If you have ordered print or disc replication services, you have likely heard the term “overages.” This refers to the extra amount of product produced that exceeds the original quantity ordered. Traditionally, the customer agrees to pay for up to a certain percentage of “overs.”  Traditionally, the maximum figure is 10%, but I tend to limit overages to no more than 5%.

Granted, the practice has the potential to be cynically viewed as nothing more than a bait and switch technique.  But there is logic behind it.  Let me explain.

Disc “replication“ is a manufcaturing process where molten polycarbonate is stamped into molds to make the discs.  This is designed to handle orders from 1,000 and above.  Orders for 20,000 to 60,000 are common for me, and replication can deliver such quantities in a relatively fast turnaround.

It is also a process where there is “no going back” to make a few extra.  These plants are usually running at full capacity, and when one job is done, another job is right behind ready to roll. So, to ensure that enough discs are made to cover any rejected discs, etc., more discs than originally ordered are pressed. 

So it works like this, whatever extra discs are good, up to 5% get included in the invoice to the client.

Now of course, as the quantity of units in the order goes up, we reduce the maximum limit of overages.  We do not expect a client to have to pay for 5,000 extra discs for an order of 100,000.  But conversely, it also makes sense, that with a run of say 1,500 discs we be able to cover ourselves from having to go back and re-run an extra 75 discs.

You may rightly ask why we just don’t include the overages in our base price and be done with it.  Yeah, that does make sense, but the true reality is that in our business, on certain competitive bids, the decision is often made solely on unit cost, and to make such bids a level playing field with maximum disclosure, traditionally, overages have been treated as a separate line item.

You may find vendors, particularly on the web, who advertise “no overages,” but look closely at the small print and you will probably see that you may receive “unders,” in other words, only 90% of your requested quantity.

To help my clients navigate all of this and avoid any “overages” surprises, I have begun, in addition to our traditional Video Labs’ disclosures, to break out in my price quotes the maximum overages costs that could be incurred.  So, in my quotes, you will see at the bottom a sutotal $ amount and then a furhter line that says something like, “MAX FINAL TOTAL.”  I believe that helps.

Are overages percentages negotiable? I would be less than candid if I said no. But there’s nothing magical going on here.  It’s no different than what my clients face when dealing with their clients.  We all usually have some wiggle room, but hey, we all have to make a reasonable profit too, even in these crazy economic times.

I find that most of my clients enjoy doing business with me for reasons other than just price. The same is true for my sales colleagues at Video Labs.  But our clients do know that we always strive to provide competitive pricing.  And when it comes to ordering disc replication services, most of our clients understand that overages are part of that pricing process.

If you have any questions or comments about this, just call me 240-268-3504 or email me.

Do you know what disc authoring is?  It’s one of our fortes.