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TRANSCRIPT
2017 SURVEY
An analysis of computerized estimating systems, budgeted
hourly rates and mark-up practices used in the quick and
small format printing industry.
Dedicated to providing members with the latest tools and resources to boost profits and sales!
PUBLISHED BY NATIONAL PRINTING RESEARCH COUNCIL (NPRC) COPYRIGHT NPRC 2017
Hourly Rates &
Mark-Up Practices
Report
12%
23%
64%6 3%60%
39%
19%
4% 8% 4%
0.0%
15.0%
30.0%
45.0%
60.0%
75.0%
The 2017 Hourly Rates & Mark-up Practices Report, published by NPRC and QP Consulting, Inc., represents a compilation of data pertaining to hourly rates and mark-up practices as provided by survey participants. This study reflects data gathered between June 2 - June 6, 2017.
Published June 2017
RETAIL PRICE (PDF): $49.95RETAIL PRICE (Printed): $56.95
National Printing Research Council (NPRC)2110 South Dairy Road • West Melbourne, FL 32904
Phone 321-727-2444 • Fax [email protected]
Introduction 2017 Survey - Hourly Rates & Mark-Up Practices Report
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Notices And Acknowledgments
WARNING NOTICE:
As can be seen by reading the notice at the bottom of this page as well as the notice appearing on every page that follows, this document is fully protected under U.S. Copyright laws, and as such you have certain legal rights and obligations.
Rights You Have — You have the absolute right to make copies of this report for your records and you have the right to distribute one or more pages to supervisors and employees under your direct control. If you are in an editorial position, you have the right to quote information contained in this report, but only so far as the use of quoted material or references does not diminish the value of this Study to either participants and or purchasers of this Study. If material contained in this Study is quoted or referenced, we request that you include proper editorial credits. If you have any questions whatsoever as to allowable “fair use” you are encouraged to contact the publishers directly.
Rights You Do Not Have — You do not, however, have the right to make copies of this Study and distribute this information to employers, owners, officers, or employees of other corporate entities, organizations or associations not under your direct control. In addition, you may not place or otherwise provide this study in a lending library where it may be borrowed or viewed by employers, owners, officers, or employees of other corporate entities, organizations or associations not under your direct control. The publishers of this Study have made a substantial investment in the preparation and publication of this document and we have every intention of protecting these rights and prosecuting violations of our rights under U.S. Copyright statutes. Once again, if you have any doubts as to either your rights or your obligations, please contact the publishers.
COPYRIGHT NOTICE
Copyright 2017 by NPRC
All rights reserved. Except as permitted under the United States Copyright Act of 1976, reproduction or distribution of this document or any portion thereof, in any form or by any means, without the written consent of the copyright holders, is strictly prohibited. Violators of this copyright notice will be prosecuted to the fullest extent allowed under applicable federal statutes!
2017 Survey - Hourly Rates & Mark-Up Practices Report Introduction
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 3 – All Rights Reserved
Notices And Acknowledgments
A SPECIAL THANK YOU
NPRC would like to extend a special “Thank You” to the following
individuals for their assistance and feedback in helping us prepare this
first-of-its-kind survey on hourly rates and mark-up services. Without
the input and suggestions provided by individuals such as below, quality
industry research studies such as this would not be possible.
John Baicy, Immedia Print, Winston-Salem, NC
Annette Fitch, Print Plus, Buffalo, NY
John Fleming, EFI, Port St. Lucie, FL
Peggy Hoobery, Burdine Printing, Arroya Grande, CA
Bryan Zeigler, Replica Printing, Poway, CA
Introduction 2017 Survey - Hourly Rates & Mark-Up Practices Report
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2017 Survey - Hourly Rates & Mark-Up Practices Report Introduction
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TABLE OF CONTENTS
Table of Contents
Introduction ............................................................................................................................................7
Terminology and Definitions ..............................................................................................................10
SECTION I - PROFILE OF RESPONDENTS
PART 1 - General Company Data .....................................................................................................13
Basic Company Information
Survey Respondents: ..............................................................................................................15
Primary Classification .............................................................................................................15
Market Classification ..............................................................................................................15
Total # of FT & PT employees ................................................................................................15
Total Annual Sales ...................................................................................................................15
Sales Per Employee .................................................................................................................15
Square Feet ...............................................................................................................................16
Sales Per Square Feet ..............................................................................................................16
Independent or Franchise .....................................................................................................16
Highlights & Overview of Statistics Appearing in this Study .............................................17
Computerized Estimating .......................................................................................................21
Which Software Package/Program ........................................................................................21
PART 2: Computerized Estimating Systems
Years Experience with the Above Mentioned Software ............................................................22
Overall Rating of this Software Package .....................................................................................22
Prior Software Packages Used .....................................................................................................23
Overall Rating of Previous Software Package ............................................................................23
Reason for Change .........................................................................................................................24
PART 3 - Hourly Rates
Hourly Charge for Hand Labor .....................................................................................................27
Specific Charges .............................................................................................................................27
Hourly Charges for Graphic Services ..........................................................................................27
Method Used to Track Time .........................................................................................................28
Rate the Accuracy of Your Time-Tracking ..................................................................................28
Hourly Charges for Specific Functions ........................................................................................29
PART 4 - Standard Mark-Up Practices
Mark-up Practices ..........................................................................................................................33
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Table of Contents
Mark-up Practices ..........................................................................................................................34
Minimum Mark-up Fees .................................................................................................................35
Minimum Mark-up Amount or Charge ........................................................................................35
Mark-up Authority (Gen. Mgrs) ...................................................................................................35
Mark-up Authority (CSRs) ............................................................................................................35
Marking Up Paper? ........................................................................................................................36
Actual Mark-up Prices for Offset Printing...................................................................................37
Last Question (Optional) ..............................................................................................................38
SECTION II - BREAKOUTS BY SALES
Hourly Rates/Specific Charges
How Hand Labor is Typically Charged .......................................................................................40
Specific Charges .............................................................................................................................40
Typical Charges Graphic Services ...............................................................................................40
Hourly Charges for Specific Functions ........................................................................................42
Standard Mark-up Practices
Mark-up Practices on Larger Jobs ...............................................................................................42
Sub-Contracted Services - Mark-up Practices Based Upon Costs ...........................................44
Paper Mark-up Practices - Mark-up Practices Based Upon Costs ...........................................46
SECTION III - BREAKOUTS BY SPE
Hourly Rates/Specific Charges
How Hand Labor is Typically Charged .......................................................................................50
Specific Charges .............................................................................................................................50
Typical Charges Graphic Services ...............................................................................................50
Hourly Charges For Specific Functions .......................................................................................52
Standard Mark-up Practices
Mark-up Practices on Larger Jobs ...............................................................................................52
Sub-Contracted Services - Mark-up Practices Based Upon Costs ...........................................54
Paper Mark-up Practices - Mark-up Practices Based Upon Costs ...........................................56
The 2017 Survey Hourly Rates & Mark-up Practices Report Comment Sheet ..............................59
2017 Survey - Hourly Rates & Mark-Up Practices Report Introduction
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July 1, 2017
Dear Survey Participant or Fellow Printer,
It is with great pleasure that we present to you the results of our NPRC survey on hourly rates & mark-up practices. The survey was launched June 7, 2017 and closed on June 13th. The original published deadline was June 20th, however, due to a much higher response rate than expected we chose to close the survey early. We received more than 240 completed surveys in the week the survey was available.
