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A subtle reminder from wizards.(or not so subtle)
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<blockquote data-quote="Herschel" data-source="post: 5264518" data-attributes="member: 78357"><p>I think you forget how wholesaling is priced and done. It's all about volume.</p><p> </p><p>Printing a book, screen printing a t-shirt, etc. isn't a set cost. There are set up costs regardless of the numbers printed. But one the set up is done, generally materials cost less based on volume because of the way set up costs are dispersed. </p><p> </p><p>Say it costs $1,000 to set up a book printing. If you want 100 books printed you may be charged $10/book on top of that while it may only cost them $4 to print it. This is the printer's profit margin because they have to have the people, time and machines (including purchase AND upkeep) in order to do the job. So it would cost you $20/book to have them printed but would only cost you $2000 to get that print run done. </p><p> </p><p>Depending on market research, you may only need 100 books printed, or you may be small or have a limited budget so that size run is all you can afford. When you turn a profit on your product you can afford another print run.</p><p> </p><p>Meanwhile the printer had to allocate the time/resources to set up that print run when it's faster just to be printing. So if you order 100,000 books you may be charged only $5/book. That print run costs you $500,000 but only about $5/book. </p><p> </p><p>The printer balances the "down time" of setting up jobs to print vs. printing time while taking in to account materials costs. He's likely also getting a discount on materials for ordering in bulk. Maybe his cost of printing is down to $3.75/book with volume supply discount. </p><p> </p><p>If he stands to make more money overall by spending more time actually printing, then the price/unit will be substantially less. If you have the need for 1,000,000 units, having them done in the fewest number of print jobs your budget can afford is best for your bottom line, even if you know the time to sell the entire 1,000,000 will be prolonged.</p><p> </p><p>So if WotC figured they needed 1,000,000 PHBs for a seven-year cycle and got the okay to do it all in one print run (by showing storage cost vs. volume discount, etc.) They can make another print run when they want/need to, but they have to plan the costs of doing so at different times/levels.</p></blockquote><p></p>
[QUOTE="Herschel, post: 5264518, member: 78357"] I think you forget how wholesaling is priced and done. It's all about volume. Printing a book, screen printing a t-shirt, etc. isn't a set cost. There are set up costs regardless of the numbers printed. But one the set up is done, generally materials cost less based on volume because of the way set up costs are dispersed. Say it costs $1,000 to set up a book printing. If you want 100 books printed you may be charged $10/book on top of that while it may only cost them $4 to print it. This is the printer's profit margin because they have to have the people, time and machines (including purchase AND upkeep) in order to do the job. So it would cost you $20/book to have them printed but would only cost you $2000 to get that print run done. Depending on market research, you may only need 100 books printed, or you may be small or have a limited budget so that size run is all you can afford. When you turn a profit on your product you can afford another print run. Meanwhile the printer had to allocate the time/resources to set up that print run when it's faster just to be printing. So if you order 100,000 books you may be charged only $5/book. That print run costs you $500,000 but only about $5/book. The printer balances the "down time" of setting up jobs to print vs. printing time while taking in to account materials costs. He's likely also getting a discount on materials for ordering in bulk. Maybe his cost of printing is down to $3.75/book with volume supply discount. If he stands to make more money overall by spending more time actually printing, then the price/unit will be substantially less. If you have the need for 1,000,000 units, having them done in the fewest number of print jobs your budget can afford is best for your bottom line, even if you know the time to sell the entire 1,000,000 will be prolonged. So if WotC figured they needed 1,000,000 PHBs for a seven-year cycle and got the okay to do it all in one print run (by showing storage cost vs. volume discount, etc.) They can make another print run when they want/need to, but they have to plan the costs of doing so at different times/levels. [/QUOTE]
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