Author: Jamie Xuereb

In this article we break down wide format printing costs to give you a peak behind the scenes. You’ll be able to better understand exactly where gains can be made. Plus, you’ll have a better idea of the difference between trade printing and in-house production.

Wide Format Printing Equipment Cost & Capacity

First and foremost is the actual cost of the large format equipment to be used. The capital expenditure of these assets is factored into the cost of each sheet. When calculating this, organisations need to also consider the capacity of the selected printer. At Mediapoint, we have invested in large format printers that can handle more volume, to bring down the cost per sheet and produce more jobs per hour. In tandem with our streamlined batching processes we can feed more volume through the line in less operational time. That means we can pass on greater savings to our trade clients and give them greater margin for reselling.

For the clients we cater to best (high volume resellers) this is the optimal process, however there will inevitably be some tradeoffs. We’ve covered those in another article that outlines how to evaluate a trade printer and make sure they match your needs.

Ink Plays a Key Part in Large Format Printing

Fundamentally you need ink to print – there is no way around this commodity. An ink cost per square meter is factored into the cost of any printing run. When dealing with large format prints this can be a significant cost – particularly if the equipment being used is not efficient in its ink usage. You’ll find that entry level or cheaper equipment will be less effective in its use of inks. So you may still end up with a quality print, but the ink costs per square meter are much higher.

We run premium Durst printers on a single printing mode. These are optimised for a set quality of print in all batches. This allows us to sustain efficient ink usage even at the high volume our clients expect, whilst sustaining the level of print quality their own customers expect.

Floor Space Required for Wide Format Printers

Large printers need a lot of floor space. From handling stock, to a working and dispatch area; each piece of equipment needs a significant amount of real estate. At Mediapoint we have over 2000sqm of internal warehouse space. This enables our teams work safely and efficiently when handling print jobs. Plus, it future-proofs our expansion plans.

This is an oft-overlooked aspect of wide format printing, and a major reason why scaling production / capacity is hard for your average print shop. Once the capacity of existing equipment is reached, not only do you need to outlay capital for equipment but also rental of extra floor space or sometimes even an entirely new premises. That expenditure usually leads to increase in print pricing which can affect relationships with customers and significantly impact your bottom line.

Finishing

Another overlooked aspect of wide format printing is the added finishing equipment and processes required. Finishing has a linked impact on quality and delivery of print runs. Sometimes, the cost of good finishing equipment can cost more than the actual print equipment. Then we must consider the cost of staff, training, and the time needed to finish orders. Once again, this all contributes to the final pricing of print jobs. Any process optimisations or capital savings mean less costs overall and greater margins to play with. In printing, economies of scale are very real – which is why trying to justify completing high-volume, repetitive work in-house can be difficult.

Quality Assurance and Dispatch

Unlike other forms of print, like the name suggests, large format printing is large. Due to the materials and equipment involved the print process differs from smaller-scale operation. That means it is necessary to conduct QA work prior to dispatch. It also requires customised packaging and delivery option which ties up a lot of resources as well.

As you can see, there are many factors at play when it comes to the pricing of commercial printing. Due to this the quoting process can often take quite a while, delaying projects or blowing out lead times. That’s why we’ve invested in our PrintIQ system – offering 24/7 live pricing and automated print processing.

If you’re a print resellers looking to provide accurate quotes, manage customer expectations, and get on with the business of selling, create an account today.

In the video above (and the accompanying article) we discuss how you can increase profits by engaging a trade printer.

Increase Profits by Offering More Products to Your Existing Customers

It’s highly likely the bulk of your revenue comes from existing customers, who already buying from you. You’ve built up a relationship with them and you’re likely to be their go-to supplier. But there’s a finite amount of products and stock you can hold / offer without taking up costly space. Not to mention the compatibility of these materials with your existing equipment.

That’s where an established, large trade printer comes in handy. By engaging a print partner you can offer their range of products and services as your own to existing customers without having to outlay significant cost for new stock, products or specialised printing equipment. You win by growing your product offerings (whilst minimising spend) and they win by not having to go elsewhere.

It’s a no-risk way to add services and products without the need for more floor space, staff, equipment or administration. Under this model you can just focus on the selling; strengthening relationships with clients as you also add profit, thanks to good margins and increased offerings.

Downsizing By Removing Unprofitable Lines

Eliminate the risk and the burden of unprofitable lines by shifting the responsibility to a trade printer. It’s no secret that staff are getting harder to find in Australia, so when we they are available we need them to be utilised effectively. Plus accessing the latest technology or purchasing new equipment is taking longer than ever thanks to supply chain issues. So keeping up with the right equipment or the right setup to match our competitors, and the demands of a growing customer base, is much harder.

To overcome these challenges (particularly during the peak of COVID) we’ve seen printing companies downsizing, moving to leaner models and focusing only on profitable lines. Some have even made the decision to shift entirely from print manufacturing to print reselling or brokering.

Trade printers make this a viable long-term strategy, allowing print business owners to stress less and move to more profitable models over the last couple years.

