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Sub-contract pricing

Postby cfoley1112 » Sun Apr 27, 2008 2:42 pm

I'm going to be taking over the screen printing shop from my current bosses, and they will be sub-contracting all of their screen printing work out to me. (They own an embroidery business as well.)

I'm just unsure as how to go about figuring out what my sub pricing should be.

I'm just wondering if there is any rule of thumb for this kind of stuff. I'd appreciate any advice you guys might have, if only to point me in the right direction.
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Re: Sub-contract pricing

Postby ROADSIDE » Sun Apr 27, 2008 8:00 pm

well... since you are taking over for them... You should be aware what they charge the customers.
You are not really a sub contractor.... you are just a screen printers and they would be a print broker.
Are they giving you any clue about the amount of work they are giving you?
Is it a time contract?
Are you only doing work for them?

You need to know what your overhead is. Along with your operating costs...such as labor. You do need to get paid, right?

Dont let them con you into working for free.
There is a reason they are getting out of printing.... and I am sure its more then just their embroidery business.

Just my thoughts
.... I can give you my opinion but I can't tell you if it's right or not.
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Re: Sub-contract pricing

Postby cfoley1112 » Sun Apr 27, 2008 11:35 pm

They tell me that I would be doing all of their screen printing, (I'm the only printer at this company. It's a small family run business), so I would basically be doing the same amount of work that I normally do now. I would of course take on my own customers as well, but I could definitely use the steady work that my bosses would give me through subs, at least starting out.

I do know a couple of people who I would be getting regular work from, same situation, just on a smaller scale.

I'm a bit unsteady on my feet when it comes to the business side of screen printing, but I'm having the toughest time figuring out what to charge them. I'm wary of charging too much and sending them looking for another printer, but like you say, I need to get paid too.

I have a pretty good idea of what my overhead will be, as far as rent, supplies, and utility costs. I guess I'm just having trouble figuring out if I will be making enough off of these jobs. As my prices are now, I would be charging them roughly half of what I would charge for a customer off of the street. (I'm not counting the cost of garments here, just printing.)

As far as what they charge their customers, they are a bit vague, but I could probably get a clearer picture if I made a big deal about it. I wasn't really sure it was any of my business.

Sorry to babble on about all of this, I just have the going-into-business jitters, I think.

By the way, what is a time contract?
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Re: Sub-contract pricing

Postby ROADSIDE » Mon Apr 28, 2008 8:15 am

sometimes I type to fast and dont make sense.....


By time contract... I ment how long are you locked into the price you are getting. 1 year? With rising oil prices chemicals, inks and even shirts are going to cost more and more over then next few months.
.... I can give you my opinion but I can't tell you if it's right or not.
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Re: Sub-contract pricing

Postby cfoley1112 » Mon Apr 28, 2008 3:39 pm

Well, it's pretty informal. I've been printing for them for eleven years, so we're on pretty good terms. There's no contract or anything that says I need to keep my prices the same, so if and when my cost go up, I'm free to raise my prices.

Of course, they're also free to find a cheaper screen printer.
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