll learn quickly there's a whole world of PITA's you have yet to experience with print. Your skills as a designer will be tested - what do you know about color spaces, gamuts, etc? Do you make your artwork with bleed? All those insignificant things they taught you in design school will become extremely significant. Pardon my french, but there's just a shitload of stuff you'll have to learn before you are acceptable at print; don't expect to start printing things for your clients the second the machine walks in the door. Also, make sure you have some money to burn on things like paper and test prints until you get stuff down.

Feel free to msg me with questions, etc.. I think you'll expand your capabilities as a designer 1000% with the things you are about to learn :)
 
I am a graphic designer and have been outsourcing all my print jobs so far. I am thinking about getting equipment to handle most of the projects in house. I mostly do business cards, brochures and small booklets. I am considering leasing a Xerox Docucolor 242 for $209 a month plus $.06 per page for the service agreement which includes complete servicing and all supplies. Finishing will be done offline with a used saddle stitcher and a 400 page manual paper cutter. Anybody have any advice?

Make sure that you have your all-inclusive costs figured out. Supplies and materials are easy to quantify, but you'll also need to determine what impact the cost of the machine, rent, taxes, labour, etc. will have on each job. Once you have that figured out, add in the cost of direct supplies and you'll have a good idea what each job will cost you. Compare your costs to the market selling prices and then determine if there is sufficient margin for you to make a profit. If not, it's time to re-evaluate your choice, and continuing to outsource may be the best option for you.
 
If I were you, I would probably stick with the design work and outsource it. For now anyway. I still think it too easy to get over one's head with this shakey economy.

But don't let my caution deter you. You have a better feel for your situation than I do.

The biggest thing I have seen with my experience within printing. Don't buy/lease equipment to create a market. Limit yourself to what you spend and borrow. Meaning don't by that 6 color press if your only producing 1-color/2-color work. Buy and lease to fit your needs. I have seen too many company's spend more money to reach into a market that wasn't there just end up with too much overhead and not enough sales to cover cost.......then bankrupt.

Best of Luck if you do decide to proceed.
 
Another thing is to make sure you can get paper. The paper companies are getting strict on minimum orders and are not real receptive for opening new accounts
 
I am a graphic designer and have been outsourcing all my print jobs so far. ... Anybody have any advice?

I have been in this business as an owner for 24 years. My advice would be to continue to outsource for a couple of reasons. #1. You will likely make more money. #2. It will allow you to continue doing what you truly enjoy (presumably graphic design). Years ago, my wife and I attended a class on printing estimating. When the respective attendees that were in the business were sharing their profit margins one was "off-the-charts" high. On further examination, that individual was a broker; the rest of us were shop owners. I'm not saying you can't make money in this business. We make a very decent living doing what we do. However, it doesn't come without significant risk and hard work (read BIG bucks for equipment and others to do your bidding--they call this management). Our industry has never been more challenged than it has been over the past several years. I would partner with a couple of local printers you can trust, stay focused on your core mission, and sleep better! ;-)
 
Oh yes, didn't think about the hands on knowledge aspect; have you had experience working in a print shop or similar environment? If not then I would really think you are throwing yourself in at the deep end as going from pure design to design for print and print production are two very different kettles of fish. I was lucky that the place I worked in previously also had a digital side so I learnt to set up for litho and digital along with the finishing side of things. In my experience bolt on finishers for small print machines don't cut the mustard and getting to grips with stand alone equipment and getting the quality required can be time consuming and hard. I make more money on design than I do on print - the print money is an added bonus but hour/rate is much better with design.
 

PressWise

A 30-day Fix for Managed Chaos

As any print professional knows, printing can be managed chaos. Software that solves multiple problems and provides measurable and monetizable value has a direct impact on the bottom-line.

“We reduced order entry costs by about 40%.” Significant savings in a shop that turns about 500 jobs a month.


Learn how…….

   
Back
Top