Bare minimum to charge / ask during pandemic? Lowest price you would comfortably go down to??

[CSOCSO]

Not sure if this should be a rant or just an attempt trying to gather info.
First things first: Business is slow. VERY slow. We have a hard time during the pandemic.
Trying to keep this conversation on topic. Not asking what else I could do to bring in more business and before we go into detail: yes, I am aware that I should price something depending on my overhead also. I know some have less than others and some have more. In South Florida I would say a normal price would be $6 per sf on calendered and $8 for cast vinyl. ( printed installed)

I had someone call me to do several NV200s with bumpers!! No roof wrap just the front upped part and no windows.

I told him that I would charge him around $2000 per van. He told me the last guy charged him $1400 using 3m vinyl.
That is way below calendered pricing. I would say I am comfortable to come down to $7 if he has multiple vehicles. But less than 5????
Maaaaaybe even $6 since I have nothing to do.

I am about to meet him and talk to him how he feels about $6 but that is $1700. $300 above what he was charged before. I don't think he's gonna go for it.

He says he builds a lot of vehicles. I will get an exact number but let's say he builds 2 vehicles a month.
Should I just try to shoot for $6 and do it until everything back to normal?

How do you guys feel about it? I believe $5 is what i need to pay for everything so no way I would go that low.

 

[TammieH]

So why isn't he using the "last guy" ? People can say anything they want. But of course it depends on how hungry you are.

Good Luck ...hope we all make it through this

 

[d fleming]

So why isn't he using the "last guy" ? People can say anything they want. But of course it depends on how hungry you are.

Good Luck ...hope we all make it through this

Because the last guy went belly up and lives in his grandmas garage now, lol.

 

[MikePatterson]

Is this for cut vinyl or wrap?

 

[Billct2]

I would consider discounting a bit to stay busy. I have employees counting their checks so if it can keep them busy and cover costs it may be worth a shot.
But the particular example you gave always sets off alarms....I'm with Tammie and fleming....why isn't he just using the last place?

 

[Gino]

Ya gotta get what ya gotta get. If you go in for his price, it appears you're leaving money on the table. Like Tammie said, they can say anything.

Had a guy about 4 or 5 months ago, call me about his lettering needs. I gave him a price and he said...... well, this is what my last guy charged. I said, good for him. Why isn't he still doing them ?? Well, he's kinda undependable.... Uh-huh. He's also careless, Uh-huh. He's wants more money. Uh-huh. Okay, here's what I'll do. I'll go halfway in between and after two pieces, we'll see where we're at. Okay. After the first two, I said, sorry, but I need more money..... about twice what I'm doing 'em for now. He hemmed and hawed, but said, Okay. He's been paying more than my original quote and he's happy and last week I just finished the 14th or 15th one. In talking with his guys, the other guy was working outta his basement, but getting a=everything cut and printed at work, along with all the supplies. He had NO investment, other than his time, which was unpredictable.

This all goes to say, I can see 10% or even 15%, but 30% is just too much to give in to, unless you just wanna do it for sh!ts & giggles. Be careful and just know what you are saying and stand firm. If you're not gonna get paid, why do it at all ??

 

[player]

I used to always ask to see the invoice then we can talk about what the other guy charged.

 

[netsol]

Ya gotta get what ya gotta get. If you go in for his price, it appears you're leaving money on the table. Like Tammie said, they can say anything.

Had a guy about 4 or 5 months ago, call me about his lettering needs. I gave him a price and he said...... well, this is what my last guy charged. I said, good for him. Why isn't he still doing them ?? Well, he's kinda undependable.... Uh-huh. He's also careless, Uh-huh. He's wants more money. Uh-huh. Okay, here's what I'll do. I'll go halfway in between and after two pieces, we'll see where we're at. Okay. After the first two, I said, sorry, but I need more money..... about twice what I'm doing 'em for now. He hemmed and hawed, but said, Okay. He's been paying more than my original quote and he's happy and last week I just finished the 14th or 15th one. In talking with his guys, the other guy was working outta his basement, but getting a=everything cut and printed at work, along with all the supplies. He had NO investment, other than his time, which was unpredictable.

This all goes to say, I can see 10% or even 15%, but 30% is just too much to give in to, unless you just wanna do it for sh!ts & giggles. Be careful and just know what you are saying and stand firm. If you're not gonna get paid, why do it at all ??

come on Gino
i notice it is much easier to kick into the "race to the bottom" speech if you are not in a hotspot state. (i know you are in PA but not everyone has the decades in the business & financial stability you have)

So, i see wher OP is coming from
so his choice is between "leaving money on the table". or potentially taking in nothing

i think he should consider it. takng this work, if it's the only activity this week, is not precident setting. allegedly there will be an end to this & priing can go bck to normal

 

[CanuckSigns]

Buyers are liers. We've all had someone call and tell us about how many wraps/signs/ whatever they buy in a year, 99% of the time they are massively inflating that number in hopes that you bend over backwards to do their job at cost. When you catch on to the BS they just move on to the next shop.

