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Supplier Cost Drivers – Print Example. Typical cost breakdown shows that the supplier’s main cost driver is paper. Recommendations. Profit element, amalgamated into % mark up on the print element of the price. Profit 10%. Agree on common national specifications
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Supplier Cost Drivers – Print Example Typical cost breakdown shows that the supplier’s main cost driver is paper Recommendations Profit element, amalgamated into % mark up on the print element of the price Profit 10% • Agree on common national specifications • Reduce the format of prints to use less paper • Reduce the weight (from 80 grs to 75 grs for example) • Don’t use branded paper with watermarks • Don’t use colour paper • Buy the paper straight from a paper merchant • Combine print paper with paper for office printers • Administration • 20% • Head-office • Accounts • Invoicing • Admin • Transport Printers’ operating costs Various cost elements 20% Plate production, Ink, Labour set up, Labour printing, Labour folding, Labour finishing, Packing-box and label, Depreciation, Stock, Distribution Paper 50% Paper accounts for around 50% of the total cost. By reviewing the specifications and negotiate wider deals on paper, the organisation could reduce their print costs
