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DIGITAL DECORATING
How to Keep Cutter Material Costs DownOrder cutter material in bulk to save thousands.Oct 10, 2008
As rising gasoline prices increase freight costs and with the uncertain state of the economy, everyone is looking for ways to save. Leveraging pricing when purchasing cutter materials is one way to cut costs. Brands of material can have a cost difference of $1 to $2 per yard depending on the roll size ordered. Another factor that comes into play is the cost of freight. Below is an example of how you can save money by choosing one supplier and buying primary colors in bulk. Customer X just invested in a vinyl cutter one year ago. He’s doing well and has secured jobs with various teams and businesses. Here is his purchase history of white heat-transfer vinyl for various jobs over a three-month period: Jan. 12th: 10 yards of white at $6.75 per yard plus $13 in freight = $80.50 Jan. 20th: 5 yards of white at $7 per yard plus $12 in freight =$47 Feb. 1st: 25 yards of white at $6.25 per yard plus $14 in freight = $170.25 Feb. 7th: 10 yards of white at $6.75 per yard plus $13 in freight = $80.50 Feb. 19th: 15 yards of white at $6.75 per yard plus $13 in freight = $114.25 Feb. 27th: 50 yards of white at $5.75 per yard plus $15 in freight = $302.50 March 3rd: 10 yards of white at $6.75 per yard plus $13 in freight = $80.50 March 15th: 10 yards of white at $6.75 per yard plus $13 in freight = $80.50 March 24th: 30 yards of white at $6.25 per yard plus $35 in freight for rush = $222.50 Total yards of white vinyl purchased at the end of three months = 165 Total amount paid to vendor = $1,178.50 If Customer X purchased 200 yards of white vinyl at the beginning of January, he would have paid $948.75 plus $25 in shipping for a total of $974, saving $204.50 and leaving him 35 yards left over. If you factor similar savings in purchasing seven other core colors, he could save $1,300 in three months for a total savings of more than $5,000 this year. Get the point? Of course, you don’t want to overstock in odd colors like cream and taupe, so identify your top sellers and stock up. According to our sales records, white, black and red are the top sellers with navy, royal blue and yellow or athletic gold coming in second. Take into account your demographic area as well. If a target market is females, then think about stocking pink. Also, consider local school colors and corporate colors. Another other benefit to stocking up is you have it when you need it. There’s no making the customer wait until a roll comes in and there’s no wasteful rush charges. I can’t begin to assign a value to that. Josh Ellsworth is an account representative with Imprintables Warehouse, a full-line supplier of heat-applied cutter materials, cutters, transfer papers and heat presses. For more useful tips and techniques like this one, subscribe to Josh’s blog at joshellsworth.com. RECENT DIGITAL DECORATING HEADLINES
Shining Stars
The decorated apparel industry, despite substantial challenges in the U.S. economy, is alive and…well, we could be doing better. Wall Street — and the economy in general — are on a wild roller coaster as the credit crunch continues and decorated apparel is not exempt. While no one can predict the future with certainty, this survey-based analysis suggests we'll be along for the ride, but perhaps on a smaller coaster that doesn't rise as high or plunge as fast as the monster whipsawing the rest of the U.S. economy. December 01, 2008
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