Are you always losing money on screen printing quotes? Keep this cost accounting formula handy.

For those of you who own screen printing businesses, have you ever had this experience: you've received numerous orders, keeping you incredibly busy, but at the end of the year, you find you haven't made any money? The problem most likely lies in your pricing—you've only included ink and labor costs, omitting hidden costs such as screen printing plates, waste, and equipment depreciation. Today, let's talk about how to calculate screen printing costs and how to quote prices that won't result in losses

The core of screen printing pricing is "cost per piece × quantity + plate making fee + profit," but many people can't calculate the cost per piece accurately, either omitting items or underestimating it. Our factory used to rely entirely on experience for pricing. Once, we received a large order, and after calculating, we only made 2 cents profit per piece, almost losing money. Later, we established a standard cost accounting sheet, which greatly improved the accuracy of our pricing.

Screen printing costs are not just about ink; they also include screen production, squeegee wear and tear, electricity consumption, equipment depreciation, factory rent, and losses from defective products—each item must be factored in. Missing any one item reduces profits.

Practical tips

1. Direct cost per unit : Ink cost (ink consumption per unit × ink unit price) + substrate cost + labor cost (labor hours per unit × hourly wage) + water and electricity consumption. Ink consumption can be estimated using "full-page area × ink layer thickness × ink density", generally 0.5-2g/unit for small items.

2. Screen Making Fee : Screen making fee (screen mesh + frame + photosensitive emulsion + labor), approximately 30-80 yuan per color per screen, multi-color screens are charged according to the number of colors. Should the screen making fee be charged separately or included in the unit price? Small batches (<500 pieces) are charged separately, large batches (>2000 pieces) can be included in the unit price.

3. Indirect costs : Equipment depreciation (total equipment price ÷ useful life ÷ annual production capacity) + amortized factory rent + management fees + transportation and packaging. This part is easily overlooked, but it usually accounts for 15%-25% of the total cost.

4. Loss Rate : The normal loss rate for screen printing is 3%-8%, and the loss rate for trial production of new materials and processes can reach 10%-15%. When quoting a price, calculate the required production quantity based on "actual quantity ÷ (1 - loss rate)", not just the amount the customer orders.

5. Quotation Formula : Quoted Unit Price = (Direct Cost + Indirect Cost) × (1 + Loss Rate) × (1 + Profit Margin). Profit margin is generally 15%-30%. Higher values are used for small batches, rush orders, and multi-color printing; lower values are used for large batches and long-term clients.

6. Pricing Techniques : Tiered pricing – the larger the quantity, the lower the unit price, encouraging customers to increase orders; rush orders incur an extra fee (1.5-2 times the normal delivery time); sample fees are charged separately (refundable for bulk orders); for multi-color printing, each additional color adds 20%-40% to the price.

#Screenprinting #ScreenprintingQuotes #CostCalculation #ScreenprintingTutorials #PrintingProcesses #ScreenprintingStartup #PrintingEquipment #ScreenprintingTips