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Evaluating Pricing & Estimating Software: Finding the Application That Fits
by Specialty Graphic Imaging Association
 Because the graphic imaging industry is somewhat unique within the larger business environment, it may be necessary to use a business management program specifically designed with the industry in mind. Fortunately, a selection of programs is available to SGIA member companies.
This article can serve as a starting point for your research. You should also inquire about competitive products and speak with your regular industry suppliers.
Classifying a Program
We are focusing on Pricing and Estimating Software, this software may be a stand alone product or it may be incorporated with other business management applications. Here is a brief description of how programs may be classified.
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1. Pricing & Estimating
Pricing screen printing can be challenging, there are several programs available with this specific task in mind. Some also offer full business management capabilities, but their primary task is to prepare job estimates and price lists designed to give you profitable sales based on accurate cost accounting.
2. Business Management
These programs are primarily used to handle daily business related entries for financial reporting and accounting, or for "keeping the books." These systems may offer a fully integrated package containing accounts receivable, accounts payable, vendor and customer lists, invoicing, payroll, general ledger, purchase orders, inventory, asset management, and so forth. They may not include modules for pricing, production, or operations management.
Some software companies provide a basic system and offer modules to be purchased and integrated as needed. This helps companies ease into a business system. With this option, small companies can set up a bookkeeping system without the concern of maintaining inventory or making purchase orders on the computer until the time is right for them to do so. Modules can be added as a company needs them and as they can afford them, making the system flexible.
3. Production & Operations Management
These programs are designed specifically to keep track of workflow, production scheduling, quality control data, and other aspects necessary for controlling a complex printing facility. Programs in this category provide valuable information about pressroom and shop performance, and some are directly connectable to computerized production equipment, which enables you to keep track of the number of impressions made, press down time, production speed and other details. While the amount of data available may seem overwhelming, wise use of the information can lead to a profitable and efficient production shop.
4. Hybrid
These all-in-one programs combine the aspects of the first three categories into one massive program for running a sizeable shop. |
Getting Started
To adopt or reject a particular program is the choice of company management. This choice is often based on three factors, which are company size, the specific needs of the company such as product specialty or multiuser capability, and price. These are broad categories, but most decisions boil down to these issues.
As an example, a three-person shop producing T-shirts, with annual revenues of $300k, does not require a complicated business management system geared toward signs and flat stock production. A program that offers basic bookkeeping and accurate quotes for T-shirts is better suited for this shop. However, a company producing millions of T-shirts per year and employing 50 to 100 employees would benefit from a robust and complete business management system with network and multiuser capability.
You probably intuitively know what you need, whether or not you realize it. You already know if you are a small shop on a tight budget or a large facility with financial strength and flexibility, and this knowledge will guide your search for appropriate software.
Making a Decision
When you find a few programs that interest you, decision time begins. There is no one foolproof way to arrive at a decision, but using these pointers can make the process easier.
First, see if you like how it operates. This sounds simplistic, but is an integral part of the decision matrix. If you are not comfortable with the way the program works, you might not be inclined to support it once it is installed. If they all seem difficult, choose the one that you or your staff find the most intuitive.
Second, talk to other companies who use the program. The software company will give you a list, but keep in mind that they will generally give you the names of companies that like the system. Ask for a generic list and call the listed names to get their candid opinions. You can also put a message out on industry bulletin boards asking users for their feedback ? the ones who don?t like the program usually voice their opinions, which will give you a more rounded view of the system. Look for comments on ease of use, how well it does what it is supposed to, program bugs, customer support, and product updates.
Next, if applicable, have your accountant review the system specifications to verify that it will meet your needs. Accountants use standard accounting practices to prepare financial reports, be sure the program prepares reports as required, or can be modified to fit your accounting practices. Don?t hesitate to have your accountant speak with a representative from the software company.
You will also want to ensure that the program is technically up to date. Make sure the program is compatible with your system.
Another note: do not plan to use your graphics computer to do business accounting. If you do, you will discover a time conflict when you need the system to do both jobs and it simply can?t. Computers are becoming very affordable, so it will pay big dividends in the long run to purchase a separate one for accounting and management.
Finally, ask about the cost of upgrades, initial training, and continuing support. Some software companies will ask for substantial fees to provide you with ongoing customer support. Know the cost upfront.
 Figuring the Cost
A nice program for generating price lists can go for a very reasonable price. Sophisticated multiuser software with full production control, and all the bells and whistles, can climb into the tens of thousands of dollars and may be well worth the price. And of course there are programs in between. Keep in mind that price does not guarantee quality or usefulness? Some of the heftier systems may be just as good a fit for you as a moderately priced one. The moral of the story is not to dismiss a product because of a lower price, while realizing you may need to make a serious investment in a higher priced system.
You should also consider the cost of training, service and support when choosing software. Some companies provide basic support as long as you own a current product ? meaning you have to upgrade when newer versions become available. Others give free support during the warranty period but charge a fee for continued support when the warranty lapses. It could be useful to talk to current product users to find out what they think about the value of paid support. Don?t dismiss a support option off hand? purchasing one may be good insurance in the long run. When it is possible, try to negotiate an extended level of support in your original purchase price.
Training the Product
Larger management systems are, not surprisingly, more complicated than their smaller counterparts. At some point you will realize that training is not an option, it is a necessity. Some companies provide basic training at no additional cost, and some will train you for an additional fee. Try to negotiate some level of training into your original purchase price. If you do pay for additional training, make sure your staff has enough experience with the system to make the training valuable. It is least valuable when the trainer has to show you hot to point-and-click on simple menu options, and much more beneficial when the focus is on applications that go beyond normal daily activity. Consider formal training at time intervals of three to six months after the program is initially installed.
Please take advantage of many Business Management resources SGIA makes available for its members.
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