Surveys came from firms with annual sales ranging between $300,000 and $12 mil-lion. After establishing an outlier range of <$300,000 or greater than $7 million, we ended up with 210 valid surveys and an outstanding margin of error of +/- 4.8% for 90% of our questions. Both the response rate and the margin of error on this survey is one of the best we have received in a couple of years. We attribute the excellent response rate to the fact that our survey was much shorter than many of our previ-ous surveys and was limited to a few closely related questions dealing with hourly rates and mark-up practices.
All printing firms that participated in this survey received (or will receive) a compli-mentary PDF copy of the final report. Assuming you are one of those participants, or you have purchased a PDF of this report, we strongly urge you to immediately print out this report on your color or B&W printer and bind it appropriately. We believe that for documents such as this to be of value, they need to be treated as a manage-ment tool, and that means using magic markers, pens and paperclips to highlight specific entries or prices that need to be possibly changed in your current pricing systems, whether they be computerized or manual.
If a few prices or mark-up rates strike you as high, do not be too quick to respond with the classic rationalization, “There is no way I could possibly get away with charg-ing prices like that in my market area. If I did I would go out of business.” Our response
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INTRODUCTION
Introduction 2017 Survey - Hourly Rates & Mark-Up Practices Report
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to that type of reaction is you are most likely wrong, and really don’t really under-stand your market area as well as you think you do. We would strongly challenge you on the validity of that claim – how it was arrived at and the data it is based upon.
On the other hand, if you react to some of the rates noted in this report as “being lower than you think they should” you may very well be correct. Remember, when we conduct surveys, the prices we report represent prices as they are, not what they should be! While we can vouch for the accuracy of the data provided, especial-ly with the exclusion of certain outliers, we cannot tell you that these are the rates you should charge in order for you to achieve a desired level of profitability.
Remember, when we conduct surveys, the prices we report represent prices as they are, not what they should be!
Just because the majority of our survey participants report charging $55 per hour for a specific operation does not mean, by any stretch, that this is the best or most logical rate to charge given all the variables to be considered. In many cases, we know for a fact that some of the rates and charges noted in this report have not been changed or modified in years and that is due to two factors:
· Many printers are simply not that familiar or comfortable with how their estimating systems actually work, and as a consequence they are hesitant to make virtually any change in pricing, even if such a change would have only a modest impact on the price of a typical job.
· Other printers seem burdened by the illusion that their customers have nothing better to do than monitor on a day-to-day, hour-to-hour basis the prices they are being charged for printing, and that any change that is spotted risks the customer storming off and seek-ing another vendor! The solution for many printers is to leave well enough alone and make no changes in pricing – hoping that future volume or other cost-saving steps will make up the difference.
Armed with a yellow highlighter and a few paperclips, we estimate that it should take no more than 20 minutes or so for an owner to thoroughly read this report from cover to cover and hopefully underline a few hourly rates and charges that deserve to be re-examined and possibly modified.
2017 Survey - Hourly Rates & Mark-Up Practices Report Executive Summary
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We believe it is quite possible that a typical printing firm in our industry in the $500,000 to $1 million range can quite easily add $10-$30,000 to the bottom line (and possibly much more) just by updating a few basic prices. Here is how we analyze the situation in terms of just one department and two modest changes:
· First, we know that the average graphics department historically has reported that it is rare for it to capture or charge for much more than 20 hours of billable time in an average week.
· Second, we also know that the average hourly graphic arts charge has been in the $65-70 range for more than 10 years in this industry, with little changes being noted.
Now, imagine if you could capture or charge for just one more hour of graphic ser-vices per day? That alone would put $18,000 to the bottom line at the end of the year. Now, imagine too if you immediately institute an increase in basic hourly rates from $70 to $80. Relying on that 50% utilization rate noted previously, we would still put an additional $11,000 to the bottom line. Combined, those two changes alone would result in an additional $30,000 going to the bottom line for the typical printing firm doing $1,000,000 in annual sales. Those are just starter suggestions. We’ll leave the rest up to you.
As always, we appreciate your support either as a participant in one of surveys or as someone who has purchased this report instead. Your efforts and contributions, in either situation, contribute to our ability to continue producing research studies and reports that benefit our industry.
Sincerely,
John Stewart, Bob Hall,Executive Director, NPRC Director of Communications, NPRC
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TERMINOLOGY AND DEFINITIONS
The 2017 Hourly Rates & Mark-up Practices Report uses several terms to clarify the pric-es, ratios and percentages provided in this report. Below are definitions for the terms and phrases used frequently throughout this report:
AVERAGE (OR MEAN) – The average or mean is the sum of the measures or numbers in a distribution divided by the number of measures or responses.
MARGIN OF ERROR – The margin of error simply indicates that if we surveyed the entire population, rather than just a small sampling, we could still predict within a 95% degree of cer-tainty that prices, hourly rates and other charges we have noted in this report would vary by no more and no less than the percent indicated. The margin of error for most prices and rates noted in this report is +/- 4.8% or better.
MEDIAN – Median is often confused with Average or Mean. Median is the middle measure or price in a distribution of numbers or prices ordered from high to low. It is possible for both the median and mean to be the same, but it is not unusual for these numbers to be different.
EXAMPLE: In the following ordered list of numbers –
10, 12, 15, 18, 20, 22, 45
The Median is = 18
The Average is = 20.28
SECONDARY CALCULATIONS – Most medians and averages were calculated to two decimal places. Since not all questions were answered by all respondents, summary data such as medi-ans and averages are only accurate as applied to the specific question they are based upon. For example, dividing average projected 2017 sales by the reported average number of employees will differ slightly from what we report. Our average SPE is an average of all SPEs reported direct-ly by participants, as opposed to using a secondary calculation of dividing one average by the other. In either case, however, the accuracy of the data, as stated previously, falls within a margin of error of approximately +/- 4% or better.
SECTION IProfile of
Respondents
12%
23%
64%6 3%60%
39%
19%
4% 8% 4%
0.0%
15.0%
30.0%
45.0%
60.0%
75.0%
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
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PART 1General Company Data
n Primary Classificationn Market Classification
n Total # of FT & PT Employeesn Total Annual Sales
n Square Feetn Independent or Franchise
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2017 Survey - Hourly Rates & Mark-Up Practices Report Section I - Profile of Respondents
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BASIC COMPANY INFORMATION
Survey Respondents:Total Number of Respondents ...................................................................................................... 246Surveys excluded as “Outliers” but included in distribution list .............................................. 36Surveys rejected for incomplete or inaccurate data ..................................................................... 0Valid surveys, subject to filtering criteria and outliers ............................................................. 210
NOTE: Although all companies who submitted a properly completed “valid” survey and returned it by the published deadline received a complimentary copy of the final report, we excluded data from firms with sales less than $300,000 or greater than $7 million. There were 36 such firms.
