How to request and evaluate printing quotations

How much does it cost me? The quotation is crucial in the entire production process of a printed product - now more than ever, given the economic uncertainty. However, cost analysis should not be the only element of evaluation: here are some valuable tips on turning this phase into a moment of study and planning, finding together with the printer the most suitable and convenient solutions for our project.

By Lorenzo Capitani | On PRINTlovers 95

The moment of the quote represents one of the crucial phases of the entire production process of a printed object. It should not be limited to the mere collection and analysis of costs and, consequently, to the decision of whether or not to assign a job to a particular printer; it should be understood more broadly and constructively as a genuine moment of studying and designing what we want to produce. 
This is even more true at a time of uncertainty, such as the present, when raw materials and industrial costs are rising in an uncontrolled and unpredictable manner, and attention to economic balance is often the first thought. Yet, precisely because costs are decisive, as well as the need to keep objectives, margins and results under control, we should move away from the short-sighted logic of customer/supplier. We should see the printer, not as a mere supplier of a service to whom we place an order and give a delivery deadline but instead as a partner to turn our creative ideas into reality, finding together the most suitable and convenient solutions.

Having clear ideas

Talking to printers, the landscape of print buyers often looks bleak. Very often, we simply send a more or less well-done specification describing what we want to print, usually close to the closing date for the pdfs, asking for timescales that are often barely sustainable, as if printers were working at infinite capacity with all the paper in the house and we were the only ones who wanted to have a job printed. Other times, which is even worse these days, when jobs are routine, they try to close (I should say impose) framework agreements that last all year round but do not take into account the fluidity of energy and raw material costs. Proof that we reason in watertight compartments: the print buyer is satisfied with costs sheltered behind fixed price lists, and the printer works at a loss, forced to honour what they have signed. But it is not just a question of costs, as much as trying to work well, in the broadest sense of the term and on both sides. Buying well is not just about getting the lowest price by asking for a discount on the total written at the bottom of the quote; it is about finding the right printer at the right time for the job that needs to be printed. Considering the printer simply as the transformer of pdfs into printed paper, at best, forces them to work by approximation, to keep overly cautious contingencies because they will be asked for a discount anyway, or to work at cost or below. In short, there are two of the most common mistakes: not realising that good printed matter comes into being before it becomes an order and that the quotation phase is crucial in determining the success of a job. Because the estimate is not only the printer's business but also of the buyer who has to build it with them, having a clear idea of what they want to achieve and knowing how to assess the correctness of the requested cost.

Drawing up a good specification

Before even asking who to send the request for an estimate to, it is necessary to draw up a suitable specification that describes clearly and in detail the characteristics of the printed object without omitting or taking anything for granted. First, let's give our work a title that briefly describes what is required: "Pinocchio" hardback volume, S/S 2023 fashion show invitation with envelope, 24-page flyer Christmas Offers 2022... This is used to classify the quote, open the possible order, and use a shared reference. We report the closed and open format, if common to the entire print – otherwise, it must be declared part by part - in centimetres according to the base x height unit notation (FTO closed 21x28.7 cm, FTO open 42x28.7 cm), and we give the quotation a well-defined structure, dividing it into its individual parts. Starting with the cover (or dust jacket if provided), we state the number of printing colours of each side, according to the notation 4+4 if in colour or 1+1 if the work is one colour, also making the colour explicit. If there are particular colours, they must be declared (4+4 + Pantone Blue Reflex). Then we move on to the paper: if generic, we report the finish required (Glossy Coated 300 g), i.e. the exact name of the paper mill and paper, specifying the grammage and the FSC indication, if it has to be certified. Finally, any other processing is indicated: from the type of coating or plastic up to finishing, such as embossing, die-cutting or hot stamping, in this case too, with the indication of the ribbon to be used. 

The same detail should also be reserved for the interiors, of which the number of pages and any eccentric book-binding signatures such as hinged or shorter pages should be reported. For this, it is also essential to report the open format or different sizes. In the case of shorter signatures or tabs, for example, whether they are balanced at the head or the foot must be indicated. Other ancillary parts to the main printed matter must also be described: this is the case, for instance, of a possible volume slipcase, a wrapper, a bookmark or, in the case of an invitation, the envelope. Here too, the number of printing colours, the type of paper and the indication of a varnish and what kind - meaning not only the finish but also the covering - must not be missing because in the case of a glossy varnish in register, only on images, for example, this must be made very clear. This is because it will determine not only a cost but also the feasibility within the supplier's machine park and the verification of the installations when the pdfs are supplied. Obviously, the finishing and how the parts are to be assembled must be specified: if, for example, the bookmark is to be in a precise or random spot or if the invitation is to be bagged. Each part has its processing, and each processing has a cost. If not machinable, a postcard placed in a precise spot in a catalogue implies time to find manually, copy by copy, that precise spot.
The packaging part is also decisive because the shape of the printed matter depends on it. By packaging, we mean not only the classic staples, milled or stitched paperbacks (with the colour of the staples or thread if not the usual ones used) and hardbacks with the thickness of the cardboard and the type of spine (round or square), but also different bindings from the simple free overlapping of the daily style signatures to the glued wire, to all those artistic bindings such as the Bodonian, Swiss, Japanese etc., with all the details such as endpapers (printed or not and on what type of paper), the presence of capitals and bookmarks and their colour. The kind of folding of flyers, brochures or leaflets, cutting of cards or die-cutting must also be described here with measurements if they are different. This level of detail is just as necessary if you want to produce a complex printed object such as a hardback book with a top cover as for a die-cut sticker or a business card.

