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MDO Price Hike

Discussion in 'General Signmaking Topics' started by zspace, Oct 23, 2020.

  1. zspace

    zspace Merchant Member

    Jul 9, 2013
    Houston, TX
    I received a note from one of my suppliers that MDO prices will increase by as much as 17% on November 1st. I’m considering ways to approach this with customers without sending them on a shopping trip with competitors.

    Anyone have thoughts?
  2. StarSign

    StarSign Active Member

    Sep 20, 2011
    Southern Utah
    If the price goes up for you it will probably go up for everyone. Communicate to your customers.
    • Agree Agree x 1
  3. White Haus

    White Haus Formally known as RJPW..........

    Apr 6, 2018
    Stock up now and extend the savings to your customers. (Just a thought)
  4. MikePro

    MikePro Major Contributor

    Feb 3, 2010
    Racine, WI
    so a $40 sheet is going up by $5?
    I'd be more worried about the price increases if Biden wins.

    Just quote it. You should be upcharging your costs of materials anyways, so existing quotes should still make you money but new ones should reflect the price increase. If your clients are out shopping MDO signs, and competitors undercut you then its on them to price themselves into debt.
    However, if you want to "spread the word" to your clients about the price increase.... maybe offer it as a "discount oreo-cookie". By that I mean, you pad the bad-news, with two layers of good-news.... 1) "got a great deal for you" 2) "our supplier has increased costs of our product by $20" 3) "to offset this, we are discounting our setup/design costs by $21".

    ....and make sure to throw in an "underbody coating" free of charge, of course.
    (and then when they ask you what that is, you reach into your desk drawer and pull out a stick of deoderant... and then apply to your armpits while not breaking eye contact)
    • Disagree Disagree x 1
  5. Yeahgor

    Yeahgor Born to be The Designer.

    Sep 18, 2020
    San Diego, CA
    Oh man, from early morning... no way! :) (LOL)
  6. Pixels Are Bad Mmmkay?

    Pixels Are Bad Mmmkay? Very Active Member

    So a $100 sheet of 1/2" painted MDO goes up 17%. Even if you do as much as a 100% markup on substrates, the cost of a 4' x 8' sign goes up $34. I really don't see the issue. And besides, how many MDO signs do you do? MDO makes up maybe 3% of the signs we put out. It might be different for you, but I still don't see a $34 price increase on a 4' x 8' sign being anything to worry about.
  7. Flint Sign & Neon

    Flint Sign & Neon New Member

    May 17, 2020
    Flint Mich
    Oh sh$t cost of sharpening scissors is coming up!
    • Hilarious! Hilarious! x 2
  8. Jester1167

    Jester1167 Premium Subscriber

    All wood-based products have gone through the roof. Look at a 2x4x8 at your local box store. they are up over 70%.
  9. ikarasu

    ikarasu Very Active Member

    Jun 10, 2016
    Port Coquitlam, bc
    It's almost as if putting a tariff on your #1 source of lumber raises cost for general consumers and is a hidden tax hike on the US population!

    Jk. Not sure if the tarrifs on your most trusted ally are even for this type of wood! (And this isn't a dig at trump... I believe every US president has tried to tarrifs softwood from Canada)

    As other have mentioned though... Just jack up your price.

    What do you guys pay for mdo? We buy a 4x8 double smooth sheet for $55 Canadian($42 usd) a hike sucks... But you should be able to eat the cost without even batting an eye. Which means the customer shouldn't as well.
  10. Joe House

    Joe House Active Member

    Feb 5, 2004
    Early in my career selling sign supplies I had a loyal customer, who I had to give the bad news that the price of his transformers had gone up since he last purchased them. He just smiled at me and said "I don't mind when prices go up. I just mark them up the same percentage and I end up making more money"
    Prices on everything are going up. Mark it up and move on. The extra 15$ you make on this job will help pay for the price hike in dining out. It all goes around and comes back around.
    • Like Like x 1

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