The Tip Stop #4: Pricing Matrices

printavo The Tip Stop Tips & Tricks

Before you read...

Printavo is simple shop management software. We help you streamline your business, keep jobs moving forward and your team on the same page.

Scheduling, quoting, approvals, payments, customer communication, automation and more. With Printavo, you’ll work smarter–not harder.

Welcome to The Tip Stop!

The Tip Stop is Printavo's new series providing you with easy tips and tricks that enhance your Printavo experience!

Let's take a look at this issue's tips:

This week, we're looking at pricing matrices!

Quoting with a pricing matrix ensures that you (and anyone with quoting permissions in Printavo) are providing consistent, accurate quotes based on the amount and type of work that you're doing.

If you're tired of answering some version of the question, "How much do we charge for a 2-color front, 1-color sleeve with an embroidered left chest for 500 shirts for Customer X?" then pricing matrices may be for you.

And, ICYMI, every subscription tier of Printavo now has unlimited pricing matrices!

In this week's Tip Stop, we'll take a look at:

  • How pricing matrices calculate price 🧮
  • How to build a pricing matrix (with a free download!) 🛠
  • Different types of pricing matrices that shops use 🌈

Once you're comfortable with and understand pricing matrices, check out our quick how-to guide (and video!) on how to apply pricing to a quote in Printavo!

How does a pricing matrix work?

Pricing matrices in Printavo operate off of a basic formula:

Unit Cost =
(Garment Cost * Your Markup)
+ Your Production Cost

Here's an example: Let's say your customer wants to order 100 shirts with a two-color left chest. After showing your customer a bunch of options, they settle on Shirt X, which you know you get for $2 per unit.

Using our sample matrix below, we can see that a quantity of 100 shirts will be marked up 50% and, for a 2-color run, will add a cost of $1.60 per shirt.

So in this case:

  • Garment Cost = $2
  • Your Markup = 50%
  • Your Production Cost = $1.60

This means the customer will pay $4.60 per shirt.

How did we get there? Math time:

Unit Cost = 
(Garment Cost * Your Markup)
+ Your Production Cost

Unit Cost =
($2 * 1.5)
+ $1.6

Unit Cost =
$3
+ $1.6

Unit Cost =
$4.60

Not into "Math time"? 🚫➕➖✖️➗⏱

Let the pricing matrix do the work for you!

How do I build a pricing matrix?

One of the top questions we get at Printavo is "How should I price out my jobs?"

The answer to this question depends on a lot of factors - largely on your profitability goals and your overhead.

BUT, we still want to help you out, so we've created an awesome resource that includes a free downloadable template to help you build your own pricing matrix!

Types of matrices shops use

How do shops effectively use pricing matrices? Here are some examples of matrix types we've seen that accommodate various situations:

  • Contract Pricing: shops set their markup column to 0% to "zero out" the garment cost and only charge your production cost.
  • Tier 1/2/3 Pricing: shops use pricing matrices with different markup percentages based on how much business a customer brings you (e.g., a Tier 1 customer may be someone who's brand new whereas Tier 3 may be someone who orders from you once per week).
  • Whites/Grays/Colors: shops often have different pricing matrices they used based on garment color to adjust for things like under-base and flash times.

Next Post: Is Hot Market Printing Profitable in Your Screen Printing Business?

About Printavo

Printavo is simple shop management software. We help you streamline your business, keep jobs moving forward and your team on the same page.

Scheduling, quoting, approvals, payments, customer communication, automation and more. With Printavo, you’ll work smarter–not harder.