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help understanding how to price projects

artofacks1

artofacks1

New Member
I am trying to understand how to price projects out.

I'm trying to understand the formula to get my cost and what a wholesale cost would be for b2b and also what the retail price for b2c.

Material + amount of colors + laminate or adhesive (if used) + how do you factor the die cutting. A lot of these will have special shape die cuts.

What about the time it takes one to set up, package and ship.

To get the price do I get material, time and multiply by the square footage ?

I'll being doing decals , 1, 2, 3 spot color for the most part.

I am.trying to understand the formula so I can develop an app that will do the math for me and I can produce real live quotes on my website.

Thanks!
 
artofacks1

artofacks1

New Member
First couple pages were good, than it got wild. Lol! A lot of funny guys on this forum.

Good nuggets in that thread though.

Thanks.
 
artofacks1

artofacks1

New Member
Z SIGNS said:
You can charge whatever your work is worth.
Click to expand...

I hear you, I was trying to understand how I fins out what my price to produce things for as well.

100 pairs of Football Decals on Reverse Print convex 5.5 X 7 inch each decal, with k9 clear adhesive printed with metallic silver was the test subject.


need about 15 yards in length x 15" of vinyl and adhesive and about 14 meters of foil used.
vinyl = about $90
adhesive = about $145
foil used = about $61

total cost of material = about $296.00 to produce 100 pairs
cost per decal set = $2.96

What I do not know is how much time it will take me to do the work. However assuming it takes me 3 hours of my time @ $50 and hour that is $150 added to the decal.

That bumps the decal per set price to $4.46 a set.

I haven't marked up the material cost either. I just did the math to find out my cost. So, i added a mark up of 50% to the materials (vinyl, adhesive and foil) that $148 more .

Now the set is $5.94 per set (2.97 per decal)

This 200 decals that are one color metal chrome, decal printed on clear convex vinyl about 16mil thickness. $594 total (haven't included shipping) $296 is what it cost - 298 would have been the profit. I just got some prices off a website. I am sure I can bring my material cost down and with using refills i can bring the foil cost down to.

If my goal is to make 10k profit a month. I would need to get roughly about 34 jobs a month of 100 sets (1 color, 5.5" X 7" decals) If it takes me 3 hours for each project and I get the 34 to meet the goal of 10k a month. It would take 104 hours of month.

What would be better is to get
17 jobs a month that need 200 sets so its 17 clients and not 34. The less clients I deal with and the higher the quantity per client order I get. The less time invested into phone calls, invoicing ect. ect. Its all about getting a total profit of 10k a month. If I can make that off of one big project, well thats how I will roll. Baby steps though, just learning from the pros and documenting my thoughts. I am sure I will come back and read this later and think , what the heck was I thinking when I posted this. LOL!!!


I know its a long and confusing posts. LOL!!! Just crunching some numbers as I like to understand my cost, what I need to do to get to my goals as far as sells to close, hours of production ect. ect.

Anyhow, good night and thanks for reading my posts and replying.
 
Biker Scout

Biker Scout

New Member
You could just take your cost per decal and apply the 2.5 - 3.3 multiplier to it, and just run with it. That gives you a range between $7.40 – $9.77 a set. You can apply those prices based on artwork complexity or speciality foils used.

At that rate you only need 5 to 6 clients per month. More time for fun stuff!
 
artofacks1

artofacks1

New Member
Biker Scout said:
You could just take your cost per decal and apply the 2.5 - 3.3 multiplier to it, and just run with it. That gives you a range between $7.40 – $9.77 a set. You can apply those prices based on artwork complexity or speciality foils used.

At that rate you only need 5 to 6 clients per month. More time for fun stuff!
Click to expand...


Interestingly enough, from the research that I have done. A decal using the specialty foil of metallic silver chrome at this size is priced at about $7 - $9.00 .
 
C

chillGMS

New Member
There are a few software systems available to help the producers of graphic material price projects effectively.

Another benefit to this process, it can will allow the producers direct input into the formulas to price projects specific to the actual materials being produced.
 
James Burke

James Burke

Being a grandpa is more fun than working
If this isn't a hobby, then start at the beginning with an yearly budget. Divide your budget by the total numbers of hours you plan to work each year to come up with an average hourly shop rate. Use that rate to estimate your jobs. If you're relatively new, then add a bit of extra time cushion for your learning curves. Then...and only then....can you begin to factor in the price of materials and other associated costs.

If your prices are too high, you'll at least be able to have a better understanding of where you might need to work on your budget.




JB
 
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