Pricing matrices provide consistent pricing for the amount of work and type of work that's being done
Why is this important? Whether it's an employee's first day on the job or they've been at your shop for 15 years, they can easily and confidently quote out a customer knowing that they're giving the correct price for the work that's being done.
In this article we'll cover:
(To learn how to apply a pricing matrix to a line item, check out our guide on line items.)
How do pricing matrices work?
Printavo's pricing matrices operate on a simple formula: (GARMENT COST * YOUR MARKUP) + YOUR PRODUCTION COST
Garment cost will be pulled from a connected distributor catalog or your custom pricing, depending on the product at hand
Your markup is set in the pricing matrix based upon the quantity of product
Your production cost is set in the pricing matrix based upon the quantity of the product and the specificity of the work being done
Let's use the following sample matrix to demonstrate how Printavo calculates the cost of a product:
Note: This matrix is merely an example and is not meant to be a standard for pricing
Now let's break down the sections of the matrix:
- Quantity breaks: The numbers in the cells of the quantity column represent the low end of the quantity range. For example, the top row in our screenshot sample says 12, but really means 12-23 because the next row starts a new break for 24. The next row will be 24-71, then 72-143, etc.
- Column delineators: These column headers are simply classifiers for the work that you're pricing out. In our example, these are color counts, but these could be stitch ranges, dimension ranges, or any classification of work.
- Product markup: The product markup associates with the quantity break row. Please note that the baseline for a markup is 100%. "Marking up" below 100% will provide a discount, whereas marking up above 100% will provide your desired compensation (i.e., to mark something up 30% you would put 130 in this column rather than 30).
- Production cost: Your production costs are the intersection of your quantity break and column delineator.
Say a customer wants 350 shirts with a total of 2 colors. You get that shirt for $2.55. How much will Printavo quote the customer?
First, let's take a look at where our matrix will be pulling information for this circumstance:
Now, let's recall our formula and make the proper substitutions:
- (GARMENT COST * YOUR MARKUP) + YOUR PRODUCTION COST
- ($2.55 * 1.5) + $1.70
- ($3.83) + $1.70
So for 350 shirts on a 2 color run, we'll be quoting the customer $1,935.50.
How to import a pricing matrix
- Most matrices will upload immediately, but larger matrices can take a minute or two to display on your matrix page. Contact us at firstname.lastname@example.org if you are having difficulties viewing your uploaded matrix.
- Users can manually edit matrices without uploading a new one. Simply click into the cell you'd like to edit and use the green "Save" button to approve and apply your changes.