1. Primary ClassificationFirms providing primarily digital printing services ................................................................... 26%Firms providing primarily offset printing services ...................................................................... 3%Firms providing both digital & offset printing services ............................................................ 70%In-plant/educational Institution ...................................................................................................... 1%
2. Market Classification Rural Area (Under 25,000 population) ........................................................................................... 6%Small Market (25,000-100,000 population) .................................................................................. 21%Medium Market (100,000-300,000 population) ........................................................................... 28%Large Market (300,000-1 million population) .............................................................................. 22%Major Market (1 million + population) ........................................................................................ 22%
Distribution of Participants by SPE - The chart above represents a histogram depicting the distribution of survey participants by their reported sales per employee (SPE). As an example, 16.4% of our participants reported a SPE between $140,000 and $160,000. An additional 25% of all our respondents reported achieving SPE levels of $160,000 or greater. The margin of error for these SPE statistics is +/- 4%.
4.4%
12.9%16.9%
24.0%
16.4%
12.0%
5.8%3.6%
1.8% 1.3% 0.0% 0.9%
$80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 $220,000 $240,000 $260,000 $280,000 $300,000
Percent of Participants at Various SPE Levels
EXAMPLE: The 24% above the “yellow” bar indicates that 24% of all respondents reported a SPE between $120,000 & $139,999.
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
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3. Total # of FT & PT employeesAverage .............................................................................................................................................. 8.6
Median ............................................................................................................................................... 6.0
4. Total Annual Sales Average Median
Sales 2015 ..................................................................................................... $1,106,725 751,817
Sales 2016 ..................................................................................................... $1,149,042 799,750
Sales 2017 (projected) ................................................................................ $1,196,612 822,500
Sales Per EmployeeAverage Sales Per Employee ................................................................................ $140,849
Median Sales Per Employee ................................................................................. $133,500
5. Square FeetAverage .......................................................................................................................................... 6,604
Median ........................................................................................................................................... 4,614
Sales Per Square FeetAverage Sales Per Square Feet .................................................................................... $214
Median Sales Per Square Feet ..................................................................................... $192
6. Independent or Franchise Independent .................................................................................................................................... 77%
Franchise ......................................................................................................................................... 23%
2017 Survey - Hourly Rates & Mark-Up Practices Report Section I - Profile of Respondents
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Highlights & Overview of Statistics Appearing in this StudyNOTE: The graphs appearing on this and the next page are provided in order to present a quick “graphic overview” of key ratios in the industry.
WEST24%
CENTRAL20% NORTHEAST
28%
SOUTHEAST 26%
CANADA 2%
DISTRIBUTION OF RESPONDENT FIRMS BY REGION
Geographic Distribution – The map above simply illustrates the distribution of our 246 survey participants based upon where they were located. As you can see, our database was well distributed across the U.S. with no obvious anomalies observed.
Market Size – Traditionally, we have always asked survey participants to designate, as best they can, the size of the market within which they are located. The chart above represents the distribution of 246 firms that submitted a survey form. This distribution is quite similar to what we have received for previous printing industry surveys.
0%
5%
10%
15%
20%
25%
30%
Rural Area Small Market Medium Market Large Market Major Market
6%
21%
28%
22% 22%
DISTRIBUTION BY MARKET SIZE
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
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Highlights & Overview of Statistics Appearing in this Study
11%
30%
26%
31%
2%
Sales < $300,000 (27) $300,000 - 645,999 (72) $650,000 - $1,199,999 (63) $1,2 - $7 Mil. (74) Sales > $7 Mil. (5)
SALES BREAKDOWNS (All respondents)
75%70%
67%
60%55%
70%
60%57%
50% 50%
YOUR COST $100 YOUR COST $250 YOUR COST $500 YOUR COST $1,000 YOUR COST $2,500
AVERAGE & MEDIAN PAPER MARK-UPS
Average Mark-up % Median Mark-up %
Distribution by Sales – Prior to eliminating “outliers” in terms of sales, we listed and ranked (low to high) the projected 2017 sales of all firms supplying that information (241). We then divided that list into five breakouts to give readers an idea of the types and sizes of firms that responded to this survey. While all firms submitting sur-veys received a complimentary copy of our final report, we chose to eliminate responses from firms with annual projected sales below $300,000 or above $7 million from our statistical analysis.
Paper Mark-up Practices – Although more detail can be found on pages 46-47, the bar chart above illustrates the average and median mark-up rates that would be applied to paper at various costs ranging from $100 to $2,500.
PART 2Computerized
Estimating Systemsn Computerized Estimating?
n Which Software Package/Programn Years experience with the above mentioned software
n Prior software packages usedn Overall rating of previous software package
n Reason for change
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
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2017 Survey - Hourly Rates & Mark-Up Practices Report Section I - Profile of Respondents
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7. Computerized Estimating? Do you currently rely on a commercially available computer-ized estimating and pricing system to prepare the bulk of your estimates?
PART 2: COMPUTERIZED ESTIMATING SYSTEMS
ALL COMPANIES - SALES $300,000–$7,000,000
Yes .............................................................................................................................................85.7%
No ..............................................................................................................................................14.3%
8. Which Software Package/Program - Please indicate which of the following estimating programs you are currently using?
Although our original survey draft was intended to simply address basic hourly rates and mark-up practices, we quickly realized that our survey would leave a lot of issues unresolved if we did not, at the very least, address how these hourly rates and mark-up practices were arrived at. We wanted to keep our survey brief, but we felt obligated to include seven specific questions as to computerized estimating and pricing. We were somewhat surprised that somewhere between 14-16% of all respondents indicated they were not using commercially available software but instead relying on manual methods ranging from literally pencil and paper, to Excel spreadsheets they had developed.
ALL COMPANIES - SALES $300,000–$7,000,000 PERCENT
EFI - PrintSmith Classic (48) ..................................................................................................24.0%
EFI - PrintSmith Vision (45) ....................................................................................................22.5%
EFI - Misc. (6) .............................................................................................................................3.0%
Franklin (8) ................................................................................................................................4.0%
Printer’s Plan (48) ...................................................................................................................24.0%
Printer’s Plus (6) ......................................................................................................................3.0%
PrintLeader (8) .........................................................................................................................4.0%
Other (23) ................................................................................................................................11.5%
Manual Calculations (8) ...........................................................................................................4.0%
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
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9. Years experience with the above mentioned software - How many years have you been using the above software? You may use decimal equivalents for your answer. (Example, 8.5 would indicate you 8-1/2 years.)
PART 2: COMPUTERIZED ESTIMATING SYSTEMS
10. Overall rating of this software package - Using the slider below, how would you rate this software package in terms of cost, ease-of-use and functionality?