Finally, indications must also be given as to the type of packaging required, which must be taken into account when determining costs: single-copy cellophane has a different price and timing compared to a multi-copy thermo pack, as does the return in boxes, especially if these must be made ad hoc in terms of format, printing or labelling. And delivery should not be underestimated, not so much because of the timing, which in any case has a cost, but because of the accompanying requirements: from the boxes to the type of pallet (EUR, fumigated) to the fact that it must be delivered in restricted traffic areas of the city or without a forklift for unloading.

Circumscribing the supplier base

Before being sent for quotation, the draft of the specifications should be discussed with the supplier so there are no misunderstandings and so that it is not discovered late that something is not feasible because it overruns the budget. Similarly, it must also be shared internally. Most of the time, those in charge of production, and who therefore talk to the printers, are not also in charge of graphic design or creativity. And everyone involved in the project must clearly understand the opportunities, critical issues, limitations and economic weight of the technologies, processes, materials and finishing. It would be like an architect needing to learn the differences between PVC or wooden frames and single or double glazing. Sometimes a slight modification can change the cost. For example, a 14x24 cm flat milled volume requires 72x102 paper, which, net of assets, could cost more than the 70x100. It would therefore be enough to go down to the 13.5x23.5 cm.

Based on this specification, the printer will finally be able to start their evaluations and thus work out the cost of supply. But who should I ask for an estimate if I do not know which technology best suits my project? That is why it is good to take the time to compare quotes and once again talk to the printer. To a certain extent, it will also be our experience and technical knowledge as print buyers that will make the difference and show us the correct approach. Many companies, however, outsource all production directly to the supplier and do not have in-house technical staff. While it is true that there are printers who have almost all the technologies from roto offset to flatbed to digital printing and can address and budget accordingly, it is equally valid that the reality of the market is made up of printers with at most two technologies, who then, in turn, have a network of sub-suppliers to rely on when they cannot do a job. Apparently, it works, but there is a markup and risk on the final quality control at each step. The schizophrenic reality of the current market and supply conditions makes the scenario even more complex because certainties that were clear-cut a while ago are no longer so. We think of digital as an alternative to offset: the common view is that below 500 copies, it is better to go digital; above that, at least up to 5000. But technology runs fast, and, having said that, it all depends on the type of print; today, it is true that digital has come to compete with offset, but it is equally valid that flatbed, under certain conditions, competes with digital even at very low print runs. An example: 1,000 copies of a 120-page 12x19.5 cm volume printed in 4+4 colours on 80 gsm hand-coated paper with cover printed in 4+0 colours on 300 gsm glossy coated paper with glossy lamination might cost less in offset than in digital, which is not true for 300 copies of a slightly larger volume (17x24 cm) - the same characteristics with the added UV glossy in register on the cover. It may be said: the longer the print run, the more the fixed costs are spread out. This is true up to a point, and the right choice, to be impartial, depends on the print run and our printing habits. If our jobs are periodicals, they almost always have the same characteristics, and more or less constant print runs; our pool of suppliers will be more or less fixed because time and experience will have selected the most suitable ones: at least, we will scout to see if there is any new player. In this case, we could make ourselves almost autonomous in calculating costs based on price lists or calculators that many printers make available to their regular customers. At most, at the time of the order, a tweak given by the raw material costs may shift the cost slightly. There are cases where you get to genuine Print on Demand, such as the one offered by the PODRotomail portal or Lampi di Stampa for book printing, where you upload your library of pdfs, and as they are needed, you activate the printing, effectively cancelling the stock. Checking pdfs, costs and times are under control, and you can go as far as a single copy. In short, for simple jobs, with simple technology, the software allows immediate quotation; for more sophisticated jobs, you need that level of precision only an expert in quoting can guarantee.

The right technology at the right price

The matter changes if we have a large and heterogeneous production. Then it makes sense to have a supplier base divided by job type or turn to print brokers who act as intermediaries. There is indeed an extra step, but their supplier base is usually vast, and they look for the best solution for each job they are given. Today, defining a priori which technology is the most suitable is only easy for very specific types of printed matter: a large-scale retail flyer with thousands of copies is certainly roto, but already for an art book, the flatbed, which used to be an unquestionable choice, is competitive, especially in terms of quality, with digital. That is when knowing the potential of the suppliers' number of machines becomes essential. Then the job characteristics come into play, such as the paper: certainly, 200 g roto will not pass, just as you cannot do a cold foil.

