23 March 2005

BPIF drives initiative to improve print industry costing systems

BPIF Business is working with Leicester-based Ortega systems in order to both benchmark and provide best-practice guidance for costing in the UK printing industry. BPIF Business manager Graham Arundell emphasizes the negative impact that inaccurate costing can have on the industry: “You often hear printers complaining that a competitor has won a job on a suicidal margin; ‘he can’t even be covering his costs’. However, contrary to industry fable, most companies are trying to stay in business. More often than not the wide discrepancies between prices (in either direction) result from inaccurate or unrealistic costing systems. By providing accurate industry benchmarking data and a tool by which small companies can more accurately assess their costs bases, our aim is to try and get closer to the real cost of print.” To achieve this BPIF Business will be working with CostDriver – Standard Edition software that was developed specifically for the project with Ortega Systems. Ortega’s managing director John Roche comments: “The BPIF approached us as they knew of our CostDriver product which was written specifically for calculating cost rates in the printing industry. For the project we have developed a new, scaled-down version that would be easy for anyone to use, which is the CostDriver – Standard Edition. The help-file built into the software is the most comprehensive we have ever written and provides help and tuition that ranges from the theory behind the maths, through to printing out a simple report.” Arundell continues “Many owners have grown their businesses from the shop floor and are unsure how to calculate the cost of their manufacturing processes, or other services, so they either rely on perceived market rates, or simply take an educated guess. To some, the actual cost is considered completely irrelevant, in the belief that market rates ultimately determine prices. This thinking is not only dangerous, but can prove a very quick road to bankruptcy. “It is imperative to know what it is costing to run your business and to manage these costs effectively. It is therefore more than appropriate that BPIF Business drives an initiative that will enable printing companies to do just this. And in order to help us achieve our objectives, we will be making available fit-for-purpose, industry-specific software, free of charge, to every printer who takes part. This will be backed up where appropriate with seminars, classroom-style training courses and one to one consultancy.” All delegates at last week’s BPIF Regional Conference Chelsea Football Stadium in London received a free copy of the software. Other printers interested in participating in the project should contact Graham Arundell direct on 01924 203330 or email [email protected]. The BPIF hopes to publish initial results of the project at a seminar in Autumn 2005.