The cost of your promotional merchandise can differ depending upon the quantity, product and decoration you select.
This blog post aims to demystify the pricing process for promotional products and empower you to make the best purchasing decisions to maximise your return on investment.
The basics that go into the pricing of your promotional product include:
- The undecorated product cost
- Cost of decoration
- Setup cost and delivery
- Optional extras
Undecorated Product Cost
This is the cost of the base product itself before any decoration is added. Undecorated costs will change depending upon the quality and style of the product.
Typically larger quantities will benefit from economies of scale (the more you order the cheaper it is per unit)
Cost Of Decoration
This is the cost of adding a custom print or decoration to the product and is usually done on a per spot colour and per position basis. The more colours or positions you need the higher the cost.
Spot colour printing (pad print/screen print) means that each colour is printed using its own ink, so no gradients or shades are possible. Printing the product with light green and dark green is considered a two colour spot print even though both are green.
Full-colour printing (maxiCOLOUR Print) is the exception, which allows for an unlimited number of colours to be printed however you like. Because of the print process, it’s sometimes more economical to use this instead of multiple spot colour prints. Ask your promotional merchandise specialist or compare yourself to find the best option for your situation.
Note: A maxiCOLOUR print price may change in cost depending upon the size selected.
Let’s say you’re looking for printing on a cooler bag:
It will cost $0.80 per colour or per position for a screen print or $2.00 per position for a maxiCOLOUR Print.
3 Colour Print in 2 Positions = ($0.80 x 3) x 2 positions = $4.80
maxiCOLOUR Print in 2 Positions = $2 x 2 positions = $4.00
1 Colour Print in 1 Position = ($0.80 x 1) x 1 = $0.80
As you can see a maxiCOLOUR Print in this scenario is more economical than using a 3 colour screen print. And there is a big difference in cost when you add many positions or extra colours.
Setup Cost
The setup cost is the cost associated with the creation of the ink, screen, plate or preparation of the machines used to customise your products.
Like the cost of decoration, this is usually on a per colour or position basis.
The setup cost is a fixed cost that will apply to the whole job. Meaning that a larger quantity will significantly reduce the allocated setup per unit.
For example:
$75 setup per colour/position will result in the following setup costs:
3 Colour Print in 2 Positions = $75 x 6 = $450
maxiCOLOUR Print in 2 Positions = $75 x 2 = $150
1 Colour Print in 1 Position = $75 x 1 = $75
When compared with 50 units and 1000 units.
$450 / 50 = $9.00 setup per unit (50 units) $450 / 1000 = $0.45 setup per unit (1000 units)
$150 / 50 = $3.00 setup per unit (50 units) $150 / 1000 = $0.15 setup per unit (1000 units)
$75 / 50 = $1.50 setup per unit (50 units) $75 / 1000 = $0.075 setup per unit (1000 units)
As you can see from the above example setup cost per unit will go down significantly with higher quantities.
Delivery Cost
The freight cost is dependent upon the cubic volume, weight and location of the delivery.
This means that heavy objects with a large volume will typically incur a higher delivery cost.
1000 pens will be much cheaper than delivering the same number of bottles of water because the water is much heavier and has a larger cubic volume.
There may also be multiple delivery options depending upon the production location. For example, when we create a large number of goods in an overseas factory they can be delivered to Australia via sea freight or air freight. Sea freight will be cheaper but also take longer so there is a tradeoff depending upon when you need the goods.
Optional Extras
Optional extras will also impact the cost of the final product. These can be a great way to add perceived value and attractiveness to the product.
Optional extras may include:
- A gift box/gift tube
- Printed belly band (notebooks)
- Additional 3-in-1 cable for power banks
- Carry cases
- Personalised naming
Promotional Products Purchasing Tips
- If you’re after a small quantity it can be costly to do multiple print colours because of setup costs. Instead, consider changing your logo to a 1 colour print design or using a maxiCOLOUR Print.
- Always have your end recipient in mind when making purchasing decisions. What products are practical to them, what presentation of your logo will resonate best and what goal are you trying to achieve?
- Economies of scale savings mean that it’s cheaper to make one order of 1000 than 4x orders of 250. So if you can try to plan ahead and purchase in bulk to reduce costs.
- It can be sometimes more economical to select a maxiCOLOUR print than multiple spot colours – always check this or ask a production specialist for recommendations.
- Ordering in advance with plenty of time available gives you more options and cost savings. As merchandise needs to be customised the lead time is longer than a typical product you purchase online.
- Generally, optional extras work best when paired with premium products.
- Don’t be afraid to ask a promotional product specialist if you have questions or would like recommendations, that’s what they specialise in.
Summing Up
There are many variables that go into the pricing of your Promotional Products but now that you understand a little better how things work you can make better purchasing decisions.
The basic cost of a promotional product can be summarised to:
Undecorated cost + Decoration cost + (Setup/Quantity) = Cost Per Unit Of Promotional Product
Plus delivery and optional extras.
We’re ready to make your next promotional marketing campaign a success. Get a quote today or speak with one of our merchandise experts on 1300 303 717 to get started.