Impressions - October 2016 - 54

When crafting
a strategy, place
a premium on
using direct
labor and
machine
capacity as
profitably as
possible.

Many small business owners
directly participate in the
production of goods, but fail to
include their labor as part of
the cost calculation.

with a minimum acceptable gross margin
percentage of 40%.That $3 T-shirt would
be priced at $5, whereas the $38 jacket
would be priced at $63.50.
Again, the profitability scale varies widely
across items, creating an imbalance.While
not mutually exclusive to gross margin,
any percentage-based calculation, such as
markup percentage, presents similar risk.

Minimum Acceptable Profit Per Piece

Use Info*Action #18 at impressionsmag.com/infoaction

P.54

i m p r e s s i o n s m a g . c o m OCT./NOV. 2016

Profit per piece is a pricing philosophy that
establishes a minimum profit amount that
is to be added to the cost of goods sold to
establish a selling price. Businesses using a
profit-per-piece model typically establish
a base rate that can be applied to goods.
This pricing model ensures a decorator
makes a certain minimum profit amount
for each application at the press, effectively
marrying capacity to profitability.With a
$10 profit-per-piece rule, the $3 T-shirt
would cost $10 and the $38 jacket would
cost $48.
Due to both the increased risk and potential profit on tougher-to-print items,
different profit-per-piece rules often are
applied to different product categories.
For instance, performancewear may have
a higher calculation than a cotton T-shirt.
While these are three cost-based
pricing model calculations, it is highly
recommended that a customer-based or
market-price calculation be the second
part of the equation. Once applying costbased pricing logic, consider the price the
item can command. If that price is higher
than that which the cost-based calculation
provides, then increase the selling price.



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Impressions - October 2016

Table of Contents for the Digital Edition of Impressions - October 2016

Impressions - October 2016
Contents
First Impressions
From the Show Director
Overheard
First Look
Scene at ISS
On Design
Still Running Strong
The Growing Demand for Digital
On Tap for 2017
Shop Talk
Embroidery Design & Digitizing
Screen Printing Production
Sublimation
Direct-To-Garment
Heat Printing
Ad Index/Online Directory
Classifieds
Impressions - October 2016 - CT1
Impressions - October 2016 - CT2
Impressions - October 2016 - Impressions - October 2016
Impressions - October 2016 - Cover2
Impressions - October 2016 - 1
Impressions - October 2016 - Contents
Impressions - October 2016 - 3
Impressions - October 2016 - 4
Impressions - October 2016 - 5
Impressions - October 2016 - First Impressions
Impressions - October 2016 - 7
Impressions - October 2016 - From the Show Director
Impressions - October 2016 - 9
Impressions - October 2016 - Overheard
Impressions - October 2016 - 11
Impressions - October 2016 - 12
Impressions - October 2016 - 13
Impressions - October 2016 - 14
Impressions - October 2016 - 15
Impressions - October 2016 - First Look
Impressions - October 2016 - 17
Impressions - October 2016 - 18
Impressions - October 2016 - 19
Impressions - October 2016 - 19a
Impressions - October 2016 - 19b
Impressions - October 2016 - Scene at ISS
Impressions - October 2016 - 21
Impressions - October 2016 - On Design
Impressions - October 2016 - 23
Impressions - October 2016 - Still Running Strong
Impressions - October 2016 - 25
Impressions - October 2016 - 26
Impressions - October 2016 - 27
Impressions - October 2016 - The Growing Demand for Digital
Impressions - October 2016 - 29
Impressions - October 2016 - 30
Impressions - October 2016 - 31
Impressions - October 2016 - On Tap for 2017
Impressions - October 2016 - 33
Impressions - October 2016 - 34
Impressions - October 2016 - 35
Impressions - October 2016 - Shop Talk
Impressions - October 2016 - 37
Impressions - October 2016 - Embroidery Design & Digitizing
Impressions - October 2016 - 39
Impressions - October 2016 - 40
Impressions - October 2016 - 41
Impressions - October 2016 - Screen Printing Production
Impressions - October 2016 - 43
Impressions - October 2016 - 44
Impressions - October 2016 - 45
Impressions - October 2016 - Sublimation
Impressions - October 2016 - 47
Impressions - October 2016 - 48
Impressions - October 2016 - 49
Impressions - October 2016 - Direct-To-Garment
Impressions - October 2016 - Heat Printing
Impressions - October 2016 - 52
Impressions - October 2016 - 53
Impressions - October 2016 - 54
Impressions - October 2016 - 55
Impressions - October 2016 - Ad Index/Online Directory
Impressions - October 2016 - Classifieds
Impressions - October 2016 - 58
Impressions - October 2016 - Cover3
Impressions - October 2016 - Cover4
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https://www.nxtbook.com/nxtbooks/impressions/teamspirit_2016spring
https://www.nxtbook.com/nxtbooks/impressions/201602
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https://www.nxtbook.com/nxtbooks/impressions/sportsfanretailer_201512
https://www.nxtbook.com/nxtbooks/impressions/201512
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https://www.nxtbook.com/nxtbooks/impressions/201509
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