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IT Strategies surveyed wide format print converters and buyers in the United States to measure the output selling price of wide format print output. They interviewed sellers and buyers of products produced on low-end, high-end, flatbed and roll-to-roll printers and all ink chemicals (UV, solvents, eco-solvents, and latex) to understand current retail product prices.
In the third quarter of 2012, IT Strategies conducted a survey of wide-format print converters and buyers in the United States to measure the output selling price of wide-format printouts. We excluded billboard output and ultra-large format display graphics, which have highly variable driving factors within the region. We interviewed more than 25-bit converters and buyers to cover the range of wide-format output products. Each resource represents a different view on the selling price of wide-format output. We interviewed sellers and buyers of products produced on low-end, high-end, flatbed and roll-to-roll printers and all ink chemicals (UV, solvents, eco-solvents, and latex) to understand current retail product prices. Respondents responded that retail product prices ranged from US$0.38 to US$6.00 per square foot, depending on the substrate and many other variables. However, the most common response is almost always "it depends." We know that there are many factors that affect the pricing of digital print output. This is not as simple as "printing cost plus X% markup" equals "X dollars per square foot". Of course, the cost of the printer will be considered when quoting the sales price, but there are different cost models in the equipment category and ink chemical composition. For example, newer equipment is generally more efficient than old hardware, so work spends less time on printing, thereby reducing costs, and therefore selling prices are more competitive. Another example: the purchase of two converters of the same printer model may have very different rental and/or ink costs, which will affect their costs and thus the sales price. How does the price converter determine the selling price of the printed output? Many converters use the "Hourly News Rate" as the starting point for quoting and selling prices. This rate includes all costs for the printer to run for one hour-including hardware, ink, labor, rent, electricity, etc. The converter can input all these individual cost equations into the MIS software program, and then automatically generate a quotation based on the cost. The parameters of each job and the cost allocated per hour. Many processors do not use the MIS system, but have customized their own quotation system, or may use an internally developed electronic form, or just calculate the hourly cost in their heads. If all overheads are included and actual costs are correctly allocated, using hourly rates ensures that all costs of the converter are included in the sales price. The hourly cost range is based on the overhead and the value assigned to each component by the converter (for example, do they amortize the hardware over two or five years?). The following is a simple example of how a processor can provide an hourly rate for his printing machine: Assume that the processor has a WF printer worth $200,000 and prints 1 48X70 page every 10 minutes (because the job requires a very high The print quality, which will reduce the speed of printing speed). Possibly-this printer can print 6 sheets of paper per hour. Without the cost of ink and substrate, the hourly rate of the printer is $152.00 (see the table below). In this example, it will cost $152. (Excluding ink/substrate) to produce 6,48x70 (equivalent to 23.2 square feet) paper or US$25.00 per sheet or US$1.07 per square foot. Remember, this is the cost of the converter-but the selling price is established based on this principle.
Example of how the converter calculates the hourly news rate
The processor can determine how long the job will be "printed" and then calculate the hourly rate, plus the cost of the substrate, pre-press, shipping costs, and any other "value added" services (this is a big variable that we will discuss later) ) And then add profit to make a quote. Many converters treat the detailed information used to create the hourly rate as a secret because it is an expression of their expertise, not just arithmetic. Quoting the selling price is a science, but there are also "relationship" factors. The price may be adjusted due to the relationship that the converter has or is trying to establish with the customer. Processors may offer lower quotations to customers who purchase large amounts of printed matter each year, or if the processor tries to win a new job, or this WF job will allow the processor to obtain other printed matter (such as postcards, mails, leaflets, etc.). Of course, in most cases, the print buyer does not know or care about which hardware is used to print the job, as long as it meets his/her standards and deadlines. The processor may need to move the printing position of the job to another printing press to meet the delivery deadline. Generally, for printing presses that produce comparable jobs, the hourly printing rate is deliberately constructed so that there is no significant difference in order to achieve this "load balancing." So, what is the current selling price for wide-format printouts? It depends on the situation! The converter can use the "per square foot" calculation to determine the selling price, but the square foot rate is variable and determined by many factors. Respondents said that the primary factor affecting the price of large-format printing is the choice of substrate, followed by ink coverage/document size/single-sided or double-sided printing, and then value-added services.
The main factors affecting the sales price of wide-format printed matter
Converters also consider other factors when pricing wide-format printouts. List of secondary (value-added) factors that may increase retail output prices:
Accordingly, the following is a list of secondary (value-added) factors that may reduce the price of retail output:
As the number of orders increases, some processors may offer a slightly lower price per piece to attract larger orders from customers. However, many processors do not think that quantity is the main factor in determining the price of wide-format digital printing, because their printing costs will not decrease as the quantity increases. Processors can obtain discounts by purchasing large quantities of specific substrates, and the discounts can be passed on to customers to save large quantities.
Processors may offer discounts based on the total square footage purchased for larger jobs or multiple contracts, especially if their equipment has higher production capacity.
Marco Boer, Vice President of IT Strategies, is recognized as a trusted advisor in the digital printing industry. He is known for being able to put complex information and concepts in a context that is easy for the audience to understand. Mr. Boer has more than 25 years of experience in consulting and guiding senior executives of Fortune 1000 and small innovative companies on successful business solutions in the emerging digital printing market, and has a deep understanding of inkjet printing technology and its applications .
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