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Label Costing Opinions – advice needed please?
Hi
Need forum advice please as I have no point of reference, so looking for advise on costing this project.A local company has asked me to quote on producing labels as their current supplier wants to up their prices, they have told me what they are already paying, but not told me what their new prices are.
The labels are all based on a universal template, with variable data used to fill out the details, for each product line, they have been printed and cut on block out vinyl, but have now asked for a high-tac material, hence the price increase from their current supplier etc. They order a large amount as they have a very wide product range and this would be a continual order.
One label kind is 150 x 150mm and at the moment they pay 18 pence each and are supplied in sheets of 56.
So I have calculated that 56 labels would use 1.504 sqm of vinyl
This would be sold at £10.08 or £6.72 per sqm based on 18 pence per label.I have three material options in mind for this, but based on the mid range price, my vinyl and ink costs would be:
£4.55, leaving a profit of £5.53 per 56 labels, which doesn’t factor in any time etc.If I apply this to a 50m role, we would get 2557 labels from a role which would be sold at £460.00
Material and ink cost would be £208.00 which equals a profit of £252.00 per roll.My personal thoughts are that the machine time, wear and tear to the machine (we only have the one printer) and time we may need to put into this is not really worth the profit available on this project at the sqm rate of £6.72 they have been paying and want to continue paying. I think this rate is low.
So opinions please if this is a reasonable return or not for this type of work
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6 Replies
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Firstly I’m terrible at pricing my own work always too nice and screwing myself over in the process. Trying to be strong. As you ask the question even for me I think it should be at least £12 square meter. I agree the efforts the blade wear the screw ups etc. Not worth it.
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Sub it out to a flexographic label printer 😉
Just not the one who they were using.
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Passed on it, decided not enough in it for the effort needed, I am alway honest, told potential client that they are already paying way under the going rate and a 4p increase again is still way under, so stay where they are.
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Do not under value your product and service. Do not try to win work based on price alone…
I don’t tend to share my pricing on UKSB openly like this, but I would say your pricing and mine, are miles apart.
Your prices are lower than Trade Suppliers who are geared up for this sort of thing. Do not be a busy fool… there are some jobs you have to walk away from.best of luck mate.
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The reason why I’ve never gone after that sort of work. People think of labels as something that cost next to nothing.
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Labels can cost very little, we supply over 100,000 labels to one customer on a regular basis, we simply cannot compete with the speed, and finished quality & price of a commercial label printer.
Trouble we found was sourcing a supplier who would entertain short runs of a few thousand…
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