focus on the right factors

Focus on the Right Factors: Sublimation production costs

Award-winning author and international speaker Jimmy Lamb has over 25 years of product decoration business experience. Mr. Lamb has extensive knowledge in many facets of digital decorating and embellishing including business startup, applications, techniques, marketing, sales, mobile, production and management. He has owned and operated a successful production facility, started a retail franchise operation and has provided production solutions to a variety of Fortune 500 corporations involved in customization, decoration and embellishment. His articles appear regularly in various industry magazines in the United States and Europe. In addition, Mr. Lamb is a frequent speaker at Industry Events and Trade Shows domestically and internationally. Currently, he works with Sawgrass Technologies as the Manager of Communication and Education, where he has been instrumental in developing their educational seminars and webinars. 

Many decorators focus only on ink, paper, and substrate costs when determining how much is spent on production. This calculation leaves out all the overhead costs, including rent, power, insurance, phone, website, e-mail, advertising, marketing collateral, chamber and professional association fees, etc.

A more accurate calculation of production costs should include all the anticipated overhead costs for the year, including a desired paycheck for yourself. Overhead costs and your salary should be allocated proportionately to the price of your products to ensure profitability. If prices are too high after overhead and salary are factored in, then focus on reducing overhead costs or focus on increasing production so that the allocation of these costs is smaller.

—Jimmy Lamb, Sawgrass