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Pricing and profits

<x-charset iso-8859-1>    Hi all, I am a printing company owner and am trying to get a handle on
pricing and profits for my ink jet outputs. We use a Epson 3000  with
PressReady (latest updates) and am wondering how some of you charge for
outputs. We charge $15 for 11x17 and $30 for 17x22, and 40 for 17x35. We
drop the price $5- 10 for multi prints.
    This does not include design time which is billed from $60-75 a hour or
more. Something I have not seen here is a discussions of profits and sales.
It is a standard in the quick printing industry that sales of $75,000 a
year, per full time employee is the bare min to generate a profit and cover
overhead. The ave is $85m per and you can make a 10-20% profit (owners
salary) on sales of that. The  Basic hour rate guide  from
www.quickconsultant.com shows you must charge $30- $40 just to make a profit
of $10 a hour. This is with no equipment, add $10m in equipment and you need
to add $6 a hour  just to cover deprecation. So a few questions for you all
to answer or think about.

    What sales goals  do you have?

    How much profit do you feel need to make $30m -$ 40M - $50m or more?

    Do you feel you can make this a full time business and generate profits
to cover health, retirement and build wealth?

    I am not trying to start a fight about the personal values on profits,
but I have seen a majority of designers under pricing their work. Some think
what ever they get paid is profit, then 2 years down the road they need a
new computer, scanner, printer and software and have no cash to do it. All
the time feeling they made all this money.

    PS. Low prices and volume do not equal  profits.

John M. Henry
Mitchell Printing Company
127 East 1st
Oswego, NY 13126
315-343-3577 Fax


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