Increase Profits by Outsourcing Large Volume Orders

If you’re manufacturing predominantly in-house it’s likely that you have entry-level equipment or assets that suit a lower volume of production. This is fine for artisanal, bespoke or custom jobs, but not beneficial if you’re expecting to grow the volume of your print runs. In this scenario the cost per square metre will be much higher when factoring in ink, stock, labour, capital for equipment and the physical space you need for it all.

Of course, you can charge more (out of necessity / perceived value) but should your quantity of orders or volume grow, you’ll be tying up production capacity on low margin orders. Never forget that time is a commodity; any time your machines are running for one job, they aren’t producing for another. You want to be utilising your own equipment for the orders that make the most profit; outsourcing to a reliable partner enables you to do this without sacrificing quality or speed on key accounts.

Using a trade printer you can produce faster, at a higher volume, without the profit-eating capital outlay.

Which Trade Printers Will Increase Profits

Each trade / wholesale printer will have different offerings when it comes to products, service and pricing.

It’s important to undertake a robust evaluation of your options – whether you’re already in a trade printing partnership or just starting to look into the option. It doesn’t take much to get the answers you need, just a decent investment of focus and time. However, the return on this investment can reap great rewards when it comes to increasing profits. We recently discussed the fundamental questions you should answer in your evaluation when looking to outsource your printing.

Match up with a quality wholesale printer and you’ll be freeing up equipment capacity, labour, time and capital whilst building up the bottom line.

If you’re interested in evaluating Mediapoint services, and joining hundreds of other high volume resellers taking advantage of trade print, sign up to our PrintIQ system today.

We discuss why evaluating a trade printer, whether you’ve already got one or if you’re just starting to explore the trade printing option, can save you administrative headaches and money. Here we discuss the key ways resellers can evaluate their trade printer to make sure they are getting the best deal.

Evaluating a Trade Printer 101: Are they a good match?

The first thing to ask is, of course, ‘is this trade printer right for me?’ And the answer usually depends on two things: your size and your systems.

If you’re only outsourcing a few jobs a month, or relying on a trade printer on an ad-hoc basis it’s highly likely that you’ll want (and need) a trade printer with a solid front end and the ability to service micro-orders without hassle. By that we mean the ability to provide dedicated, bespoke customer service. This could be a service phone line or live chat, support with artwork correction, perhaps even a dedicated account manager. Whilst this may be useful to you, it also means sacrificing margin. You may even want to consider whether outsourcing is right in the first place, or if you’re better off handling these jobs in-house.

If you are a high volume print reseller or print broker you should be looking for a trade printer that matches your size. Look for partners that have Lean processes: automated quoting / ordering capabilities, routine cutoff times, continuous availability of standard or high-demand products. The trade-off for dedicated personal service here is greater margins, quicker turnaround, and less administration. If you (and your team) have the ability to get jobs print-ready, why pay for services you don’t require?

Shipping process should also be a factor in your evaluation. Where the printer is shipping from and how they are shipping can greatly change costs and timelines. The shipping options available from a wholesale printer may vary by the product you are ordering, the volume and your lead-time requirements. 

These are the fundamental tradeoffs that you need to take into account when evaluating a trade printer. In all cases however, pricing will play a major role.

Do You Know The Pricing Model?

As mentioned above, there is a multitude of different trade printing offerings, each with their own specialisation. Even the definition of ‘trade printing’ changes depending on who you ask!

A top tip to get a real sense of where a wholesale printer’s ‘strike zone’ is, is by how pricing changes based on the quantities you are ordering. This combined with any information on lead times can help determine if the wholesale printer is best set up for volume or micro-orders. The longer the lead time the more likely it is that the printer relies on high-volume batch process.

When evaluating a trade printer you need to decide whether these lead times and their pricing work for you, or if you need to shop around. If you’re consistently having to work to meet lead times, or you aren’t benefiting from a discount on the quantity you are ordering – perhaps it’s best to look elsewhere.

The Proof is in the Print Mode

A significant factor in evaluating any printer is the actual printing that they do. You want consistency and so do your clients. There’s nothing worse than under-delivering on your customer’s expectations (particularly if they’ve ordered something similar previously).

This means looking for an organisation that maintains the same print mode to produce consistent quality each and every run. You can get a feel for any deviation by inspecting multiple batches of similar / repeat orders and comparing the items. If you’re noticing abnormalities like banding or a lack of matching colour, there may be reason to believe that different modes have been used.

Finally – don’t be afraid to go ahead and ask the question when enquiring/ Does the printer run only one ‘go-to’ mode when printing? Or does this change depending on the artwork supplied, or even the volume?

At Mediapoint we can answer that, easily. With each piece of equipment our team identify and lock down one mode for our printing to ensure clients get the right balance of speed, quality and consistency when ordering.

Our Definition Of Trade-Only Printing

Trade printing is a service where you outsource your printing to another supplier who then produces the work on your behalf. This leaves you with greater equipment availability for priority, short-run or custom jobs. You can utilise to focus on growing your business and offering bespoke sevices. A quality trade printer (also known as a Wholesale Printer) will deal only with you – not your customer – allowing you to focus on growing relationships and your customer base, without the financial outlay for new equipment.
If you’re looking for a print partner for products such as mesh banners, corrugated plastic boards, stickers and posters, then feel free to register on our pricing page.