Setting the right price for screen-printing jobs is crucial for the success of any apparel decorator. Determining the right balance between covering costs, ensuring profitability and offering competitive pricing requires balancing various factors. While every shop has operating costs, those can differ depending on your locale. For instance, prevailing wages and rent for someone in St. Louis, MI, differs greatly from a shop in Los Angeles.

Setting pricing in screen-printing shops can be a balancing act. (Courtesy of Taylor Landesman)

Consider these key tips when putting together a pricing structure:

1. Understand & Calculate All Costs: Shop owners should account for material, labor, overhead, equipment depreciation and waste/spoilage when pricing jobs. This ensures that all expenses are covered and profitability is maintained.
2. Conduct Time & Cost Studies: Performing time studies for each production step and analyzing average costs helps in accurately estimating labor and operational expenses, which are essential for setting realistic prices.
3. Include a Buffer for Waste & Errors: Mistakes and spoilage are inevitable in screen printing. Including a margin in pricing to cover these losses helps protect profit margins.
4. Analyze the Market & Competitors: Understanding competitor pricing and market positioning allows shop owners to strategically set their prices – whether aiming to be a low-cost provider or focusing on premium services.

Read the full guide on Apparelist, a publication of PRINTING United Alliance, ASI’s strategic content partner.

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