PRICING VARIABLE PRINTING — CASHING IN ON VDP
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A good baseline to establish this value is the impact of a catastrophic project failure on the business, either through direct reimbursement to the client or impact to error and omissions coverage.
There is one remaining element to consider when pricing VDP projects. This element is more in line with that of any growing business—cost of overcapacity/underutilization. Most VDP businesses are started based on a single client project/program. Thus there must be enough capacity to meet delivery requirements of that core client work, usually in a very short time frame. This means excess capacity and its accompanying overhead. This underutilization is more prevalent in the VDP business based on several factors, including:
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Jim Liszewski
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