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Just curious what you guys are netting as far as profit margin on subcontracting orders ranging in sizes, but mostly in larger orders.
Recently, I've been doing alot of subcontracting. To compensate for the difference in cost, I am adjusting my prices. Naturally, margins are lower than if I were directly printing myself. Some rough examples are below of what I'm getting based on qty.
500 and below size job 30% or more
750 piece job 25%
1000 piece job 17%
5000 piece job 16%
So around 750 pieces, my margins are at 25% or less and less than 20% on 1000 or more. This is low but I'm also not having to worry about labor, ink, chems, most other overhead that a normal shop would. At the same time, this model is showing me that my margins are too low for anything over 1000 pieces and that I might as well just stick with jobs at 500 or below simply because my margins are double.
What do you guys think? Just trying to get some insight.
Recently, I've been doing alot of subcontracting. To compensate for the difference in cost, I am adjusting my prices. Naturally, margins are lower than if I were directly printing myself. Some rough examples are below of what I'm getting based on qty.
500 and below size job 30% or more
750 piece job 25%
1000 piece job 17%
5000 piece job 16%
So around 750 pieces, my margins are at 25% or less and less than 20% on 1000 or more. This is low but I'm also not having to worry about labor, ink, chems, most other overhead that a normal shop would. At the same time, this model is showing me that my margins are too low for anything over 1000 pieces and that I might as well just stick with jobs at 500 or below simply because my margins are double.
What do you guys think? Just trying to get some insight.
