MAX Metal

[JMPrinting]

Hello All.

I started my business about 5 months ago and still find myself calling competitors for pricing. The problem is I price my sign too low. Is there a rule of thumb for pricing? Just wondering what my material markup should be for a job? I price cal vinyl at $8 per sq ft and cast at $12. If a piece of MAX Metal cost me roughly $65 plus $5 shipping with grimco what should my markup be to be fair? I called a competitor that charge $225 just for the metal. That seemed high but maybe that's right? Right now I'm marking up 50% on material and substrate Thank You!

 

[2B]

first off it is NOT advised to post the prices on the open forum, there are PLENTY of sections that can only be viewed by logged in members or in the premium section

back to your OP, there are HUNDREDS of threads on how to price out products.
the search function is your friend to most of your answers.

Don't forget your time is money and all the time you spend in designs, commuting, talking to customers (potential/current), etc... it all MUST BE taken into account.

It boils down to the point are you looking at this as a hobby or are you looking for a business that provides for your family.
you area also plays a BIG factor in what you charge.

if you charge too little you are ALWAYS be busting and never getting ahead.

 

[James Burke]

Hello All.

I started my business about 5 months ago and still find myself calling competitors for pricing. The problem is I price my sign too low. Is there a rule of thumb for pricing? Just wondering what my material markup should be for a job? I price cal vinyl at $8 per sq ft and cast at $12. If a piece of MAX Metal cost me roughly $65 plus $5 shipping with grimco what should my markup be to be fair? I called a competitor that charge $225 just for the metal. That seemed high but maybe that's right? Right now I'm marking up 50% on material and substrate Thank You!

Calculating costs can be a tricky endeavour, and should be based (first) on your overall costs of owning and operating a business...not what your competitors are charging. This usually means "working backward" from an annual budget of ALL your expenses (to determine your hourly operating cost).

This gives you a starting point that can then be adjusted accordingly, based on your competition, future equipment needs and so on.


JB

 

[Pat Whatley]

50% markup won't keep you open on stuff you're actually manufacturing.

A safer (very simplistic) bet, as a minimum, is:
33% for overhead
33% for material costs
33% for salaries

(again, very simplistic but it's a good starting point)

 

[James Burke]

50% markup won't keep you open on stuff you're actually manufacturing.

A safer (very simplistic) bet, as a minimum, is:
33% for overhead
33% for material costs
33% for salaries

(again, very simplistic but it's a good starting point)

And you might just as well throw in another 33% for our favorite uncle while you're at it.

 

[JMPrinting]

And you might just as well throw in another 33% for our favorite uncle while you're at it.

I was thinking the same thing...