ALL COMPANIES - SALES $300,000–$7,000,000 YEARS EXPERIENCE
EFI - PrintSmith Classic (48) .....................................................................................................16.3EFI - PrintSmith Vision (45) .........................................................................................................6.8EFI - Misc. (6) ..............................................................................................................................16.8Franklin (8) .................................................................................................................................15.7Printer’s Plan (48) ......................................................................................................................13.7Printer’s Plus (6) ........................................................................................................................15.3PrintLeader (8) ..........................................................................................................................20.0Other (23) .....................................................................................................................................9.7Manual Calculations (8) ............................................................................................................12.2
66.9
66.4
72.3
48.8
81.9
60.5
76.1
69.5
66.9
0 10 20 30 40 50 60 70 80 90
EFI - PRINTSMITH CLASSIC (48)
EFI - PRINTSMITH VISION (45)
EFI - MISC. (6)
FRANKLIN (8)
PRINTER'S PLAN (48)
PRINTER'S PLUS (6)
PRINTLEADER (8)
OTHER (23)*
MANUAL CALCULATIONS (8)
Current Estimating Software Rating
Software Ratings – Approximately 200 firms responded when we asked them to tell us what current estimating/pricing software they were using and then to rank that software on a sliding scale of 1-100. In order to avoid the possibility of highly distorted ratings due to a very small sample, we require a software package to be cited by at least six printing firms before we would list it in our analysis. At the very least, the above chart provides a basic starting point for printers looking to acquire their first estimating/pricing system or to those who find they have outgrown their current software and are curious about how specific software programs are rated by current users.
2017 Survey - Hourly Rates & Mark-Up Practices Report Section I - Profile of Respondents
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11. Prior software packages used - Prior to implementing the estimating/pricing software noted above, have you previously used one of the following? If so, please indicate. Please indicate only the most recent software prior to your current program:
PART 2: COMPUTERIZED ESTIMATING SYSTEMS
12. Overall rating of previous software package - Using the slider below, how would you rate this prior software package in terms of cost, ease-of-use and functionality?
ALL COMPANIES - SALES $300,000–$7,000,000 DISTRIBUTION PERCENT
EFI - PrintSmith Classic (33) ..................................................................................................27.0%
Franklin (13) ............................................................................................................................10.7%
Printer’s Plan (4) .......................................................................................................................3.3%
Printer’s Plus (9) ......................................................................................................................7.4%
PrintLeader (12) .......................................................................................................................9.8%
Other (23) ................................................................................................................................18.9%
Manual Calculations (28) .......................................................................................................23.0%
64.8
42.8
42.8
44.6
63.4
69.5
42.5
0 10 20 30 40 50 60 70 80
EFI - PRINTSMITH CLASSIC (33)
FRANKLIN (13)
PRINTER'S PLAN (4)
PRINTER'S PLUS (9)
PRINTLEADER (12)
OTHER (23)
MANUAL CALCULATIONS (28)
Ratings Previous Software
Previous Software – Approximately 60% of our respondents (122 firms) indicated they had used previous soft-ware packages prior to moving to their current program. It is worth nothing that even though survey respondents had moved on to newer estimating programs, they provided fairly high ratings to their “old” software. Note the relative high scores given to both EFI and PrintLeader. According to our internal data, most of the printers who in-dicated they had previously used EFI Printsmith Classic simply remained in the family and transition to EFI Vision, rather than to another company.
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
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13. Reason for change - Please indicate the primary reason(s) for changing from your previ-ous software package to the software program you are currently using: (Multiple choices permitted)
PART 2: COMPUTERIZED ESTIMATING SYSTEMS
Reasons for Change – The graph above merely illustrates the variety of reasons printers provided for ultimately discarding their previous software and moving to another program. The dominant reason given for changing was that the program “Did not meet my needs.” Included in that would be printers looking for more integration with accounting programs, contact management software, and the desire for more customized reports.
12.6%
4.4%
9.6%
14.1%
50.4%
5.2%
37.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
CUSTOMER SUPPORT LACKING
PROGRAM TOO COMPLEX
ANNUAL SUPPORT TOO HIGH
PROBLEMS INTEGRATING
DID NOT MEET MY NEEDS
WOULD NOT PRODUCE PRICES I NEEDED
OTHER
Primary Reasons for Changing Software
PART 3Hourly Rates
n Hourly charge for hand laborn Specific charges
n Hourly charges for graphic servicesn Method used to track time
n Rate the accuracy of your time-trackingn Hourly charges for specific functions
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
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2017 Survey - Hourly Rates & Mark-Up Practices Report Section I - Profile of Respondents
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14. Hourly charge for hand labor - For jobs produced internally that only require manual labor with no machines involved (hand collating/gathering as an example) please indicate the most common/likely method for charging:
PART 3: HOURLY RATES
ALL COMPANIES - SALES $300,000–$7,000,000 PERCENT
By the pick-up or piece ..........................................................................................................28.4%
By the estimated time involved ............................................................................................71.6%
15. Specific charges - Please enter the appropriate charge for the following as they relate to hand labor? To enter charges less than a dollar, precede entry with a decimal point... EXAMPLE: Enter 25 cents as .25 or 0.25.
ALL COMPANIES - SALES $300,000–$7,000,000 AVERAGE MEDIAN
Minimum charge for hand-labor .......................................................... $17.00 $15.00
Hourly Charge ........................................................................................ $48.00 $45.00
Charge per pick-up ................................................................................ $0.101 $0.070
16. Hourly charges for graphic services - Graphic services are most typically charged on an hourly basis in the printing industry. Please indicate below your hourly charge for each of the three levels of graphics services as defined below:
ALL COMPANIES - SALES $300,000–$7,000,000 AVERAGE MEDIAN
Basic Graphics - Hourly Charge ........................................................... $69.75 $70.00
Complex Graphics - Hourly Charge ..................................................... $81.00 $80.00
Advanced Graphics - Hourly Charge ................................................... $98.71 $90.00
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 28 – All Rights Reserved
17. Method used to track time - Accurate tracking of time is a major challenge in the industry. Please indicate below the method(s) you typically use to track and charge for graphic services. You may check more than one choice:
PART 3: HOURLY RATES
18. Rate the accuracy of your time-tracking - Using the slider, how would you rate your firm’s ability to track time in the graphics’ department?
ALL COMPANIES - SALES $300,000–$7,000,000
AVERAGE MEDIAN
Rating the accuracy of your time tracking method(s): ............................ 53 50
We use comp time clock
We rely on artist We use price list CSRs estimate time
CSRs coordinate What market will bear
Perceived Value
10.5%
73.8%
20.5%
28.6%
38.1%
19.5% 18.6%
Preferred Method for Tracking Time
Tracking Time in the Graphics Department – Despite huge advances in technology and software, along with the potential for major improvements in productivity, no reliable method for accurately tracking time in the graphic arts department has been found. Amazingly, almost 74% of all survey participants indicated they still rely on the graphic artist to estimate the time involved to produce a specific job. Even more revealing is the candid assessment printers provided when asked to rate the accuracy of their “time tracking” methods – Their rating? 53!
2017 Survey - Hourly Rates & Mark-Up Practices Report Section I - Profile of Respondents
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 29 – All Rights Reserved
PART 3: HOURLY RATES
19. Hourly charges for specific functions - While many printing & copying operations are estimated on a per piece, per-cut or per-hole drilled basis, there are occasions or jobs (especially larger ones) that require estimating the amount of time required to complete the task. Please indicate your typical average hourly charge for the following operations when per piece or per sheet, etc. is not practical:
Hourly Rates – As you can see, the average and median rates for eleven basic operations involving some degree of manual labor ranges between $50 and $55 per hour. We believe these rates are well “off-the-mark” and should be addressed by most owners. The facts are that an hourly rate for an individual’s time is no different than arriving at a budgeted hourly rate for a piece of equipment – the only difference is that when doing a calculation for the former you would have $0 listed for the value of the equipment. If owners used the same process for arriving at an hourly rate for an employee as they do a piece of equipment they would quickly realize that more realistic hourly rates for the typical employee earning $14-16 per hour, with a profit goal of 15-20%, would more likely fall in the $68-80 range – much higher than the $50-55 noted above.
