Finished Mug Costs

[leehyde30]

Hi All,

Just starting to write the business plan for my new venture and working up some P&L accounts so that I need to be aiming at.

With regards to the consumables that go into a mug print, as well as the cost price for the mug itself; what guide would you give me on a target finished mug cost? I appreciate this will differ in terms of a full image wrap compared with a single colour logo/slogan print - however at the minute a ballpark figure do what people are experiencing would be a great guide.

I plan on using SG400 Sawgrass inks, Tex-R paper etc..

I'd likely buy mugs in 300-500 at any one time to ensure a good price break.

Any further information required just give me a shout. Once I have this worked out I can start looking at margins etc...

Regards
Lee


Sent from my iPhone using Tapatalk

[GoonerGary]

I don't budget for ink as it's minimal cost. You can't put a finished cost as this will depend on your choice of mug, budget or premium? The prices are on the suppliers' websites.

[Customprintwales]

Every one will have different costs depending on who they buy from and the quality of the supplies.

Your best option will be to get the calculator out and determine your own costs based on the quality of product you are going to be using and the price you can buy in at.

Excluding mug costs my other direct costs for a standard 11oz mug comes in at just under £1 per mug - this includes electricity (easy to work out now with smart meters), ink, transfer paper, protection paper, presentation box, mailing box, bubble wrap etc.

some items you can work out a definite price on others have to be just an estimate.

There are too many variables involved for any one to give you a figure you can use in your own personal situation.

Kevin

[leehyde30]

I don't budget for ink as it's minimal cost. You can't put a finished cost as this will depend on your choice of mug, budget or premium? The prices are on the suppliers' websites.

Hi Gary,

How do you get away with not budgeting for ink? Looking as a full set of SG400 cartridges, these are around £200. Surely this cost needs accounting for? How many mugs would you expect to be able to print for that cost?

I should have elaborated on the choice of mugs I intend to use. These would be Grade A premium 10/11oz mugs. I intend to sell into retail, corporate business and to consumers.

Lee


Sent from my iPhone using Tapatalk

[leehyde30]

Every one will have different costs depending on who they buy from and the quality of the supplies.

Your best option will be to get the calculator out and determine your own costs based on the quality of product you are going to be using and the price you can buy in at.

Excluding mug costs my other direct costs for a standard 11oz mug comes in at just under £1 per mug - this includes electricity (easy to work out now with smart meters), ink, transfer paper, protection paper, presentation box, mailing box, bubble wrap etc.

some items you can work out a definite price on others have to be just an estimate.

There are too many variables involved for any one to give you a figure you can use in your own personal situation.

Kevin

Hi Kevin,

Thanks for your reply. I intend to use premium 10/11oz Sublimation mugs as I will be selling into retailers, corporate businesses and online retailing direct to customers.

I note with interest your additional costs. I'd most likely look to recover the mailing box and any additional packaging (bubble wrap) within my shipping costs which I intend to operate as a break even cost only. One of my big gripes is when a company try to profiteer from shipping costs!

Thanks for your feedback

Lee


Sent from my iPhone using Tapatalk

[froggy]

Hi Kevin,

Thanks for your reply. I intend to use premium 10/11oz Sublimation mugs as I will be selling into retailers, corporate businesses and online retailing direct to customers.

I note with interest your additional costs. I'd most likely look to recover the mailing box and any additional packaging (bubble wrap) within my shipping costs which I intend to operate as a break even cost only. One of my big gripes is when a company try to profiteer from shipping costs!

Thanks for your feedback

Lee


Sent from my iPhone using Tapatalk

You are still risking capital in your shipping cost. My way of looking at this is, if I risk money then I want some return on it. I allow extra margin for a return on the money I outlay to full fill an order. Take your shipping margin out of the price of the goods, show shipping at cost to the custy.
Once you have some volume and are using RMO account then get some margin out of the discount too. The customer doesnt know how much your mail costs, they only know how much it costs them to send.

If you are adding margin into your sale price it also means you can give free shipping deals on various order volumes.

[GoonerGary]

Hi Gary,

How do you get away with not budgeting for ink? Looking as a full set of SG400 cartridges, these are around £200. Surely this cost needs accounting for?

I buy litres of ink for around that cost. Mugs sold on the internet can have profit margins of 50p to maybe £12?

[leehyde30]

I buy litres of ink for around that cost. Mugs sold on the internet can have profit margins of 50p to maybe £12?

What printer setup do you use for your sublimation mugs Gary?


Sent from my iPhone using Tapatalk

[Customprintwales]

Hi Kevin,


I note with interest your additional costs. I'd most likely look to recover the mailing box and any additional packaging (bubble wrap) within my shipping costs which I intend to operate as a break even cost only. One of my big gripes is when a company try to profiteer from shipping costs!

Depends on your sales channels to a certain extent. The main reason though is when people look at P&P charges they tend to only look to the actual postage so mailing a standard mug might actually cost £3.60 if you include the cost of mailing box, bubble wrap, stamps etc the customer will look at the postage and see £2.85 and wonder why you've charged an extra 75p. Sadly most customers don't take into account all the packaging.

And has been said there is also the option for offering free shipping if someone buys a set of 6 mugs for example. You've at least priced in the cost of packaging and as a large mailing box for 6 mugs only cost a few more pence than a small individual mailing box the savings on packing can almost cover the cost of the postage. If you have packaging incorporated into postage pricing you don't get the benefits of that saving to offer free shipping.

Kevin

[Customprintwales]

Hi Gary,

How do you get away with not budgeting for ink? Looking as a full set of SG400 cartridges, these are around £200. Surely this cost needs accounting for? How many mugs would you expect to be able to print for that cost?

I would suggest you look at whether there is a CISS system available for your printer. Saves all the aggravation of cartridges running out and gives you the benefit of buying ink in bulk.

I have a CISS system on my Epsom workforce printer and life is so much easier than when I used both sealed cartridges and refillable cartridges. It was well worth the £30.00 for the system. Now I buy ink by the litre and top up the CISS when needed.