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» The Letterville BullBoard » Letterhead/Pinstriper Talk » Markup on outsourcing

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Author Topic: Markup on outsourcing
Graham Parsons
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Greetings!

I realize any pricing discussion has infinite variables, but as a guide: I have a supplier who will direct print to rigid materials (nothing for us to do) and am curious as to what is a reasonable markup to add to my costs? Naturally I don't want to leave money on the table, but at the same time I want to be fair and competitive to my customer.

Any advice/help/comments appreciated...

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Graham Parsons
Signs 'n Such Ltd
Swift Current
Saskatchewan
Canada.
www.signsnsuch.com

"Saskatchewan - hard to pronounce, easy to draw"

Posts: 710 | From: Saskatchewan, Canada | Registered: Oct 1999  |  IP: Logged | Report this post to a Moderator
Glenn Taylor
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Graham,

I think it varies from product to product.

For example, I farm out business cards and mark them up 500%. For wide-format digital prints, I generally mark them up 50-100% depending on the size of the project. I outsource my embroidery and mark it up 100%.

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BlueDog Graphics
Wilson, NC

www.BlueDogUSA.com

Warning: A well designed sign may cause fatigue due to increased business.

Posts: 10690 | From: Wilson, NC, USA | Registered: Nov 1998  |  IP: Logged | Report this post to a Moderator
John Arnott
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50% to 100% here.
Business cards 400%

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John Arnott
El Cajon CA
619 596-9989
signgraphics1@aol.com
http://www.signgraphics1.com

Posts: 1443 | From: El Cajon CA usa | Registered: Dec 1998  |  IP: Logged | Report this post to a Moderator
Checkers
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Member # 63

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Hiya Graham,
If you're working with a true wholesaler, a company that doesn't compete against you in the retail arena, you should be able to make a minimum 40% gross profit on the sale. So, if it costs you $100, you'll sell it for a minimum of $167.
When it comes to any digital printing, I'll mark up the product according to the job though. If it's a small project, I'll mark up 100% (a 50% margin) minimum. So, if something goes wrong, I don't loose money redoing it.
On much larger projects, I'll go as low as 30% profit, but it would be a job worth ~$5k or more in material cost alone and I would be buying a finished or nearly finished product.
I always figure my design, labor and any additional costs seperately from the product.

Havin' fun,

Checkers

--------------------
a.k.a. Brian Born
www.CheckersCustom.com
Harrisburg, Pa
Work Smart, Play Hard

Posts: 3775 | From: Harrisburg, Pa. U.S.A. | Registered: Nov 1998  |  IP: Logged | Report this post to a Moderator
Brian Stoddard
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Member # 39

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I agree with being able to markup at least 30% from a wholesale level (depending on the product)and usually a lot more.

Designers have traditionally charged 15% for sourced services to cover their time (including radio and other advertising)

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Brian Stoddard
Northwest Wholesale Signs

brian@nwsigns.com
www.nwsigns.com

Posts: 790 | From: Redmond, WA | Registered: Nov 1998  |  IP: Logged | Report this post to a Moderator
Richard Heller
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Graham, I always tried as best I could to price it as though I was doing the job myself with the equipment and materials available to me and use that as a guide.

--------------------
Rick Heller
Ohio Technical College
1374 E. 51st Street
Cleveland, OH 44103
IOAFS

Posts: 210 | From: Cleveland, OH | Registered: Nov 2001  |  IP: Logged | Report this post to a Moderator
   

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