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 Cost of Paper ratio

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Flexoto

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Number of posts : 61
Location : Pampanga
Member since : 2007-06-15

PostSubject: Cost of Paper ratio   Sun Jul 08, 2007 12:51 am

On the average what is the ratio of your cost of paper over your sales? Is 30%-40% reasonable? What about the other supplies such as ink, chemicals etc? How much percentage do you add on top of your price to recover the cost of your supplies?
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Archer



Number of posts : 58
Location : mandaluyong
Member since : 2007-06-08

PostSubject: Re: Cost of Paper ratio   Mon Jul 09, 2007 8:54 pm

While there is an average percentage, it is dangerous to rely on that ratio, what if in a particular situation the cost of paper is 90 percent of the selling price?
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Flexoto

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Number of posts : 61
Location : Pampanga
Member since : 2007-06-15

PostSubject: Re: Cost of Paper ratio   Mon Jul 09, 2007 10:49 pm

I got your point Archer but what I was trying to say is if you are going to sum up your sales for the year and your cost of materials, is 30-40% (cost of materials) good enough to become profitable? I am not talking about pricing; I am talking about profitability analysis.
Thank you.
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ibler



Number of posts : 112
Location : cebu
Member since : 2007-06-05

PostSubject: Re: Cost of Paper ratio   Tue Jul 10, 2007 11:14 am

OT

I'm sorry this is a semi-off topic. I think most of these figures vary on how each particular printer address their efficiency and productivity of their processes. There is no standard range for it.

But the fact of the matter is that there are industry ratios availble from DTI. Industry ratios will give you an idea as to the liquidity, profitability, debt ratios etc of players in a certain industry. These ratios will give you an ideas as to how the the industry operates and for sure you can also determine specific ratios that you need (i.e. the ratio of raw materials to products being sold... etc) If you have these figures, then you can compare them with your figures and see how your company is doing in relation to other players.

Hope this helps.
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