(See special note next page.)
$56.32
$55.88
$58.05
$48.03
$54.55
$51.97
$53.80
$55.79
$55.33
$50.05
$50.38
$55.00
$50.00
$55.00
$45.00
$50.00
$50.00
$50.00
$50.00
$55.00
$50.00
$50.00
$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00
Cutting
Folding (straight)
Folding (side-gate)
Hand gathering
Machine collating
2/3 hole drilling
GBC/Wire-O
Laminating
Numbering/perfing
Padding (standard)
Padding (carbonless)
Average & Median Hourly Rates for Various Labor Operations
Median Average
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 30 – All Rights Reserved
Special Note From Survey – The charges above should represent the hourly charge for that specific operation, including any and all charges for overhead and profit. This is the hourly charge you would use if forced to prepare a hand-estimate. We recognize that many of these operations can involve various set-up charges and other variables, but for the purposes of this survey we are only interested in the typical hourly charge when other estimating options or methods are not available.
PART 4Standard
Mark-Up Practicesn Mark-up Practices - Method
n Mark-up Practices $$n Minimum Mark-up Fees
n Minimum Mark-up Amount or Chargen Mark-up Authority (Gen. Mgrs)
n Mark-up Authority (CSRs)n Marking Up Paper?
n Actual Mark-up Prices for Offset Printingn Gross Profit Question
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
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2017 Survey - Hourly Rates & Mark-Up Practices Report Section I - Profile of Respondents
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 33 – All Rights Reserved
20. Mark-up Practices - Assuming you must quote on a large $$$ job that must be brokered or outsourced to a 3rd party, and assuming this job involves outside costs of at least $1,000, will you leave it strictly to your computerized estimating system to arrive at the final selling price or will you use some type of non-computerized approach such those suggested below?
PART 4: STANDARD MARK-UP PRACTICES
We rely on Computer, 19.1%
We rely on Manual Mark-ups, 56.9%
Owner tends to Handle Mark-ups, 24.0%
Mark-up Practices on Larger Jobs
Mark-ups on Outsourced Jobs – The pie-chart above illustrates how most shops handle jobs that are out-sourced or brokered to 3rd parties, especially jobs involving costs of $1,000 or more. Despite advanced and highly capable estimating software, it is somewhat surprising to note than less than 20% of our respondents, many of whom reported annual sales of $1-3 million, relied on their computerized estimating systems to provide the mark-up rate. It is interesting to speculate, in the case where owners claim responsibility for mark-ups on larger jobs, whether their managers or CSRs, if assigned that responsibility instead, would indeed use a mark-up rate higher or lower than the owner would apply? Our guess, at least in many situations, is that the manager or CSR, if left to their own, would be more likely to stick to the company’s pre-determined mark-up tables and be less inclined to discount for “special customers.” However, that is only speculation on our part.
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 34 – All Rights Reserved
21. Mark-up Practices - Most firms tend to apply mark-ups based upon their costs. Assum-ing we are talking about a product such as a pocket folder, newsletter, continuous form or some other product that you cannot produce internally and consequently must be brokered out, what would you sell a product costing the following. Please enter the $$$ amount that this product would be sold for, not a percentage or the amount of the mark-up. We will calculate mark-up rates and percentages for the final report.
ALL COMPANIES - SALES $300,000–$7,000,000
AVERAGE AVERAGE MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 99% $199
Your Cost $250 ....................................................................................... 85% $463
Your Cost $500 ....................................................................................... 75% $875
Your Cost $1,000 .................................................................................... 65% $1,650
Your Cost $2,500 .................................................................................... 55% $3,886
Your Cost $5,000 .................................................................................... 48% $7,421
MEDIAN MEDIAN MARK-UP % SELLING PRICE
Your Cost $100 ..................................................................................... 100% $200
Your Cost $250 ..................................................................................... 100% $500
Your Cost $500 ....................................................................................... 77% $884
Your Cost $1,000 .................................................................................... 65% $1,650
Your Cost $2,500 .................................................................................... 50% $3,750
Your Cost $5,000 .................................................................................... 50% $7,500
PART 4: STANDARD MARK-UP PRACTICES
2017 Survey - Hourly Rates & Mark-Up Practices Report Section I - Profile of Respondents
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 35 – All Rights Reserved
PART 4: STANDARD MARK-UP PRACTICES
22. Minimum Mark-up Fees - Especially as it applies to smaller $$$ jobs, do you have a mini-mum markup fee that you apply?
ALL COMPANIES - SALES $300,000–$7,000,000
AVERAGE MEDIAN
Minimum Mark-up Amount or Charge ................................................. $43.00 $25.00
ALL COMPANIES - SALES $300,000–$7,000,000 PERCENT
Yes. ...............................................................................................................................................42%
No .................................................................................................................................................58%
23. Minimum Mark-up Amount or Charge - If YES to question #22, above, what is that mini-mum fee in $$$?
24. Mark-up Authority (Gen. Mgrs) - As a general rule, does your general manager have the authority for ultimately deciding which mark-up rates to apply on out-sourced jobs?
ALL COMPANIES - SALES $300,000–$7,000,000 PERCENT
Yes. ...............................................................................................................................................89%
No .................................................................................................................................................11%
25. Mark-up Authority (CSRs) - As a general rule, do your CSRs have the authority for ulti-mately deciding which mark-up rates to apply regarding out-sourced jobs?
ALL COMPANIES - SALES $300,000–$7,000,000 PERCENT
Yes. ...............................................................................................................................................45%
No .................................................................................................................................................44%
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 36 – All Rights Reserved
PART 4: STANDARD MARK-UP PRACTICES
26. Marking Up Paper? Looking at your internal methods (computerized or manual) for estimating an offset printing job, is the cost of the paper involved in the job marked-up separately or is the cost included with all other costs (plates, ink, press time, etc.) and then subjected to a single mark-up rate?
Paper costs marked up separately
74%
Paper marked-up with all other costs
22%
Not sure4%
Paper Mark-up Practices
Paper Mark-up Practices – As expected, most companies indicated that paper mark-ups are handled separate-ly from all other costs, at least when it comes to offset printing jobs. As you can see, 74% of respondents told us they mark-up their paper separately. Shockingly, approximately 4% told us they didn’t know how their estimating systems approached this issue. As for specific mark-up rates, see the following page for both average and median mark-up rates applied to five specific paper costs.
2017 Survey - Hourly Rates & Mark-Up Practices Report Section I - Profile of Respondents
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 37 – All Rights Reserved
PART 4: STANDARD MARK-UP PRACTICES
27. Actual Mark-up Prices for Offset Printing - Assuming the paper costs indicated below, what would this paper be marked-up or sold for in your computerized or manual estimat-ing system?