Once you have identified the panel of suppliers to ask for a price, it is a good idea to have a clear picture of the cost. The most important thing for making comparisons and thus being able to choose is to have a uniform cost, usually expressed in euros per copy. Shipping would also be worth having separately so that printing and packaging costs are transparent. Every printout has fixed and variable costs. Fixed are the costs of dies and starting-up process for any type of processing that requires them, but in digital, they are marginal or negligible; indeed, unlike offset, beyond specific print runs, the cost increases differently. Break-even changes from machine to machine. An example for all: two flatbed presses with the same format that have to print the same job might have different fixed costs depending on their age or the technologies on board to speed up starting-up processes or inking setups.

But how do you calculate the cost of a print job? Simplifying as much as possible, we start with the job setup based on printing and packaging requirements, then the number of bookbinding signatures that determines the number of starting-up processes and consequently the number of stencils (including ripping, scripts and materials). Next, we consider the press revolutions (which depend on the cost of the production line), paper and other raw materials, ink coverage, printing waste, book-binding and further processing included, and the binding starting-up process and cost per copy for the required packaging, and finally, packaging. Obviously, if special processing is envisaged, other start-up costs, die costs (e.g. plates for hot stamping), transfer costs (including waste) and transfer costs, if that processing is anticipated by a subcontractor, will be added. A sales markup must be added to the total industrial costs, the only factor the printer can influence when asked for a discount. All this is divided by the print run on which all variable costs depend and which tends to decrease fixed costs because they are spread over the number of copies.

As you can see, the cost items are clear; today, the values fluctuate depending on the market. Either the fluctuations are negligible, or the industrial cost will erode the printer's margin in the event of increases. Today, even getting an estimate in-house before contacting suppliers can make sense to get a rough idea of costs, but nothing more. Printers periodically update their costs and price lists, but you, unless you do the same with a limited pool of suppliers, will end up with unrealistic quotations - without forgetting that a quote has a deadline precisely because of the market's liquidity. It is acceptable to take the time to gather ideas and make evaluations, but do not assume that the price they sent you last year is still valid this year. Just as you don't assume that the substrates you have imagined using will be available immediately, especially paper. Another trend that has changed a lot over time is the direct purchase of paper by the customer. Apart from warehousing costs and the need to manage orders to paper mills, the savings prove illusory as the bargaining power is directly proportional to the volumes purchased, and inevitably the printer will obtain more favourable prices.

The quotation
After waiting a few days, we finally get our quote. We will undoubtedly find the description of the work required, which should reflect our specifications with possible adjustments based on the offer's feasibility, price and validity. But what does the quoted cost include? Obviously, the printout requested plus a whole series of ancillary services focussed on production, from receipt of files and production of blueprints (digital or hard copy) for print approval to the technical control of pdfs; the possibility of being present at start-up when the quality of the printout requires it but excluding work to make the delivered materials printable; remakes requested by the customer and contractual colour proofs, which are the customer’s responsibility and must be provided by them, in line with ISO 12647-7 (see document TAGA.DOC.05). Anything not specified is excluded, except for machine downtimes, faults and breakages, which remain the printer’s responsibility. A clear definition of the supply regulations is contained in the document TAGA.DOC.18 "Clauses and regulations of the graphics sector", which can be easily found on the web and is a reference for those who directly or indirectly operate in the graphics sector. The document not only defines the perimeter of quotations and orders but also defines actors and flows, lists reference standards, and regulates quality tolerances and rejects.

Finally, the crucial question: how can you tell if the price provided is right? Basically, by comparing different quotes. That is why asking more than one supplier for a price is helpful: questioning the market is always the most beneficial strategy. To get the best price, certainly, but also to widen the pool of suppliers and learn how they move commercially. Inevitably differences will arise, and you should refrain from deluding yourself into thinking that you are getting the correct quote beforehand. It is a bit like going to buy a car: you compare the different offers from the various dealers, but you do not discuss the vehicle's value. With experience, you can build up a target price to get an idea.


A word with the printer

Three questions to Franco Mussa, Sales Executive of Logo, a Veneto-based company that has been active in numerous sectors since 1998: from publishing to manufacturing, from fashion to large-scale retail trade, from food & beverage to cosmetics, from pharmaceuticals to furnishings, with offset, digital and paper printing and packaging technologies.

With an extensive number of machines, how do you choose the right technology to offer the right price to the customer?
In the quotation phase, we ask for the specification of production to be carried out. From there, we choose the appropriate technology according to the required quality, opting for the best price. It is the type of printed matter that drives the choice.

What is the biggest expense item in the cost of a print? 
There are many expense items, from paper and labour to indirect costs (electricity, transport). Certainly, the rising costs of raw materials and energy are also affecting printing costs. Unfortunately, not only electricity and gas have risen sharply today but all raw materials. The customer knows this and is, in turn, looking for sustainable solutions. The problem is that the printer is in the middle and can only absorb these price increases with long-term consequences.

How has the market changed in recent years?
The market has shifted dramatically, especially in terms of print runs, making it increasingly necessary to move towards digital printing, which offers greater flexibility without stock. Which does a service for the customer who orders just in time. On our side, though, to be competitive and, above all, to have the raw materials, we have to return to a stock logic.