Pricing in the print business requires balancing profitability with competitiveness. Wrong pricing can destroy even the most efficient operation.
Cost Calculation Fundamentals
Key price components:
- Materials: blanks and consumables
- Inks/powders: per unit consumption
- Electricity: equipment power consumption
- Depreciation: equipment wear and tear
- Labor: operator time costs
Pricing Strategies
1. Cost-Plus Pricing
Price = Cost × (1 + Markup%)
Example: cost $7, markup 80%:
Price = $7 × 1.8 = $12.60
2. Value-Based Pricing
Set prices based on customer value perception:
- Corporate merchandise: premium pricing
- Personal gifts: mid-range pricing
- Retail products: competitive pricing
Product-Specific Pricing
DTF T-Shirt Printing
▸ Blank T-shirt
- Cost: $1.80
- Notes: Quality affects final price
▸ DTF film + ink
- Cost: $3.20
- Notes: Depends on design size
▸ Labor + overhead
- Cost: $2.00
- Notes: 15 minutes processing
▸ Total cost
- Cost:$7.00
- Notes: Recommended price: $11-14
Sublimation Mugs
- Cost: $3.20-4.50
- Recommended price: $6-8
- Profit margin: 75-100%
Common Pricing Mistakes
Mistake #1: Racing to the bottom on price Mistake #2: Forgetting overhead costs Mistake #3: No volume pricing structure
Dynamic Pricing Models
Price adjustments for:
- Rush orders: +50-100% premium
- Volume discounts: up to 30% off
- Seasonal demand: +20% peak periods
Profitability Monitoring
Key metrics to track:
- Gross margin: 60-80%
- Average order value: $12-20
- Quote-to-order conversion: 20-40%
Successful pricing requires continuous market analysis and strategic adjustments based on costs, competition, and customer value perception.