Looking for advice:
We had been requested by a potential client to provide them with our material cost-to-labor ratios. Our experience is that projects with hand assembly generally are 1/3 material to 2/3 labor and straightforward print runs are reversed. We are wondering what industry experience is as the feedback to us is that this is not the customer's experience. Comments?

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Good morning Shelley,
In my experience the old paper x 3 used to be the norm. Not anymore. It really depends on the project and the process. For printing sheetfed we still target 1/3 material and 2/3 labor but that is a constantly moving target depending on run length and any other value added labor you will contribute to the over all price.

Printing on a web may result in 60/40 split of material to labor or lower. Printing digitally might be 25/75 material to labor. As you can see it really does depend on the method of print and run length.

You didn't say what or how you are printing. You also didn't state what your potential customer's normal print method is. If they are used to buying with web pricing then the 1/3 - 2/3 number you mentioned wouldn't seem right to them.

I would counter to them that every project is different and there is no one standard.




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