I have been looking around for overflow partners and am finding some companies pricing by time and others by impression?

Is one a better model than the other? We price most by sheet or impression; however, for things like application testing we have offered our equipment by the hour.

We offer pricing models based on per impression and per hour as well.

It's hard, because of what an impression is defined as and how many impressions can be completed in any given hour. Also, finding a good overflow site that has your paper, your rip and your level of color quality is a challenge.

Another idea is to cost out the job at your actual cost and offer it up to your overflow partners with the number of impressions it will take and see who will take the job given you've done all the work, they just need to run it.

If the overflow site needs the work, they will take it, if not, ask them for the closest price they can come to from the cost. If the price is reasonable, or you can go back to your customer for the difference, then its a win - win.

Digital printing needs partners that can trust each other in times of crisis for backup and downtime. It is hard to find partners you can trust to be fair and not steal work from you. Non-competes don't work because your partner might already be doing the work or trying to get that work. The key is accepting that risk and building a solid relationship with that partner. If you both can figure out a way to help each other out then it should work out.

I agree that partners are critical to sucess in digital print, but it is a little scary giving local competition my work (possibly a job they competed for). What is to stop them from directly contacting that customer. Are people using contracts?

What criteria have you looked for in a partner? Is smaller better? Is bigger better?

Looking for competitors to partner with is very difficult, but I believe it essential. I think you are on the right track.

I personally would look for the following:

1. Someone with the equipment and skills to produce a quality of work that you are willing to put your name on.
2. Someone who will price fairly. I do not mean the cheapest, but fairly. You have a pretty good idea of there costs because your costs are similar. Let them make a fair amount of margin. This will prevent them from under prioritizing your work and discourage them from attempting to steal your customer. After all, if you can make money by working with someone in the industry, that is a lot easier than working with a customer. If they have a sales force, remind them that this could be a house account (that saves them paying commission).
3. Use your gut. Don't deal with someone that you feel you cannot trust. You will probably regret not listening to yourself.
4. Make the agreement reciprical. You will honor the same price that they provide to you. Define charges for frequent types of work (i.e. for digital print, agree ahead of time on a color impression price and size).

I don't know if there size matters. Certainly they need to be big enough to have the resources you require for your work. Too big, you might get lost in the shuffle. Too small, they might monopolize your time. Too big, means more employees and sales people, they might not be able to stop from selling to your customers. To small, they might to desperately need your customers, or they might be more trust worthy because of a personal relationship you can form.

I personally prefer partners close enough to me to work with, but far enough that it proclude them from just dropping in on my customer or my customer doing that to them.

Most importantly discuss these concerns with a potential partner and see how they react and feel. Make the agreement reciprical, that will hopefully cause them to think about how they want to be treated by you when they are handling your work or considering your customer.