Master Manufacturer: 7 Tips for Analyzing Printing Prices
[(33.5 x 22.75) x (2 x 40 )] / (25 x 38) =
(762.125 x 80) / 950 =
60,970 / 950
Result: 64.18# per thousand cutoffs
If the printer’s contractual pounds are 69.96#, that’s 5.78 pounds more than the required cutoffs, or 9 percent running waste.
By the way, makereadies are also useful to study as the number of thousand cutoffs they represent. With this same example, a makeready of 385 pounds is equal to 6,000 cutoffs (385 ÷ 64.18 per M).
With these seven calculations, you can get a clear idea of not only how, but why one printer’s bid differs from another’s.
And there’s a great tiebreaker, in case grand totals are especially close: The printer with the lower paper waste, in running or makeready or both, is almost always the better deal, as paper prices can rise many times during a printing contract, while manufacturing costs would be constrained by an escalation provision.
Even if you don’t have bids to compare, try running these calculations on your existing price list to get a better understanding of what makes your print prices tick.
Alex Brown is a consultant to magazine publishers specializing in manufacturing and magazine management. She founded her consulting company, Printmark, in 1984, and is a frequent speaker at industry events.