# What to take into consideration when calculating costs.



## EclipseBlitz96 (Nov 29, 2008)

Hey everyone!

I just wanted to post a general thread about calculating costs for your business. I have noticed that there are a few tips here and there scattered all over this site! So just to help fellow printers everywhere, how about we get a thread going about what costs each one of us use in our calculations!
I will have to say that my cost list wont be 100% complete and accurate. I do not have access to my business based PC right now, but I will update later.

So heres what I use when calculating my operating costs which then allows me to calculate my markup for screen printing.

First off, I found out that my BEST way to determine approximately how much ink/emulsion I use per order is by weight! I weigh my containers before and after each order and then calculate how much material I am using. This technique allows me to determine whether or not my printing technique is becoming more or less productive over time. You can buy a scale at any office supply store for only a few bucks and I have found it to be very effective in calculating my usage per order/print.

All of my chemicals are in measurable spray containers, but sometimes depending on how accurate of the scale you use, weight may be a better way for me to calculate my cost per shirt.

Heres a list of production costs I use to help calculate my pricing,

1. Screen Usage (I divide my usage per screen evenly for quality control purposes and I also use a guestimated amount of usage per screen before remeshing)

2. Degreaser - After many orders, I can now approximate how much of this I use per screen/order

3. Emulsion - I coat my screens on both sides, and by the container weight afterwards I can determine how much it may cost me to coat every screen.

4. Film - Since I don't have an AWESOME printer, I have to print 2 film copies per screen. I refuse to do only one just to save money because quality control is a BIG must for me.

5. Exposure Time - I take into fact that over time my exposure bulbs will go bad. So I factor in my exposure times per screen based against the "suggested" manufacturers bulb life.

6. Screen Tape - Doesnt cost much per screen, but its still a factor to me.

7. INK - Calculated by weight (Approx. $0.02 per print)

8. Paper Towels - By being less messy, I use less paper towels...therefor less costs for me!

9. Test Print - Believe it or not, Test prints could cost you $0.45 ea and you dont even realize it!

10. Misprints - Everyone has them, I calculate at 1%

11. Ink Remover - I learned that if you get as MUCH INK AS HUMANLY POSSIBLE off of your screen first, you dont need to use so much of this not so expensive chemical.

12. Emulsion Remover - Based on how much you dilute it and how patient you are can dramatically decrease cost.

13. Dehazer - Yeah, definitely had to add that one in there

14. MISC - just go through your process and techniques to help you. For example, I dont use blockout very often at all so I didnt use that as a factor.

Now these are just things I think of when determining BASIC costs.

but many people dont factor in utilities (electric, heat, water, etc) , especially with that heating element! If you cant calculate that since your base operation isnt dedicated solely to your business, just start with guestimating those costs by documenting the time spent per job and comming up with a diagram.

I dont factor into my cost any of my equipment prices since they have been paid off for a while, but I do factor in failure preventative maintenance based on %.

Dont forget to time your production output, set up, tear down, clean up, etc. 

It sucks when you get excited about a large order and dont determine if its worth it or not. I learned the hard way by spending too much time on a job, and made $2.56 per hr...

Like I said, this is all I can think of right now but its hard to let you know about everything when Im stuck about 200 miles away from my office.

Please post feedback, and other costs and such. I would greatly appreciate it due to the fact of developing software that integrates with quickbooks, excel, and acrobat pro 9 (interactive PDF files)


----------



## Katie Taylor (Nov 29, 2008)

Most of the things you list can be calculated in your screen set up charges. Anything that it used on the screen should be included in your set up costs to cover it.

Ink costs per shirt is difficult to calculate because you may be printing a 12x12 one day, and 1x1 the next. I understand that you measured the weight per print instead, but there are a lot of variables.

Anywho, it seems like a great list to start with. I however didn't see labor in there which is a huge factor of printing.


----------



## proworlded (Oct 3, 2006)

Don't forget to factor in misprints, competiton pricing, and downtime due to a malfunction.


----------



## fdsales (Jul 1, 2007)

Also labor costs. Don't forget to also add cost of labor add-ons, such as your Fed 7.65% contribution, plus your contribution to state & Fed unemployment taxes. Also what about depreciation on your equipment? Even though it may be paid for, you should figure some amount into your costs in order to have enough profit to purchase new or additional equipment for the future.
All of this cost figuring is great, but if you're not competitive with your surrounding competitors, then you won't get much business unless you can offer a better level of service & quality than your competitors, so it's necessary to know what they are charging also.


----------

