Which Price Level Should I Choose? X, Y or Z?
All Crouser Guides use three separate price levels: X for low; Y for middle; and Z for high. In addition, in this Digital Price Guide, there are two methods of calculating the price of second side imaging: market or takeaway (see Second Side Pricing for more details). All values are only a click away at all times so you may mix and match. Specific prices within the Digital Price Guide are the result of market studies. For more details on how the prices were developed, see the report on Methodology.
Using a Cost Approach
All Crouser Guides have three separate price levels: X is for low; Y is for middle; and Z is for high. In addition, in the Digital Price Guide, there are two methods of calculating the price of second side imaging: market or takeaway. All values are only a click away at all times. Specific prices within the guide are the result of market studies. For more details on how the prices were developed, see the section on How Prices Were Developed.
The Cost Approach: Unlike other pricing guides, we disclose the general cost assumptions we make. However, in this specific case of Digital Printing, unlike offset printing, costs are largely irrelevant because the market prices are so high.
In offset printing, prices are much closer to the cost of manufacturing and thus knowing costs and utilizing a cost plus markup approach is required. In the case of Digital Printing, those using a cost plus markup approach find that their prices are severely under what the market value of the product is.
Nonetheless, the typical direct costs for digital printing on digital copiers, digital duplicators and some digital presses reflected in this guide center around a production unit that is leased from a vendor for approximately $1,500 per month and a per meter click charge of up to $0.055 per image (regardless if imaging 8.5x11 or the maximum size which is approximately 12x18 and in some cases 13,x19).
These units are typified by the Konica-Minolta 6500/6501; Canon 600; Xerox 700 and like machines.
The prices in this guide however cannot be assumed to be reflective of digital presses such as the Indigo (HP), iGen (Xerox), Nexpress (Xerox).
We calculate the cost of manufacturing utilizing cost models we have developed and apply base markups which yield an adequate return on investment and effort. This forms a floor under which the retail price should not fall. Then we compare the market value of the same item and allow the suggested price to rise to market assuming market exceeds cost plus.
In no case did we find that the market value of digital printing fell anywhere near the cost plus method of pricing and thus this Digital Price Guide is based on market level pricing.
Nonetheless, the following information regarding costs assumptions which you may match with your actual costs is useful in helping you determine which price level you should be charging.
The following cost assumptions and the discussion about them are not intended to make this guide complex to implement. It is not. As with any other guide, you may use the market or price approach discussed above. However, you do have the additional assurance with our guide to understand the assumptions upon which the guide is based and to assure yourself that you are passing along your costs to your customers should you choose.
![]() Hours Available For Sale: The hours available assumption in the three price levels (X, Y and Z happen to be the same at 40 hours each. Further, the table illustrates key cost indicators to help you with your book selection should you be wishing to use the cost approach. It is known most printers work more than 40 hours per week. By utilizing the 40 hours as a standard in our calculation, the shop only "has" to stay open 40 hours per week in order to pass total costs along to the customers. Should we use 50 hours, then the shop would "have" to stay open 50 hours just in order to pass costs along to the customer. Therefore, the use of 40 hours is a more conservative approach even if we actually work longer hours normally. Holidays Holiday information as well as vacation day indicators for the three books are gained from surveys conducted by Crouser & Associates, Inc. We found higher cost areas will grant a larger number of holidays per year because of competition for employees. No significant variance in vacation time was found among small press printers in any area. The resulting calculations show the typical number of yearly total hours available for sale per employee in the small press shop. Digital Press Operator Base Pay Item 5 in Table 1, press operator base pay is reported as straight time with no fringe benefits. Note: You may or may not pay a specific digital press operator these wages. This is an indicator only of the pay range typically found in this type of shop for a person described as: Digital Press Operator who has been with the shop for two years and has five years total experience. Additionally, the operator is very dependable. Also illustrated are other typical facts about the overhead cost assumptions which help you compare your shop with the models used in our calculations. Square footage for all shops were found by survey data to be similar however cost per square foot on an annual basis was found to vary causing a significant variance in typical rent. Also supplied is information on typical electric and/or gas used per month. This is yet another gauge of overhead costs. You may or may not pay specifically the amounts indicated in this table. This table is only a guide to assist you in determining which cost model is most like your shop. |