Desktop Publishing Company | Pricing & Profitability
PRICING & PROFITABILITY
Competitive pricing will be an important marketing tool of Power Desk Top Publishing, Inc. In doing their market research, all existing desk top publishers in the St. Louis area were surveyed by the Lanes to determine their price structure.
Because of the low overhead operation contemplated by Power Desk Top Publishing, introductory and student discounts can be offered to gain access to the market. Once the quality and service of Power Desk Top Publishing becomes known, Power DTP will be able to compete effectively at prevailing market prices.
Because of the efficiencies inherent to desk top publishing, a good margin of gross profit is normal for the industry. This is particularly true for Power Desk Top Publishing, which, at its inception, will be completely owner-operated and situated in an in-home location.
Paper costs make up the primary hard cost of any given job and normally runs 16% to 18%.
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