ALL COMPANIES - SALES $300,000–$7,000,000
AVERAGE AVERAGE MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 75% $175
Your Cost $250 ....................................................................................... 70% $425
Your Cost $500 ....................................................................................... 67% $833
Your Cost $1,000 .................................................................................... 60% $1,597
Your Cost $2,500 .................................................................................... 55% $3,870
MEDIAN MEDIAN MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 70% $170
Your Cost $250 ....................................................................................... 60% $400
Your Cost $500 ....................................................................................... 57% $785
Your Cost $1,000 .................................................................................... 50% $1,500
Your Cost $2,500 .................................................................................... 50% $3,750
Section I - Profile of Respondents 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 38 – All Rights Reserved
PART 4: STANDARD MARK-UP PRACTICES
28. Last Question (Optional) - If asked to compute the gross profit of a brokered job that costs the company $100 and is sold for $200, how would your typical CSR respond?
29%27%
19%
24%
My CSRs would answer correctly "gross profit of 50%"
My CSRs would answer "gross profit of 100%"
The answers would be mixed… One or more CSRs could not answer
How would CSRs respond…
A Gross Profit of… Although the question was “optional,” 201 owners chose to answer our question regarding “gross profit.” We asked the question about “gross profit” because we believe that many, many employees truly do not understand terms such as “profit” or “gross profit.” If employees believe that an owner is making a profit (gross or net) of 100% (impossible unless you have no costs whatsoever) then they are less likely to be a team member when it comes to actually applying fair mark-up rates. Employees who do not fully grasp or understand how gross profit (selling price less cost of goods) or net profit (selling price less all direct and indirect costs) is calculated are the same employees who often feel they are under-paid by the owners and believe that the company is frequently taking advantage of customers by over-charging them! I believe it is critically important to spend five minutes with CSRs and others involved in pricing to educate them that a job that is sold for $200 and involves a brokered product or service costing $100 produces a gross profit of 50% and not 100%! Even more important, it needs to be pointed out that the gross profit of 50% or $100 must now be used cover their labor costs, management labor, general over-head expenses and a myriad of other costs before even approaching the final profit of 16% or $32!
If you expect your company to be profitable, and possibly achieve “profit leader” status, then your employees must understand and appreciate what basic terms such as “gross profit” or “net profit” are all about - even if they are not called upon to do those calculations themselves! Unfortunately, many owners simply do not make the effort to educate their employees in this regard.
SECTION IIBreakouts
by Salesn SALES $300-$550,000n SALES $1.4 MIL -$7 MIL
The purpose of the breakout parameters noted above, is to allow readers to quickly compare
(viewing facing pages) the differences in markup practices for hand labor and general
mark-up practices when participants are analyzed based upon either “sales” or “SPE.”
12%
23%
64%6 3%60%
39%
19%
4% 8% 4%
0.0%
15.0%
30.0%
45.0%
60.0%
75.0%
Section II - Breakouts by Sales 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 40 – All Rights Reserved
HOURLY RATES/SPECIFIC CHARGES
Breakout By Sales $300-$550,000
HOW HAND LABOR IS TYPICALLY CHARGED PERCENT
By the pick-up or piece ..........................................................................................................29.4%
By the estimated time involved ............................................................................................70.6%
SPECIFIC CHARGES AVERAGE MEDIAN
Minimum charge for hand-labor .......................................................... $11.32 $10.00
Hourly Charge ........................................................................................ $41.54 $40.00
Charge per pick-up ................................................................................ $0.056 $0.045
TYPICAL CHARGES GRAPHIC SERVICES AVERAGE MEDIAN
Basic Graphics - Hourly Charge ........................................................... $67.61 $65.00
Complex Graphics - Hourly Charge ..................................................... $78.18 $75.00
Advanced Graphics - Hourly Charge ................................................... $93.75 $85.00
2017 Survey - Hourly Rates & Mark-Up Practices Report Section II - Breakouts by Sales
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 41 – All Rights Reserved
HOURLY RATES/SPECIFIC CHARGES
Breakout By Sales $1.4 MIL -$7 MIL
HOW HAND LABOR IS TYPICALLY CHARGED PERCENT
By the pick-up or piece ..........................................................................................................20.0%
By the estimated time involved ............................................................................................80.0%
SPECIFIC CHARGES AVERAGE MEDIAN
Minimum charge for hand-labor .......................................................... $23.95 $15.00
Hourly Charge ........................................................................................ $51.77 $50.00
Charge per pick-up ................................................................................ $0.141 $0.130
TYPICAL CHARGES GRAPHIC SERVICES AVERAGE MEDIAN
Basic Graphics - Hourly Charge ........................................................... $70.93 $70.00
Complex Graphics - Hourly Charge ..................................................... $82.84 $80.00
Advanced Graphics - Hourly Charge ................................................. $100.76 $95.00
Section II - Breakouts by Sales 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 42 – All Rights Reserved
HOURLY RATES/SPECIFIC CHARGES
Breakout By Sales $300-$550,000
HOURLY CHARGES FOR SPECIFIC FUNCTIONS
AVERAGE MEDIAN
Cutting ..................................................................................................... $50.20 $45.00
Folding (straight) ................................................................................... $48.03 $45.00
Folding (side-gate) ................................................................................. $51.43 $45.00
Hand gathering ....................................................................................... $42.55 $45.00
Machine collating................................................................................... $45.56 $45.00
2/3 hole drilling ...................................................................................... $46.90 $45.00
GBC/Wire-O ............................................................................................. $47.72 $45.00
Laminating .............................................................................................. $48.33 $45.00
Numbering/perfing ................................................................................ $48.66 $45.00
Padding (standard) ................................................................................ $44.41 $45.00
Padding (carbonless) ............................................................................ $45.17 $45.00
STANDARD MARK-UP PRACTICES
Breakout By Sales $300-$550,000
MARK-UP PRACTICES ON LARGER JOBS PERCENT
We rely on Computer ................................................................................................................9.8%
We rely on Manual Mark-ups .................................................................................................52.9%
Owner tends to Handle Mark-ups .........................................................................................37.3%
2017 Survey - Hourly Rates & Mark-Up Practices Report Section II - Breakouts by Sales
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HOURLY RATES/SPECIFIC CHARGES
Breakout By Sales $1.4 MIL -$7 MIL
HOURLY CHARGES FOR SPECIFIC FUNCTIONS
AVERAGE MEDIAN
Cutting ..................................................................................................... $62.06 $60.00
Folding (straight) ................................................................................... $65.42 $60.00
Folding (side-gate) ................................................................................. $68.94 $60.00
Hand gathering ....................................................................................... $50.59 $50.00
Machine collating................................................................................... $62.67 $55.00
2/3 hole drilling ...................................................................................... $57.32 $55.00
GBC/Wire-O ............................................................................................. $56.27 $50.00
Laminating .............................................................................................. $62.08 $55.00
Numbering/perfing ................................................................................ $60.15 $60.00
Padding (standard) ................................................................................ $53.88 $50.00
Padding (carbonless) ............................................................................ $54.42 $50.00
STANDARD MARK-UP PRACTICES
Breakout By Sales $1.4 MIL -$7 MIL
MARK-UP PRACTICES ON LARGER JOBS PERCENT
We rely on Computer ..............................................................................................................21.6%
