OT : Should I mark up DVD reproduction

goodtimej wrote on 8/20/2007, 1:17 PM

I have a job that I am going to have to get 500 DVDs made for. I will be doing all the case and disc design, but I am farming out the reproduction to another company. Say these are going to cost me 2 dollars a piece, full case and all. Should I mark this up or just give the same price to the customer?
How much if I should mark it up, like a dollar extra?

Comments

Dan Sherman wrote on 8/20/2007, 1:28 PM

Depends if you want to make a profit or not.
For a run of 5 hundred DVD you should be able to get a jobber to print the insert and and top, do the packaging and shrink wrap along with the duplication for around 2 dollars a unit.
Shop around.
Try Duplium.
You can mark it up as much as you want.

goodtimej wrote on 8/20/2007, 1:34 PM

I know that i can, but is that what is generally done?
I want to of course make money, but I would also like to be competitively priced.
Thanks

Coursedesign wrote on 8/20/2007, 2:00 PM

It is customary and makes business sense to mark up any third-party services or products. The markup has to cover your administrative costs of dealing with the vendor, which includes research, specification, ordering, invoice payment, etc. etc.

Such admin. costs virtually always exceed 15-20%, even in the most efficient organizations, and it is not wrong to add a good margin on top of that.

CClub wrote on 8/20/2007, 6:08 PM

I don't farm that work out that much, as I usually give it back to the customer to set up themselves because it's cheaper for them to do it. But if the agreement is that I work out the arrangements of getting the copies made by a 3rd party, I know how long that takes me in hours, and I charge by the hour for that.

It really doesn't take me longer if I'm setting up for 300 copies or 1000 so I view it as more fair that way to both the customer and myself. Fair to me, because if they only want 50 copies, it takes me almost as long as setting up for 500 copies, and if I'm only getting $1/each, I get ripped off. It's NOT a quick process in making these arrangements (graphics uploaded or mailed, etc.), and I'm certainly not spending that time for free.

richard-courtney wrote on 8/20/2007, 6:46 PM

Not bad price each. Cdtechnical replicates 500 DVD-5 4 color silkscreen,
with wrap sheet, insert (chapter list), and shrink wrap for around $2.84 each.

I would set your price for:
DVD encoding (hourly use of DVDA for menu design)
Design of wrap sheet (hourly to make the outside paper)
Fee for Master files or markup per disc (popular content might make more
profit per disc)

Keep in mind you also need to prove you have clearances for music
and logos (such as Dolby Digital)

rmack350 wrote on 8/20/2007, 8:04 PM

Got an accountant? You might want to check to see if you need to charge sales tax when you mark up goods.

We generally just pass through these expenses without markup. We are charging for services, not goods.

Rob Mack

Dach wrote on 8/21/2007, 7:39 AM

Keep in mind when using a third party vendor who needs to ship the product to you... there is the shipping expense. This will add to your per unit cost.

Chad

CVM wrote on 8/21/2007, 8:25 AM

I've worked for ad agencies, private video production firms, and myself... the standard mark-up I've always used is 17.65%. Mark up everything... product, shipping, all your costs.

Remember, if you are not charging an hourly rate to 'handle' the deliverables, then you should mark-up. Why do anything for free?(within reason).

Every minute of your time is worth $$$. You are a business, charge like one (don't forget to throw in a little value add, though)

Jay Gladwell wrote on 8/21/2007, 8:53 AM

Yes, time is money. My time is worth $X per hour, no matter what I'm doing, that's the charge.