Is this too Cheap??

[splizaat]

Hey guys... Curious where YOU would be on this combo for WHOLESALE customers.

Oracal 3951GRA Rapid Air
Oracal 290 or 293 Laminate (same price)

Customer says his previous supplier charged him $6.75 a square foot printed and laminated with the above materials.

We have the option to buy both materials 30" wide in 30ft or 150ft rolls. My cost is the following with full coverage:

If 30" x 30ft Rolls = $2.74 sq ft with Full Ink Coverage Laminated
If 30" x 150ft Rolls = $2.08 sq ft with Full Ink Coverage Laminated

These figures are materials only.

Obviously, I'd rather buy 150 ft rolls...but even then, is $6.75 a sq foot about right for wholesale or is that too cheap? Customer would be placing about 4-6 orders a month around 4.25 square feet each order (I'd require at least two orders at a time to hit our shop minimum). I realize this is SMALL for a wholesale order...I think this COULD potentially turn out awesome so I want to work with him, but right now not sure what to do.

Thanks for your input.
-Matt

 

[splizaat]

Should also mention that all artwork is print and cut ready with bleeds and cut contour lines for versa works...download, print, outgas, laminate. No artwork to fiddle with as customer has been sending print jobs to his previous guy print ready.

 

[john1]

Honestly man, I'd pass on this order. If hes ordering that little each order and wants it for $6.75 it's really not worth it IMO if you have to stock something out of the norm.

Yeah you will make some money but him promising X amount of orders a month to me is a scam to get a cheap price based off unrealistic monthly orders. I say see these orders first then drop to $6.75. There is a reason why he isn't using the original person who quoted him that....Wonder why?

 

[SightLine]

Need to move this to the premium section.... regardless I'm not going to try and compete with some of the internet wholesalers. I'd be considerably higher myself....

 

[splizaat]

He moved here from another state and needs a new local printer for his business. It's an internet business he runs. The whole thing for me is that I operate out of my house with low overhead and my printer isn't running but a few hours a day, so if I can keep it running, it MAY be worth it....am I being dumb?

Premium section never gets enough replies IMO. So I posted here with general population

 

[john1]

Matt, i am licensed to run out of my home as well but i don't use that as an excuse to take anything i can get for example.

If i have to order lets say $400 materials for a job and up front i won't be even breaking even on it (breaking even is bad anyway), no way would i take the job just because hes saying he will do X amount of orders per month. It's a game to get a low price initially by promising future work. I have learned many times you CANNOT take someones word for anything, You give someone a inch, they will take a football field and screw you.

Maybe you can use material you will use for others jobs that's closer to your normal material stock and meet his PSF pricing that he wants. This way you will use the materials and not have it sitting around just for his and waiting to get the rolls paid for since hes ordering such a small amount. Depending on what the jobs are being used for those materials may be a overkill.

Sometimes you have to decline work man, It's business.

 

[splizaat]

Any suggestions on where you guys would be with the given scenario price wise to wholesale would totally be helpful too

 

[Salmoneye]

Crap job unless maybe they were placing all 6 orders at the same time. Lay out the $$$ for storing material, holding costs, waste in front of and behind the print, do you have to re-web your laminator or do you laminate by hand, taking the order, invoicing, what if there is a printing error or you have a piece of dust etc.. in the print and have to re-print, you haven't figured in your overhead, labor, depreciation, warranty of your product... ... the list goes on and on. Charge your shop min for each 4.25sf and make money, that price might be ok if you were doing 100sf at a pop. He doesn't use the old guy because his printer probably got repossessed.

 

[splizaat]

true. Just calculated this out... per kit after cost of just materials only, i'd be making $17 lol. Not including electricity, man time, reweb laminator, etc.

I'm thinking at $13.70 a square foot, minimum 2 kits it MIGHT be worth it now that I look at it. That'd have me making about $47 profit per kit....

 

[MikePro]

4.25sq.ft. per order at wholesale?!? that's nuts that you're even considering this. how can you even afford your premium subscription?!? lol

you've gotta have some sort of short-run pricing, otherwise you're going to get nickle and dime'd to death... heck, you burn nearly just as much material just loading the printer/laminator.

...and why do people keep wanting to discuss pricing in open forum, when potential clients can just as easily google your posts? admins won't let me say <insert obscenity> without infraction, but apparently they've started to look the other way when it comes to these kind of topics...
just my $0.02.

 

[cdiesel]

He's saying to charge the shop minimum for the order (4.25sf), not $4.25 per sf. That's what I'd do. We run $75 for wholesale customers as a minimum.

 

[MikePro]

it is just running a printer, so to speak. but you're on the hook for misprints, maintenance, overhead, and dealing with the guy in general.
I wouldn't even drive down the street for $17... especially when the government takes 30% of that on top of it all.

 

[splizaat]

Yes I'd require him to run $50 minimum order. His kits typically run 4.25square feet so he'd need to send two at a time to meet our minimum of at least $50

PS - this feedback is REALLY helpful. Thank you guys, keep it coming.

 

[CheapVehicleWrap]

THIS is how I would deal with someone for the money involved....




"I'll take 2 packs of Marlboro red 100's box please."

 

[MikePro]

2 packs of Marlboro red 100's box please.

now THAT's cheap
shop minimum... 2 cartons.

 

[JoshLoring]

Our shop minimum is 100$ for digital. Too much time involved in lam print cut.

 

[spm]

Calculate your overhead cost into an hourly rate, Find out how long it would take you to do the job. Add your Material cost. Then Add what you want in profit. Remember, don't over look the small jobs, cause they can turn into to Large jobs.

Stack them Quarters, Eventually they turn into to DOLLAR$.

 

[Flame]

Calculate your overhead cost into an hourly rate, Find out how long it would take you to do the job. Add your Material cost. Then Add what you want in profit. Remember, don't over look the small jobs, cause they can turn into to Large jobs.

Stack them Quarters, Eventually they turn into to DOLLAR$.

Maybe if you work out of your moms basement with a 24" cutter(it's humor, don't take it personal). Seriously, most small jobs are a utter waste of time and end up costing you time you could've spent on a better paying job.

Learn to market yourself to jobs that you do well, and you can charge well on, and focus on them, not the ones that waste your time. JMHO. Not saying we can't all do that single 18x24 job here and there, but I know the best thing I EVER did for MY business, was to cut out the small stuff.

 

[allamericantrade]

Need to move this to the premium section.... regardless I'm not going to try and compete with some of the internet wholesalers. I'd be considerably higher myself....

Being this form is searchable, If your customer google's your name he will have your costs as you posted

My cost is the following with full coverage:

If 30" x 30ft Rolls = $2.74 sq ft with Full Ink Coverage Laminated
If 30" x 150ft Rolls = $2.08 sq ft with Full Ink Coverage Laminated

These figures are materials only.

Obviously, I'd rather buy 150 ft rolls...but even then, is $6.75 a sq foot about right for wholesale or is that too cheap? Customer would be placing about 4-6 orders a month around 4.25 square feet each order (I'd require at least two orders at a time to hit our shop minimum).

I'd really consider moving this to premium. Can't see it being to wise to give that possible chance

 

[spm]

Flame: No doubt, but I have done I a lot of small jobs when I first started that have now turned into great repeat customers. Those customers were small business people like me and we have both grown successful together.

It's not just business all the time, you start business relationship with your customers.