The Re-quote Process

[lostmind]

Let me ask you a question...Your pressman and bindery person (the die cutter) have nothing to do. A job comes in that you print every year. A new owner comes in and finds the job under-quoted by their estimation approximately $400. The customer balks at the increase. Would you not take the job at the previous estimate or pay your employees for standing around? You obviously can send your employees home but that makes for an unpleasant situation.

 

[chriscozi]

LOL
Every printer's day in 2023.

 

[tngcas]

I had this situation when I bought my print shop. I took the long view. Made no price changes the first year because that’s every customers fear with new ownership. Then took the price increase and averaged it out over three years and slowly increased the prices every year until they were back inline with normal prices.

Then I continued making twice yearly price increases so customers are always aware that costs go up. Twice yearly cost increases are small and easier for customers to handle and help us keep up with inflation and pay our employees fair wages.

But I’m a small shop that values my employees over immediate profits.

 

[Stephen Marsh]

Is the job still profitable, even at $400 less? Less than what? $400 less than cost? $400 less in profit, i.e. the job is being sold at cost for no profit? Forgetting labour costs for the staff with nothing to do for the moment, there is still the cost of substrate, ink, packing materials etc.

 

[TJPrinter]

If the job is truly underpriced it needs to be adjusted, sometimes it happens. Raising prices too much can send your customers looking for cheaper prices, not raising prices when needed can send employees looking for a new job when the shop closes due to lack of profit.

Back in 2008 the economy hit printing hard and there were plenty of shops that were low balling prices just to keep employees busy. It was bad for the industry but those that saw low prices as the only fix are no longer around.