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Printing Industry Exchange (printindustry.com) is pleased to have Steven Waxman writing and managing the Printing Industry Blog. As a printing consultant, Steven teaches corporations how to save money buying printing, brokers printing services, and teaches prepress techniques. Steven has been in the printing industry for thirty-three years working as a writer, editor, print buyer, photographer, graphic designer, art director, and production manager.

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Book Printing: Giving the Printer More and More Book Titles to Estimate

As a commercial printing broker, I am in the position of potentially crafting a deal that would make a client happy while bringing more work to a good printer. What’s interesting is that there are a lot of assumptions that may be negotiable, if the client, the printer, and I go slowly and work together.

The Client

My client produces books at a local beach resort. For the most part they advertise local establishments, but they also promote events and include other editorial content. The print books are 4-color throughout due to the high percentage of advertising. They are case-bound, for the most part, usually oblong in format, and their print runs range from 1,000 copies to 10,000 copies.

Over the past two months my client has been on hiatus before starting the new publishing year. Usually she prints in China, but she has intimated that for the right price she would consider bringing the work to a local US vendor. I have written about her in the PIE Blog before. Our work has been on hold for two months.

The Printer

At the same time, I have been working with a US printer to craft a potential year-long schedule for my client’s print books and to reduce costs where possible to make the deal attractive to my client. This particular printer is ideal for the job because he specializes in book printing. Therefore, his plant includes all of the equipment most other companies do not have. This includes binding equipment for case-bound books, Smyth sewing equipment, and so forth. Because of this, he can produce my client’s work at a lower price and more quickly than his competitors. After all, he doesn’t need to subcontract the binding work.

That said, he still can only come closer than most US printers to the pricing offered by Chinese print vendors. He can’t duplicate the low pricing in the Far East. However, my client has expressed interest in repatriating the work, avoiding the schedule slow-down around Chinese New Year in February, extending advertising deadlines (since overall production and delivery will take less time here than if the books are produced in the Far East), and avoiding potential dock strikes and the need to reroute ships to other ports. The list goes on. She pays a price for the discount offered by the Chinese vendor, even if he does do stellar work.

The Pot Gets Bigger

Since my last blog article on this subject, my client has taken on more work (more book titles) and is in the process of merging with another print book publisher. What this means is that over the course of the year, my client will have more jobs to print either in China or here in the United States.

My client is concerned that the book printer I have paired her with (due to his pricing, equipment, core competencies, etc.) will not be interested enough to come down in price, since her work in some cases will not go to press exactly when planned (i.e., the jobs cannot always be ganged). We had initially discussed pricing based on ganged work. This particular printer had actually come down in price as more books were added to the pot, but we had still based a lot of the discussion on the assumption that groups of books would go to press simultaneously. Apparently, some of the authors have not been able to meet their deadlines precisely, so this may be an issue. My client was worried that this would be a deal breaker.

This is what I said. Book printers want work. If we are up front about the potential for late job submission, or even the potential omission of a certain number of print books from the planned schedule, perhaps the printer will still offer superior pricing, since we keep adding books to the list. Printers want work, I said, and this amount of work provides leverage as long as we’re candid about the potential pitfalls.

Next Steps

Needless to say, my client was pleased with the answer. We also decided to slow down the process. Not a problem, I said. It’s better to do it right rather than quickly and risk making mistakes.

So what I suggested was that she make a calendar of book titles going from the present through 2018. She has work up through next year already planned (which our printer of choice will love to hear, since it will involve more print book titles than we had discussed at our last meeting). In fact, when I called the book printer after discussing the work with my client, he was pleased and ready to take the information upline to decision makers in sales management and estimating.

I asked my client to include in her calendar the titles of the books, their formats (their sizes and whether they will be upright or oblong), press runs, page counts, delivery dates, and color usage. I said she should set forth general assumptions at this point (educated guesses), assuming that things will change as we get closer to the actual jobs. My goal is to get a schedule into the book printer’s hands, a rough blueprint of upcoming work.

I also asked my client to start thinking about her target pricing, not unit costs but the overall cost per book printing job, excluding ganged shipping (since, if the jobs come in at different times, she will not be ganging delivery from either a Chinese printer or a US printer). I asked her to base these target prices on what she currently pays for work in China. I also asked her to consider the prices she would accept (i.e., if the US prices are higher than those from China, what will it be worth to her to avoid the importing headaches, potential dock strikes, long schedule, etc., plus whatever advertising revenue she can expect to gain by keeping advertising deadlines open longer).

Once I have this chart, even if it is a “back-of-the-envelope” estimate, I will go back to the book printer and see what I can get for my client. If the printer wants a lot of work, he may very well be willing to reduce his profit per title in order to acquire many more book titles. Conversely, his pricing may just be within my client’s comfort zone if he can come close to her targets. I fully expect to have some back and forth discussions to bring both my client’s and the printer’s goals and expectations in line with one another. At least this is my hope. It would benefit both my client and the book printer.

What You Can Learn from This Case Study

Here are some things to think about:

  1. If you have multiple titles, or even a year-long schedule of dissimilar work (books, brochures, posters, office materials), consider sharing this with your printers. Many will be able to give you a better deal based on bringing in more work. If the jobs can come in together and be gang printed, so much the better.
  2. Don’t be afraid to ask for better prices. If you really like a printer and have a good working relationship, you can always ask about ways to reduce costs (such as paper substitution).
  3. In many cases, if you work out a one-year contract, or a multi-year contract, with a printer, you can get better pricing. After all, your printer wants consistent work. If you will be a loyal customer and bring in predictable work over a certain time period, this will be valuable to your printer.
  4. If you’re trying to negotiate a multi-job, multi-year contract, be very candid about which jobs may miss their schedule by a week or more and which may disappear altogether. After all, you’re working with your printer as a partner at this point, and that requires mutual trust and transparency. Both sides have to win for it to be a long-term relationship.
  5. Keep in mind that everything is negotiable, but be as explicit as possible. Show the printer samples of everything. Avoid any surprises.

2 Responses to “Book Printing: Giving the Printer More and More Book Titles to Estimate”

  1. preethi says:

    Thanks for sharing your experience with us as we have learnt so many things

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