If you are slow and looking to keep staff working, you can cut your price a bit, but make sure you cover all your costs, but price it based on doing 1 vehicle, not multiples. During these trying times, if you can keep your doors open and staff paid for another week, that's the name of the game right now.

 

[rjssigns]

Work just to stay busy? Doing it so cheap that there may not be enough to cover bills isn't good either.

I'm 100% in Agreement with TammieH.

Gino has a point too.

 

[netsol]

Work just to stay busy? Doing it so cheap that there may not be enough to cover bills isn't good either.

I'm 100% in Agreement with TammieH.

Gino has a point too.

but this i hopefully a unique situation. not our "new normal"
and you can be damned sure it wouldn't be the new normsl if such a huge percentage of small businesses weren't taking the brunt of it, while every government employee is getting their full pay...

 

[StarSign]

If you feel good about it and you are still making some $ do it. I would make sure you get paid up front

 

[netsol]

https://www.the-sun.com/news/677367/france-coronavirus-lockdown-month-death-toll-15000/
i feel like nostradamus (actually Cassandra, but we could open a new thread for that)

https://en.m.wikipedia.org/wiki/Cassandra

 

[rjssigns]

but this i hopefully a unique situation. not our "new normal"
and you can be damned sure it wouldn't be the new normsl if such a huge percentage of small businesses weren't taking the brunt of it, while every government employee is getting their full pay...

Understood. Not sure how all of this will shake out. Right now the sign shop is 99% shut down and I'm good with that. I'm older(not many years to retirement) and have other income streams. Wife and I have been talking about the pandemic and its effect once it's over and into the foreseeable future. We figure there will be a paradigm shift in everything.

 

[Texas_Signmaker]

I've prices some things the last few weeks that I wasn't so proud of... But I'm not too proud to price myself out of a job right now. I'm not going to work for free.

 

[Gino]

netsol..... I'm not saying it's a race to the bottom or even about financial stability, but just common sense tells you....... if you need normally $2,000 to do a job, your overhead, materials, utilities, insurances, taxes and profit are all in that price. If you drop a 1/3, you hafta be around or close to breaking even. Breaking even makes no sense. None whatsoever. You still hafta pay all the same bills and taxes and now you've just done a job where you more than likely lost in the long-run. Like rjs kinda said, we are not gonna go back to what it was. The future has been changed as we know it. After 911, things never got back to what it was. Things will get better, but not the same and if you start making adjustments now to pay people to do their work, you're gonna be in for a rude awakening.

Unless he can show real profit, pay all the variables...... the OP should walk away. All this, unless the OP has unlimited funding and just wants to stay busy.

 

[netsol]

Understood. Not sure how all of this will shake out. Right now the sign shop is 99% shut down and I'm good with that. I'm older(not many years to retirement) and have other income streams. Wife and I have been talking about the pandemic and its effect once it's over and into the foreseeable future. We figure there will be a paradigm shift in everything.

I've prices some things the last few weeks that I wasn't so proud of... But I'm not too proud to price myself out of a job right now. I'm not going to work for free.

i do see your point

better than 90% of my clients are currently closed
i might say yes to quite a few jobs i would otherwise never touch

 

[CSOCSO]

So I met the guy, It is a FULL wrap with 180cv3 and 8518 lamination. ( is what he was sold on) Bumpers included front and back (nv200) no roof wrap just the first ft of it and no windows - no perf.
I told him Just because of the current situation I am willing to go down on the price and meet him half way of what i would charge normally and told him $1700 ( closer to his price. not even half way. 1800 would be half way. anyway...)
Wrapped looked GOOD! Nothing lifting. No ugly cuts. Looks like a proper wrap. He told me the other guy has issues with his machine. I guess he has no money to fix it. There is no way normally i would wanna break even. Right now many people and shops are losing money and they would feel blessed to be able to break even. $1400 is still a ridiculous price. Like.. Not sure if I should just sit on my ass instead and see the shop closed and no money to even pay the bills?! Also might consider taking the first one at $1400 but the others at $1700. Just so he would see my work which would be better than what he got done. But then again. I see things. He might not see it the way I can tell if something was done decent that will hold up or very good - they went the extra mile to get it done.

 

[MikePro]

i call b.s. Your quote is closer to what mine & many others would-be. His "last-guy's quote" may have only been a partial-wrap & lettering OR was just an item line on a quote that didn't include installation, or the guy was operating a business out of the trunk of his car and was just happy to make enough $$$ at the end of the day to buy a 6pack of beer.

either way, stick to your guns and your pricing structure.
if anything, you would be charging more for your services due to the extra care & cleaning involved with exposing yourself and employees to any number of transmissions of cov19.

 

[Notarealsignguy]

You have to do what you have to do. If I had no work at all and it was costing me $1000 a day to do nothing I would look pretty hard at those slight losers or break even jobs. I would much rather the day cost me $300 than $1000. If its that bad, you have to start considering how to minimize your losses until it gets back to normal.