Do you recognise the silent profit killer in your pricing strategy?
4 November 2025
Do not sell yourself short: why basing your selling prices on variable costs could cost your print business dearly.
Increasingly, voices in the industry suggest that print companies should base their prices solely on contribution margin – meaning only variable costs such as paper, ink, and labour. According to them, full-cost models that include fixed costs are “outdated”. It sounds modern and flexible, but in reality, this is a dangerous simplification that can undermine your print shop’s profitability in the long run.
Why contribution margin thinking falls short
The contribution margin, what remains after deducting variable costs, is a useful measure to determine whether an additional job is profitable enough. However, if you build your entire pricing strategy on it, you ignore a crucial part of reality. Your fixed costs – machines, software, buildings, administration and staff – do not disappear simply because you do not include them. If your prices fail to cover your total costs, you will eventually face problems, no matter how busy your presses are.
In every serious production environment, from automotive to furniture, full cost prices are used. Only then do you know what something truly costs and where you are making profit or loss.
The real problem: poor data, not the model
Full-cost models are not outdated relics. They are actually smart, provided that the data is accurate. And that is often where the problem lies. Many companies still use outdated or overly general data, leading to inaccurate calculations. The solution? Do not discard the full-cost model, but rather invest in reliable and up-to-date data. Only with accurate figures can you improve your processes, justify your prices and protect your margins.
The right price is about value, not cost
An important insight: your selling price must reflect the value you provide to your customer, not merely your internal cost structure. However, to price confidently, you must know what a job really costs: from paper and ink to labour, machine hours, setup, delivery and overhead. The better you understand your cost base, the better you can sell, identify bottlenecks and improve margins. Smart sales and well-organised production together create sustainable profit.
"The uncomfortable truth: you cannot make money if you cannot sell and produce effectively."
Where MIS/ERP software makes the difference
This is where smart technology comes into play. A powerful Print MIS/ERP system does much more than manage your planning. It provides clear, reliable data on costs, performance and post-calculations, exactly what you need to make sound decisions.
Dataline MultiPress is an excellent example. The system accurately calculates full costs, monitors production performance in real time and automatically performs job-level post-calculations. With integrated tools for quotations, planning and financial follow-up, MultiPress transforms complex cost calculation into a powerful competitive advantage.
Conclusion: more profit begins with insight
Print companies that base prices on gut feeling or contribution margins alone take unnecessary risks. Those who choose a full-cost model supported by reliable data and a modern MIS/ERP system establish the foundation for sustainable and profitable growth.
Want to know what your print work really costs and how to price smarter?
Book a meeting with one of our business experts and discover how MultiPress helps you gain insight, work more efficiently and increase profit margins.