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How do you charge for waste?

RBDesign

New Member
Have a customer that needs 2 -- 71"x48" MDO with full color digital print and laminated. I had to buy 2 -- 96"x48" and cut them down to the size needed. Do you guys charge for the full 96x48 or just the71x48?
 

Gino

Premium Subscriber
Like he said.... by the 1/2 sheet. Anything more is a full sheet cost plus your markup. These 2 cutoffs are what are known as 'GRAVY'. Next job that needs a 2' × 4' or any size under that has already been paid for and you can charge for it, again. Gravy.
 

Christian @ 2CT Media

Active Member
We charge for the full sheet but our math is different.

For the live area we charge 2x cost and for the waster we charge 1.2x cost. The reason being is the printed area is what they ordered but we can never assume that the drop will be used so they need to pay for it plus for us to hold it or trash it.
 

jfiscus

Rap Master
Charge full sheet price, or see if the supplier who sold you the sheets will give you a rebate on the remainder of the unused sheets they sold you. What? They wont?
 

ddarlak

Go Bills!
full sheet plus 40% is what have been doing for 22 years, and they get charged $18.75 for the cut and clean up.

you do this to make money, if you do a good job you make money, if you do a great job you make more money...
 

ams

New Member
Depends on the customer, that close to a full sheet, I would probably do full price. If was like 4' X 4' I would do about 25% less than full price.
 

rjssigns

Active Member
Full price plus markup and cutting charge. Funny thing about the gravy that Gino mentions. I always get the client that needs signs exactly one inch bigger than the drops.:banghead:
 

Gino

Premium Subscriber
Full price plus markup and cutting charge. Funny thing about the gravy that Gino mentions. I always get the client that needs signs exactly one inch bigger than the drops.:banghead:

I have so many cutoffs laying around, it ain't funny. Right now. I'm flatbed printing a 27" x 73" sign from a 32" x 76" drop. The cost for printing is about $3.50. Then I hafta heat bend it and it'll be finished in like 20 minutes all total. Getting $406.00 for the complete job and other than the $3.50 for ink, that's all I have in it, cause the electric is running anyway, along with all the other overhead. The compressor runs basically all day long, so between the other jobs going on..... it amounts to pennies to run this one little job which I have into into.
 

Andy D

Active Member
Like others have said, a 71" x 48" MDO would cost the customer more than a 4' x 8'
due to the extra labor of cutting it down.
 

bob

It's better to have two hands than one glove.
Full sheet + 100%. Everything that comes into this shop gets marked up 100%. Everything.
 

ColorCrest

All around shop helper.
I find it’s important to differentiate scrap from waste because they mean something very different as far as cost accounting. Usable scrap is returned to inventory. Inventory has a particular markup but all inventory does not necessarily have the same markup. Unusable scrap is passed along to the customer as part of their cost. “Waste” is on the company.

So, I can’t charge for “waste” but I have to charge for “unusable scrap” in some way. Commodity material costs are easily known by my customers so that fact affects my markup rate for those materials.
 

Christian @ 2CT Media

Active Member
I find it’s important to differentiate scrap from waste because they mean something very different as far as cost accounting. Usable scrap is returned to inventory. Inventory has a particular markup but all inventory does not necessarily have the same markup. Unusable scrap is passed along to the customer as part of their cost. “Waste” is on the company.

So, I can’t charge for “waste” but I have to charge for “unusable scrap” in some way. Commodity material costs are easily known by my customers so that fact affects my markup rate for those materials.
Why would them knowing the cost of a base material matter 1 iota to your pricing structure?
 

Johnny Best

Active Member
The majority of my customers would not even know that the material came in 48"x96". And the ones that do are smart enough to know I am going to charge them for a full sheet/plus, and the drop, waste, scrap, whatever you want to call it, is mine to do what I want with it.
 

papabud

Lone Wolf
i think there is a clear division between waste and scrap.
i suck at running something so i wasted 500 sheets learning how to run it. so i will bill the customer for those 500 sheets.
vs i had to use x to make y exactly how you wanted it. so your being billed for the x i had to use.
 
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