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Does anyone own a printing business?

Discussion in 'BlackHat Lounge' started by rayee, Jul 13, 2014.

  1. rayee

    rayee Power Member

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    I am thinking of opening a printing business and the equipment are really expensive.

    Here's the list

    Fuji Xerox: $39,000


    Wide Format Printer: Estimated $8,000


    Slitter/Cutter/Creaser: $26,000


    Laminator: Est $1,000


    Stapling/Punch: Unknown


    Flash Stamp Machine: $2,600

    Total Cost: Est $80,000

    This was the list of equipment collated by various vendors and they certainly will have a bias when introducing it to me. I am serious about opening a Printing shop business and am wondering if anyone around this forum have similar experience and can recommend cheaper equipment for a startup with scalability
     
  2. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    My Uncle had one. Do you have experience in this field?
    Most of the equipment you can buy second hand or you can rent some of it too.
    Where is your location as you should do your research because I don't think the margins are what they once were.
     
  3. rhayramos11

    rhayramos11 Junior Member

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    I suggest a Tshirt Printing Business is better and less cost of equipments.. But can earn a lot...
     
  4. rayee

    rayee Power Member

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    I am in the Graphic industry. Do you really think i should buy second hand? I will be able to have sponsorship for the Fuji Xerox printer so thats $39,000 saved and probably $20,000 - $40,000 can be subsidised for the rest. I really dont think I will fork out a single cent for the equipment and even if i were to, the maximum i will fork out is 1k otherwise i won't buy =D

    Im more worried of the equipment that i will buy wrongly so I'm just hoping i could get some advice from those in the same field. This will be my first time and i used to outsource my printing jobs but now, I m thinking of bringing them in house.

    What your uncle margins? I understand from my suppliers that you could print a box of name cards for $5 and sell them for $30 . For special coatings, hot stampings, etc you could do it at $80 per box.. So I'm wondering what your uncle margins?
     
  5. rayee

    rayee Power Member

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    @rhayramos What equipment do you use for t-shirt? Do you run one? Maybe share the list of equipment and vendor you buy it from?
     
  6. tony_d

    tony_d Elite Member

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    I remember reading some time ago that the printing industry was the most capital intensive industry that exists... and I can accept that it would be. I'm not sure it's a great business, particularly when you consider how damn low the margins are - but that's guess work on my part rather than direct knowledge :)
     
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  7. rayee

    rayee Power Member

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    Im not really sure about the margins. I spoke to a few bosses and they told me that their margins was always over 100%. It will always be double, their margin. Some of them own chains of print shops. Maybe its the impression you get that they're selling at $30 per box and you will be wondering wow, they must be making really low to sell that cheap but the truth is one box is actually $5 thus the profit margin is over 100%. For those people selling at $10 per box, their cost is like $1 or less per box. Thats only if, you've the right equipment and printer to help save costs on the ink

    Soo... anyone here if you've knowledge of printing, let me know the equipment one should use for a startup.
     
  8. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    My Uncle retired from it several years ago, he made seriously good money from it.
    This was in the UK, and I really think that the print industry has changed considerably since then.

    Another way might be to operate as a Franchise.
    Will you be operating as a retail shop or as an Internet Business?
     
  9. wizard04

    wizard04 Elite Member

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    Don't get your hopes high in 100% margins, people usually lie about how great is the business is going and if that was true doesn't mean you will do as god as they. They have all that years to establish there businesses and marketing plan you will be newbie in that.
     
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  10. rayee

    rayee Power Member

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    Oh right, I do forget that business owners will lie about their business when in fact, its going shit down hill. Even as a franchise dont you ve to pay a fee?
     
  11. wizard04

    wizard04 Elite Member

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    No but people like to brag, does not mean his business is going down but the margins can be lower.

    And why are hes giving you advice on how to open the same business that he is, its like I helping my competitor to take a half of my business.
     
  12. rayee

    rayee Power Member

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    Hes not a competitor. He's my supplier and selling me the equipment so he might have some bias speech when selling to me. Additionally, the other boss i was referring to that owns a chain of printing shops was trying to sell me a franchise program and selling cards at $1 per 100 pieces but ive to pay 15k upfront. His turnover was a few million a year and i really dont think he will lie about this in front of such a large audience. Thus i think printing can be done but proper planning is needed.
     
  13. arnosv

    arnosv Regular Member

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    My family has some experience in this particular field. The start-up costs are very expensive indeed. Also, the competition is pretty high (the Netherlands), small business owners can't compete with the big ones in this industry (vistaprint, etc.). How are you going to compete with them? And which niche are you focussing on?

    Maybe you can take a look at execution actions for your equipment!

    -Arnosv
     
  14. UploadCash

    UploadCash BANNED BANNED

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    The total cost looks too much for me. Do you really need all these things?
     
  15. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    Do you actually have a business plan OP?
    Or are you just going by the profit margins quoted to you by the SALESMAN?
     
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  16. rayee

    rayee Power Member

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    Of course, ive a business plan.

    I am now gathering the list of equipments i need to buy and am still in the researching stage. Thats why I'm asking around but it seems like everyone is very focused on the feasibility and when I'm asking about the list of equipments i need to get for this business.

    Anyone have any idea?
     
  17. Panther28

    Panther28 Elite Member

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    when i was running a canvas and poster printing business full time, the biggest hurdle was the learning curve of running the thing, and obviously getting sales through the door.

    Have you actually taken a single order or sold a tshirt any other way, like screen printing then selling them at concerts, or your aim is to flush 80k down the toilet as fast as possible?
     
    Last edited: Jul 13, 2014
  18. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    The reasons the answers are crap is you have not provided any information.
    Who is your market for? What products will you sell? These will determine what equipment you need.
    Probably better to ask in a Printers Forum?
    http://www.colorprintingforum.com/
    http://forums.screenprinters.net/
    http://printplanet.com/
     
  19. tony_d

    tony_d Elite Member

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    I don't wish to sound like an ass, but, if you're going into business, you need to get your figures right - particularly if there is a reasonable amount of cap-ex involved.

    It's mathematically not possible to have 'margin over 100%'.

    Margin is the portion of the sales price that is either gross profit or net profit (gross being sales minus cost of goods sold, and net being sales minus all expenses).

    Therefore, assuming you're selling a product that is given to you for free, and doesn't cost anything to handle or ship or store, you could actually get a 100% margin (but never more), because 100% of your revenue is profit.

    If a $100 product costs you $20 to make, you have an 80% gross margin, and a 500% markup.
     
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