We rely on Manual Mark-ups .................................................................................................64.7%
Owner tends to Handle Mark-ups .........................................................................................13.7%
Section II - Breakouts by Sales 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 44 – All Rights Reserved
STANDARD MARK-UP PRACTICES
Breakout By Sales $300-$550,000
SUB-CONTRACTED SERVICES - MARK-UP PRACTICES BASED UPON COSTS
AVERAGE AVERAGE MARK-UP % SELLING PRICE
Your Cost $100 ..................................................................................... 107% $207
Your Cost $250 ....................................................................................... 92% $479
Your Cost $500 ....................................................................................... 79% $896
Your Cost $1,000 .................................................................................... 66% $1,661
Your Cost $2,500 .................................................................................... 56% $3,902
Your Cost $5,000 .................................................................................... 47% $7,336
MEDIAN MEDIAN MARK-UP % SELLING PRICE
Your Cost $100 ..................................................................................... 100% $200
Your Cost $250 ..................................................................................... 100% $500
Your Cost $500 ....................................................................................... 80% $900
Your Cost $1,000 .................................................................................... 67% $1,669
Your Cost $2,500 .................................................................................... 52% $3,800
Your Cost $5,000 .................................................................................... 50% $7,500
SUB-CONTRACTED SERVICES - MARK-UP PRACTICES BASED UPON COSTS
2017 Survey - Hourly Rates & Mark-Up Practices Report Section II - Breakouts by Sales
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 45 – All Rights Reserved
STANDARD MARK-UP PRACTICES
Breakout By Sales $1.4 MIL -$7 MIL
SUB-CONTRACTED SERVICES - MARK-UP PRACTICES BASED UPON COSTS
AVERAGE AVERAGE MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 89% $189
Your Cost $250 ....................................................................................... 74% $436
Your Cost $500 ....................................................................................... 64% $822
Your Cost $1,000 .................................................................................... 57% $1,573
Your Cost $2,500 .................................................................................... 47% $3,675
Your Cost $5,000 .................................................................................... 43% $7,172
MEDIAN MEDIAN MARK-UP % SELLING PRICE
Your Cost $100 ..................................................................................... 100% $200
Your Cost $250 ....................................................................................... 67% $417
Your Cost $500 ....................................................................................... 60% $800
Your Cost $1,000 .................................................................................... 50% $1,500
Your Cost $2,500 .................................................................................... 50% $3,750
Your Cost $5,000 .................................................................................... 42% $7,100
Section II - Breakouts by Sales 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 46 – All Rights Reserved
STANDARD MARK-UP PRACTICES
Breakout By Sales $300-$550,000
PAPER MARK-UP PRACTICES - MARK-UP PRACTICES BASED UPON COSTS
AVERAGE AVERAGE MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 85% $185
Your Cost $250 ....................................................................................... 75% $437
Your Cost $500 ....................................................................................... 69% $844
Your Cost $1,000 .................................................................................... 59% $1,594
Your Cost $2,500 .................................................................................... 54% $3,857
MEDIAN MEDIAN MARK-UP % SELLING PRICE
Your Cost $100 ..................................................................................... 100% $200
Your Cost $250 ..................................................................................... 100% $500
Your Cost $500 ....................................................................................... 80% $900
Your Cost $1,000 .................................................................................... 67% $1,669
Your Cost $2,500 .................................................................................... 52% $3,800
2017 Survey - Hourly Rates & Mark-Up Practices Report Section II - Breakouts by Sales
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 47 – All Rights Reserved
STANDARD MARK-UP PRACTICES
Breakout By Sales $1.4 MIL -$7 MIL
PAPER MARK-UP PRACTICES - MARK-UP PRACTICES BASED UPON COSTS
AVERAGE AVERAGE MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 70% $170
Your Cost $250 ....................................................................................... 65% $414
Your Cost $500 ....................................................................................... 62% $808
Your Cost $1,000 .................................................................................... 55% $1,555
Your Cost $2,500 .................................................................................... 48% $3,704
MEDIAN MEDIAN MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 50% $150
Your Cost $250 ....................................................................................... 50% $375
Your Cost $500 ....................................................................................... 50% $750
Your Cost $1,000 .................................................................................... 50% $1,500
Your Cost $2,500 .................................................................................... 45% $3,613
Section II - Breakouts by Sales 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 48 – All Rights Reserved
12%
23%
64%6 3%60%
39%
19%
4% 8% 4%
0.0%
15.0%
30.0%
45.0%
60.0%
75.0%
SECTION IIIBreakouts
by SPEn SPE BOTTOM QRTL <=109,999
n SPE TOP QRTL >=$150,000
The purpose of the breakout parameters noted above, is to allow readers to quickly compare
(viewing facing pages) the differences in markup practices for hand labor and general
mark-up practices when participants are analyzed based upon either “sales” or “SPE.”
Section III - Breakouts by SPE 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 50 – All Rights Reserved
HOURLY RATES/SPECIFIC CHARGES
SPE BOTTOM QRTL <=109,999
HOW HAND LABOR IS TYPICALLY CHARGED PERCENT
By the pick-up or piece ..........................................................................................................34.1%
By the estimated time involved ............................................................................................65.9%
SPECIFIC CHARGES AVERAGE MEDIAN
Minimum charge for hand-labor .......................................................... $13.46 $10.00
Hourly Charge ........................................................................................ $41.51 $40.00
Charge per pick-up ................................................................................ $0.079 $0.050
TYPICAL CHARGES GRAPHIC SERVICES AVERAGE MEDIAN
Basic Graphics - Hourly Charge ........................................................... $67.15 $71.00
Complex Graphics - Hourly Charge ..................................................... $81.30 $75.00
Advanced Graphics - Hourly Charge ................................................... $99.07 $92.50
2017 Survey - Hourly Rates & Mark-Up Practices Report Section III - Breakouts by SPE
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 51 – All Rights Reserved
HOURLY RATES/SPECIFIC CHARGES
SPE TOP QRTL >=$150,000
HOW HAND LABOR IS TYPICALLY CHARGED PERCENT
By the pick-up or piece ..........................................................................................................23.6%
By the estimated time involved ............................................................................................76.4%
SPECIFIC CHARGES AVERAGE MEDIAN
Minimum charge for hand-labor .......................................................... $20.35 $20.00
Hourly Charge ........................................................................................ $50.57 $46.50
Charge per pick-up ................................................................................ $0.108 $0.100
TYPICAL CHARGES GRAPHIC SERVICES AVERAGE MEDIAN
Basic Graphics - Hourly Charge ........................................................... $71.32 $72.50
Complex Graphics - Hourly Charge ..................................................... $82.30 $80.00
Advanced Graphics - Hourly Charge ................................................. $103.23 $95.00
Section III - Breakouts by SPE 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 52 – All Rights Reserved
HOURLY CHARGES FOR SPECIFIC FUNCTIONS
AVERAGE MEDIAN
Cutting ..................................................................................................... $49.97 $49.50
Folding (straight) ................................................................................... $48.87 $50.00
Folding (side-gate) ................................................................................. $51.50 $50.00
Hand gathering ....................................................................................... $42.31 $40.00
Machine collating................................................................................... $47.41 $45.50
