Awards & Engraving

January '20

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28 • A&E JANUARY 2020 tion printer. We will also err on the high side, as it is good to always make sure you can improve your bottom line, not break even. Then after the formula, I break down each section to give the things to factor and think about. • Blank product (11-ounce mug): $2.15 • Paper and ink cost (desktop): $.78 • Pressing labor (mug press): $.30 • Packaging (shipping/otherwise): $.50 • Additional labor: $.56 • Scrap and spoilage: $.15 • Other costs: $.23 Total Cost of Production = $4.67 Blank Products: Do not forget to add the inbound freight into this figure as that can drastically change the cost of the blank. Buy enough quantity to gain price breaks, but not so much that you won't be able to sell that inventory in the course of six to 12 months. There are costs to carry inventory for extended periods of time, but there are also costs to not buy in bulk. I know people getting mugs for about $.60 each or less, but they buy full containers at a time, so find the right mix for your business. Paper and Ink: The printer you use can make a world of difference in this area, but in general, you are looking at about $.0095 per square inch with a small- format printer plus your paper cost. Going up to a wide-format printer can change the game quickly. In the example above, I estimate your cost would go down to about $.07 for an 11-ounce mug. Pressing Labor: This is where many of us struggle, but I like to calculate this

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