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price for profit
CALCULATING YOUR COSTS
The foundational tool that we are going to use to construct the price list is something called the Cost per Impression. An impression is simply the unit of work for this industry. If you screen-print a 1 color left chest and a 6 color back that will equal two impressions. We do not use the number of colors in this total, but rest assured the costs associated with that are included along the way. Also, we are not including the cost of the apparel blanks either. We’ll work on that markup idea later. Impressions works for embroidery, sublimation, direct to garment, heat press, and any other decoration method too. It is simply a standardized way at looking at what you are doing. The structure of this book is based on only screen-printing though. One thing at a time. The Cost per Impression average for your shop constantly changes. It is an average, and this will be constructed by measuring data in four main areas for your company. I call these areas “Buckets”. The fifth Bucket is a Profit Bucket . Let’s take a look at each Bucket , and what it takes to measure them. Then, there is a spreadsheet template for you to use to start calculating the Cost Per Impression average for your shop. The 5 Bucket Method for Calculating Costs As I stated, each of these Buckets is a different cost center for your shop. Ideally, you should go back and grab five years worth of data for each, but three years will work. If you haven’t been in business that long, use what you have. If you are a start up business,
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