2/3 hole drilling ...................................................................................... $46.17 $45.00
GBC/Wire-O ............................................................................................. $48.12 $50.00
Laminating .............................................................................................. $51.70 $45.00
Numbering/perfing ................................................................................ $49.14 $50.00
Padding (standard) ................................................................................ $44.09 $42.50
Padding (carbonless) ............................................................................ $45.15 $45.00
STANDARD MARK-UP PRACTICES
SPE BOTTOM QRTL <=109,999
MARK-UP PRACTICES ON LARGER JOBS PERCENT
We rely on Computer ..............................................................................................................18.6%
We rely on Manual Mark-ups .................................................................................................48.8%
Owner tends to Handle Mark-ups .........................................................................................32.6%
HOURLY RATES/SPECIFIC CHARGES
SPE BOTTOM QRTL <=109,999
2017 Survey - Hourly Rates & Mark-Up Practices Report Section III - Breakouts by SPE
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 53 – All Rights Reserved
HOURLY CHARGES FOR SPECIFIC FUNCTIONS
AVERAGE MEDIAN
Cutting ..................................................................................................... $58.51 $60.00
Folding (straight) ................................................................................... $57.83 $55.00
Folding (side-gate) ................................................................................. $59.52 $57.50
Hand gathering ....................................................................................... $49.75 $50.00
Machine collating................................................................................... $56.98 $50.00
2/3 hole drilling ...................................................................................... $54.59 $52.50
GBC/Wire-O ............................................................................................. $55.34 $50.00
Laminating .............................................................................................. $55.94 $50.00
Numbering/perfing ................................................................................ $58.13 $60.00
Padding (standard) ................................................................................ $52.40 $50.00
Padding (carbonless) ............................................................................ $52.23 $50.00
STANDARD MARK-UP PRACTICES
SPE TOP QRTL >=$150,000
MARK-UP PRACTICES ON LARGER JOBS PERCENT
We rely on Computer ..............................................................................................................11.1%
We rely on Manual Mark-ups .................................................................................................69.4%
Owner tends to Handle Mark-ups .........................................................................................19.4%
HOURLY RATES/SPECIFIC CHARGES
SPE TOP QRTL >=$150,000
Section III - Breakouts by SPE 2017 Survey - Hourly Rates & Mark-Up Practices Report
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STANDARD MARK-UP PRACTICES
SPE BOTTOM QRTL <=109,999
SUB-CONTRACTED SERVICES - MARK-UP PRACTICES BASED UPON COSTS
AVERAGE AVERAGE MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 97% $197
Your Cost $250 ....................................................................................... 86% $464
Your Cost $500 ....................................................................................... 73% $866
Your Cost $1,000 .................................................................................... 63% $1,626
Your Cost $2,500 .................................................................................... 53% $3,817
Your Cost $5,000 .................................................................................... 45% $7,258
MEDIAN MEDIAN MARK-UP % SELLING PRICE
Your Cost $100 ..................................................................................... 100% $200
Your Cost $250 ..................................................................................... 100% $500
Your Cost $500 ....................................................................................... 75% $875
Your Cost $1,000 .................................................................................... 65% $1,650
Your Cost $2,500 .................................................................................... 50% $3,750
Your Cost $5,000 .................................................................................... 43% $7,150
2017 Survey - Hourly Rates & Mark-Up Practices Report Section III - Breakouts by SPE
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STANDARD MARK-UP PRACTICES
SPE TOP QRTL >=$150,000
SUB-CONTRACTED SERVICES - MARK-UP PRACTICES BASED UPON COSTS
AVERAGE AVERAGE MARK-UP % SELLING PRICE
Your Cost $100 ..................................................................................... 104% $204
Your Cost $250 ....................................................................................... 87% $467
Your Cost $500 ....................................................................................... 76% $882
Your Cost $1,000 .................................................................................... 65% $1,649
Your Cost $2,500 .................................................................................... 56% $3,899
Your Cost $5,000 .................................................................................... 48% $7,383
MEDIAN MEDIAN MARK-UP % SELLING PRICE
Your Cost $100 ..................................................................................... 100% $200
Your Cost $250 ..................................................................................... 100% $500
Your Cost $500 ....................................................................................... 77% $885
Your Cost $1,000 .................................................................................... 66% $1,658
Your Cost $2,500 .................................................................................... 52% $3,800
Your Cost $5,000 .................................................................................... 48% $7,375
Section III - Breakouts by SPE 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 56 – All Rights Reserved
STANDARD MARK-UP PRACTICES
SPE BOTTOM QRTL <=109,999
PAPER MARK-UP PRACTICES - MARK-UP PRACTICES BASED UPON COSTS
AVERAGE AVERAGE MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 64% $164
Your Cost $250 ....................................................................................... 61% $402
Your Cost $500 ....................................................................................... 58% $792
Your Cost $1,000 .................................................................................... 52% $1,520
Your Cost $2,500 .................................................................................... 50% $3,743
MEDIAN MEDIAN MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 53% $153
Your Cost $250 ....................................................................................... 53% $381
Your Cost $500 ....................................................................................... 50% $750
Your Cost $1,000 .................................................................................... 50% $1,500
Your Cost $2,500 .................................................................................... 40% $3,500
2017 Survey - Hourly Rates & Mark-Up Practices Report Section III - Breakouts by SPE
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 57 – All Rights Reserved
STANDARD MARK-UP PRACTICES
SPE TOP QRTL >=$150,000
PAPER MARK-UP PRACTICES - MARK-UP PRACTICES BASED UPON COSTS
AVERAGE AVERAGE MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 75% $175
Your Cost $250 ....................................................................................... 68% $421
Your Cost $500 ....................................................................................... 65% $826
Your Cost $1,000 .................................................................................... 58% $1,581
Your Cost $2,500 .................................................................................... 51% $3,769
MEDIAN MEDIAN MARK-UP % SELLING PRICE
Your Cost $100 ....................................................................................... 67% $167
Your Cost $250 ....................................................................................... 60% $400
Your Cost $500 ....................................................................................... 60% $800
Your Cost $1,000 .................................................................................... 50% $1,500
Your Cost $2,500 .................................................................................... 50% $3,750
Section III - Breakouts by SPE 2017 Survey - Hourly Rates & Mark-Up Practices Report
Published by National Printing Copyright © 2017 (NPRC)Research Council (NPRC) – 58 – All Rights Reserved
THE 2017 SURVEY OF HOURLY RATES &MARK-UP PRACTICES REPORT
PLEASE GIVE US YOUR FEEDBACK - IT REALLY COUNTS!Thank you for participating in this year’s 2017 Survey of Hourly Rates & Mark-up Practices Report. Please use this reply sheet to let us know what you think. We hope you enjoy and benefit from the information contained in the enclosed report. After you’ve had a chance to review its con-tents, we would really appreciate your overall evaluation. We would also appreciate your sugges-tions regarding questions in future studies/reports, as well as any special interests you may have.
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