IMPRINT CANADA THE MARKETING AND INFORMATION SOURCE FOR IMPRINTABLE PRODUCTS
A Tristan Communications Ltd. Publication
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Volume 21, Issue 1
Pricing for Sublimation Profits
Trends for 2014
By Jimmy Lamb, Sawgrass Technologies
What to look for this coming year
Pricing is one of the most challenging subjects in the world of sublimation, as there are no real standards to go by. Everyone does it differently and no two shops have the same approach. As such, there is a wide disparity across the industry in terms of what to charge. But that is okay, as long as you are actually making a profit. The sad truth is that too many business owners donâ&#x20AC;&#x2122;t have a scientific approach that takes into account operational and production costs such that appropriate margins can be calculated and applied. For example, in the world of sublimation there is a lot of emphasis placed on ink costs; yet in reality, ink accounts for a very small percentage of overall production costs. It's understandable that when faced with spending several hundred dollars at a time on replacement inks, the costs may seem significant, but it needs to noted that inventory costs are quite different from production costs, as sublimation ink averages $0.01 per square inch. Thus in terms of its affect on actual selling price, itâ&#x20AC;&#x2122;s really insignificant. The reality is that the cost to produce something is based on how many units you can produce in a given time period versus the operational costs assigned to that same period of time plus the cost of the blank substrate. The material cost (not the cost of the blank) is just a percentage of your operational costs. Time is the key, as all of your overhead can be equated into a cost per hour figure which will then assign a portion of your operational costs to every product that is produced. For example, assume you are a full-time sublimation shop (this concepts can be applied to heat transfers and DTG printing) and you have calculated your hourly cost of operation to be $30. If it takes two minutes on average to print and press something, you could theoretically produce 30 items per hour, which works out to $1 each. But that is not realistic. <]JTQUI\QWV ,WV\QV]ML WV 9IOM
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By Adriano Aldini, Imprint Canada
Every new year, brings with it a fresh start, new hope and a general feeling of optimism. As we get set to foray into another new year, we look forward and try to pinpoint some of the trends that will make an impact in our industry over the next 12 months.
BRIGHTEN UP! If you haven't noticed the mass proliferation of bright colours at the retail level, then you may very well need to open you eyes and look around. From apparel to accessories, vibrant shades and tones are being featured in many product categories. These bright colours will continue their foray into the corporate and promotional marketplace throughout the coming year. =ZMVL[ KWV\QV]ML WV 9IOM !
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DONâ&#x20AC;&#x2122;T MISS OUT!!! THE PREMIER INDUSTRY EVENT OF THE YEAR IS BACK!
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WHAT'S INSIDE E42C>A 10B43 4<1A>834AH
Pulse Mircosystem's Alex Papaioannou explains how to simply your digitizing process 6 6;>10; 42>=><82 >DC;>>:
Imprint Canada highlights economic indicators for 2014 in developed and emerging markets 12 B>280; <4380 BCA0C4684B
Friday January 10, 2014 10 am - 5 pm
Author and social media influencer Neil Shaffer breaks down the essential components of social media strategies for organizations of all sizes 16
Saturday January 11, 2014 10 am - 4 pm
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**Registration opens at 9 am each day**
"Embroidery Dinosaur" Fran McAvity breaks down the essentials for quality embroidery 20
3$*( THE POWER OF DECORATION UNLIMITED POSSIBILITIES 30 + Decoration techniques available B44 C74 =4F4BC 8==>E0C8>=B 8= BD??;84B 4@D8?<4=C
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Experience it all online at www.fersten.com