Controlling your REAL printing costs!

Do you know what your print costs are? 

When you’re standing in the Supermarket checkout queue, do you know roughly what you are about to spend? Unless you have bought something quite exceptional or the prices were recently changed, I bet you do!

But do you know what your print costs for a given period? You might know what you have paid your printer, but we can all agree that there are additional costs associated with your printing.   

Let's start by stating the obvious. Planning your printing is like putting together a jigsaw puzzle. To work out the total cost, you need to understand the different components that make up the cost.   

Start by working out your Process Costs

First, there are obvious costs that relate directly to the job specification. These are your process costs. The quantity, size, pagination, material choice, print process, and print finishing all factor into the price the printer has quoted. Process costs are highly dependent on your specifications and will change if and when any of the components change. Different print businesses will quote different prices based on their capabilities and pricing policies.  

Tally up your Operational Costs

Secondly, there are the business’s internal operational costs. These are different for every company, but they broadly cover activities such as raising requisitions, approving purchases, sourcing suitable service providers, and supervising purchases. Once the printing is received, it also needs to be put into storage and distribution for use. Operational costs also include accounting activities.

Now, assess your Strategic Costs

Strategic costs are those associated with the ‘need to print’. What purpose will the print serve? Depending on the print's use, it has its own product development cycle and specifications.

Operational print, such as stationery and manuals follow a simple product life cycle. In contrast, promotional printing (brochures, exhibition materials, magazines, etc.) often follow a complex, multi-layered development and specification cycle.

Who gets involved, and at what stage of the production cycle? These are often complex and challenging decisions.

When starting a new print development project, there is a strong case for involving different people across different roles. The earlier they get involved, the better the results. This ensures that the end product is bang on, and has the approval of all concerned. Needless to say, the decision of who to involve can be rather political!  

Product development costs can be quite high. These are difficult, though not impossible, to measure.

Most businesses treat these significant budget items as sunk costs that are very rarely associated with print. These are the truly 'hidden' costs related to print buying, as they get reported in other areas of the business.

Now that you know your print costs, where can you cut them?

I accept that most businesses concentrate on controlling process costs, but in reality, it’s hard to create significant savings in these categories. The current market forces have been quite aggressive for manufacturers, and so prices can only be reduced by compromising on quality or specifications.

In contrast, you can cut your operational costs quite dramatically to help reduce print-related expenses. You need to undertake a fresh and independent examination of your print-buying processes. You need to do a thorough assessment of how you can simplify your operations and reduce your touchpoints. The benefits of this assessment start to accumulate quickly.  

As can be seen above, choosing and buying print is all about choices. Where there are choices to be made, mistakes do happen, and they cost us money.  By reducing errors and effectively managing the entire print buying process, 

you can start to see a return on investment sooner than ever before.

I can help you assess your print costs, and I’d love to hear about your print-related challenges. Simply hit reply to this message, or call me at 07595021301 for a conversation about how you can save money on printing.