The Economics Of Ink-jet Addressing

By John Wolf

Table 1

Printer A
28,000 pph with 2 people and ink @ 25¢ per 1,000.

(a) 8 hour day — $224,000
(b) Ink cost for the day — $ 56
(c) 8 hours x number of people x $15/hour — $ 240
(d) Labor + ink (b+c) — $ 296
(e) Gross Revenue (a x $20/1,000) — $ 4,480
(f) 80% productive per day (e x .80) — $ 3,584
(g) X 5 days per week (f x 5) — $17,920
X 4.3 weeks per month (g x 4.3) — $77,056

Printer B
34,000 pph with 3 people and ink @ 45¢ per 1,000.

(a) 8 hour day — $272,000
(b) Ink cost for the day — $ 123
(c) 8 hours x number of people x $15/hour — $ 360
(d) Labor + ink (b+c) — $ 483
(e) Gross Revenue (a x $20/1,000) — $ 5,440
(f) 80% productive per day (e x .80) — $ 4,352
(g) X 5 days per week (f x 5) — $21,760
X 4.3 weeks per month (g x 4.3) — $93,568
Additional monthly revenue: $16,512

ACROSS THE street from my office, I noticed one of our neighbors preparing his race car for the local speedway track. Admiring his sleek speedster, and always interested in going fast, I asked, "How much does a car like that cost?" His smile nearly grew to the width of this face before he replied: "How fast do you want to go?"

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