Charging for Digital Services

1
Bob Roperti

• Charging for Digital Services
• other than printing

2
The IRgA Digital Services Committee
(2006)Defined Digital Services this way

• The creation, preparation, manipulation and
  management of digital files for the purpose of
  conveying information for the electronic
  distribution, printout or archival purposes.
  Not paper related

3
Survey Results ERRA/SRA

• Percent of Reprographers Charging for Digital
  Services
• - 94.7 vs
  IRgA 2006 was 90
• - File conversion 90 plus
  (competitors dont)
• Percent of Revenue from Plan rooms
• - Less than 10 of overall
• - List Plan Room Service by line item
  on invoice
• lt less than 50
• Need comprehensive staff training 36 -
  46
• 20-25 Revenue Goal Established
• by Major Market Players

4
What do we charge for?How do we determine
pricing?What are some procedures?Who
determines whats billed?What Resources are
available?
5
U S ReprographicsRelease

• 100K in Digital Fees in One Project
• Instead of talking about charging for digital
  fees produces them!
• Traditional Reprographics
• Plans and Specs 50,500
• Ancillary Binding, etc. 2,000
• Costs lt34,350gt
• NET PROFIT 18,150
• (on the SAME project)
• (Note calculated at 50 sets versus 100 sets
  above)
• Dashboard 23,320
• Plans and Specs 59,600
• Ancillary Binding, etc. 1,000

6
Recent Job

• GC provided CDs that came from the Developer
• Content
• 2 - tiff aerials
• 4 - tiff files
• 133 - Dwg. Files w/attributes
• 201 - Pdf. files saved as D size
• but the project sheets
  are Es
• 33 - Plt. Files
• 975 - Spec files Word and Pdf
• We charged a substantial project setup fee

7
Changes in the way we handle digital content
require

• Education - Customer, Sales Staff -
  Customer Service, Pre-flight
• New Production procedures
• Billing Codes and Procedures

8
Changes in the way we handle digital content
require (continued)

• Handling client objections .
• - Salesman
• - Customer Service Rep.
• - Pre-Flight Staff
• Statement of value... outline of service provided

9
Letter to Customers
10
What do we charge for PRE FLIGHT
Access the file - Downloading
FTP Another Site
File setup type /conversion
- check files
against index
- open each file
- check orientation
- file corrections/modificat
ions -
name sheets
- insertions - revisions
- client directed changes
Print Ready
Files
11
How do we determine Pricing

• Market accepted Practices
• - Evolved from plotting services
• - Discussion with Competitors
• - (Reprographic Service Association (RSA)-
  Member Training
• - US Reprographics
• IRgA
• - Best Practices- 75 items Survey
• - IRgA Members
• Customer Services/ Pre-Flight
• Results New Billing Codes

12
What Procedures are in place

• Handling CD Distribution of Content
• - CD Label Information
• - Printable files must content imbedded
• information
• - Plan Room Registration
• Addendums New releases

13
Sample Letter. Shipped with Transmittal This CD
was produced by Jiffy Reprographics. This CD
contains the current set of Plans and
Specifications for the Construction Project
-Name Current this date__ __ __ __ Any
revisions/addendums or new releases will be
available to the initial plan holders. Hard copy
Plans and Specs may be ordered from Jiffy
Reprographics. Fax your order with project name
and credit card details to 727-442-8795 or for
you convenience login to the Online Planroom at
www.jiffyplanroom.com Plan sheets -------
each Specs .--- each Color schedule sheets .---
each Any questions, please call me at 1 800
780-7377 Addendums and new releases will be
posted at www.jiffyplanroom.com Michael
Grogg
14
CD Cover Sample
15
Thumb Drives/DVDs

• Project provided on these media are
  pre-flighted Charges are applied
• Changes - Addendums/ new releases incur charges
• Updating Index File names

16
Who Determines Whats Billed
(Survey Results) ERRA -
Digital Supervisor 42.1
Salesman 36.8 SRA - Billing
Clerk 42.9
Production/Digital
Supervisor 14.3 Jiffy
Reprographics Digital
Pre-flight 78 Billing
Clerk 22 Training Staff to Speak
the same language is the key

17
Content Who pays the setup

• He who provide the content for distribution Pays
• - Developer
• - Municipality
• - Architect
• - Engineering
• - Construction Manager
• - General Contractor
• - Others
• These are the ones we bill for project setup .
  

18
Resources

• IRgA
• -Best Practices Statement
• -Survey Power Point
• -Report Range of Charges
• -Convention Tapes
• -Educational Sessions (2005 ,2006, 2007)
• -Repro Report Articles
• -Webinar Training
• -Digital Services Guide- In production

19
Change is inevitable Dont get caught !
Questions