5 Things That Affect Your Bottom Line When Working with a Print
-
5 Things That Affect Your Bottom Line When Working with a Print On Demand Business
The lack of initial capital investment is the biggest allure for many people who use Print on demand companies for their business. Unlike traditional printing and branding businesses, there is no initial cost of buying materials or printing machinery. Additionally, apart from time spent setting the graphics and pricing, you take a hand of approach business style when using a Print on demand company.
However, since it’s so easy to contract a print-on-demand business, many people overlook several things that end up affecting their net profit. Below are five things that affect your bottom line when running a print-on-demand business.
Material Used for Products
When production process, a key element that affects the cost of production is the materials used. Ideally, custom print-on-demand clothes and home decors that use polyester will vary greatly from one that uses cotton or velvet. As expected, this is the case when you are printing on plastic, glass, or metal products. As they will require a different production process, it’s safe to assume that they will also vary in cost. For this reason, you cannot price them the same way hence why you should consider the type of material used when pricing.
Customized Product Size
Surprisingly, one aspect that is often overlooked when looking at the production and overall pricing is the sizing. Larger print on demand products will ideally take longer to design and longer to produce will still use a lot more material. Usually, the increase in production cost is attributed to creating a different-sized design nameplate for every newer item. As a result, you should strive to bill the products differently as they will be priced differently by your print-on-demand supplier.
Quantity of Products Ordered
The quantity you order from your global print-on-demand supplier will have a far-reaching effect on how much profit you will get. Normally many suppliers are geared to have a set limit of products requested before they can create products. However, to encourage additional ordering, many companies offer discounts where an increase in the number of products produced leads to decreased production costs. Factor in this when making your orders and know it will affect your net profit in the end.
Use of Color
The production of white and black products is more common as they require a less complex means of production. On the other hand, using color through intriguing and infuses character is more challenging as it requires a delicate balance to achieve good results. Additional production levels are incorporated to bring out the uniqueness of colors, which takes more time and effort. For this reason, black and white products are priced cheaper than the use of colored. Before pricing anything, ensure you run the numbers generated from a print-on-demand service to ensure you can price your products appropriately.
Production Receipt Time Frame
When dealing with print on the demand drop shipper, one key aspect greatly affected the cost of production and carried to production if production time frame. When dealing with printing companies, one needs to give the company at least five business days to get a sample. As expected, it takes at least fifteen business days to fulfill a high-quality product order. If you hurry the production process, note that a rush order normally equates to more money spent to fulfill the order, affecting your overall production and pricing.
As seen above, to enjoy the benefits of Print-on-demand products, you have to take time to jot down what you want. Like other businesses, have a business plan, and a means to execute it. Look at the operational costs and how valuing something you have on sale affects your profit. In all, whether you are using Print on demand with Shopify or another company, ensure you are offering competitive pricing, so you do not sell yourself short at the end of the day.