What a job actually costs.
WHAT TO INCLUDE
Substrate: paper, vinyl, fabric, board
Ink or toner Machine time, including depreciation
Labour: setup, operation, finishing
Finishing materials: lamination, binding, eyelets
Waste and spoilage Overheads
WHAT PEOPLE OMIT
Setup time Waste sheets during setup Machine depreciation Their own time
WHY SETUP MATTERS MOST ON SHORT RUNS
It is the same whether you print ten or a thousand, and it dominates small jobs.
WHAT THAT IMPLIES
Very short runs must carry a minimum charge.
WHAT TO ESTABLISH
A minimum job value.
WHY
Below it, the job loses money regardless of price per unit.
HOW TO CALCULATE MACHINE COST
Purchase and expected life, plus service contracts and consumables, divided by expected output.
WHY EXPECTED OUTPUT
Machines used lightly are expensive per impression.
WHAT TO MEASURE
Actual output, and revise the figure.
WHAT TO CALCULATE FOR LARGE FORMAT
Cost per square metre, by material.
WHAT TO INCLUDE
Material, ink, waste from cutting, machine and labour.
WHY WASTE FROM CUTTING
Rolls are fixed widths and jobs rarely use them fully.
WHAT TO PLAN
Layout that uses the roll width efficiently.
WHAT TO ADD
Margin, and a spoilage allowance.
WHAT TO REVIEW
Costs whenever material prices move.
WHY
Material prices move frequently and absorbed increases erode margin invisibly.
