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Categories: Book printing >> Support Center
Mark-up Method When Estimate a Book Printing Job
Origin:Image Printing  Data: 4/3/2011  Keywords: book printing job

The estimate and sales should mark up for a book printing job when the manufacturing costs are finalized. This traditional and simple method is severely criticized but can be used as a ready-reckoner. The unit cost is derived from dividing the quantity of books to be ordered into the total production costs. This is then multiplied by a factor to arrive at the published price.

The accounts department calculates for editors the factors pertaining to different kinds of books with different royalty rates and discounts. Provided the copies sell out, the factor accommodates the costs and profit. But if the published price is thought too high, the editor is tempted to increase the print run to lower the unit cost in order to arrive, by multiplication, at a reasonable price. Conversely, the publisher may print the number it believes it can sell but fixes the price too high to absorb that number. Unless careful the publisher ends up with unsold copies or loss-makers. The method, based on a predetermined level of activity, disregards the fact that costs do not act alike as output increases or decreases. It encourages rigid pricing and conceals assumptions. Worse, it focuses attention on the unit cost and away from the market and price elasticity.

The method can be used in reverse. The gross retail value is divided by the factor to arrive at the desired unit cost. The specification could then be adjusted to match. The use of a mark-up factor often occurs when consumer book printing companies buy books from packagers. A mark-up factor is applied to all-in price per copy to arrive at a published price. If the publisher is translating and resetting a title, the mark-up could be 5 or 6.

There are two methods for markup, fixed amount and percentages. Markup is the difference between the cost of a good or service and its selling price. A markup is added on to the total cost incurred by the producer of a good or service in order to create a profit. The total cost reflects the total amount of both fixed and variable expenses to produce and distribute a product. Markup can be expressed as a fixed amount or as a percentage of the total cost or selling price. Retail markup is commonly calculated as the difference between wholesale price and retail price, as a percentage of wholesale. Other methods are also used.

 
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As a professional book printing factory in China, Image Printing Packaging Ltd focus on book printing and packaging printing mainly for oversea and domestic customers. We are located in Shenzhen city, the book printing and packaging printing industrial center of China and even worldwide. Please be kindly note we offer a wide range of professional customed printing service with aggressive prices
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