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.” Typically, the maximum figure is 10%, but I tend to limit overages to 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.

The disc “replication” process is a manufcaturing process where molten polycarbonate is stamped into molds to make the discs. This process is designed to handle orders from 1,000 and above. Orders for 20,000 to 60,000 are common, and this process 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. Whatever extra discs are good, up to 5% get included in the invoice to the client.

Now of course, as the quantity 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 it also makes sense, conversely, with a run of say 1,500 discs that 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. That makes sense, but the truth is that in our business, on certain large order 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 often see that you may receive 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 final $ amount that says, “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.

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 as well. 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, I’d like to hear from you.