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Need some help with pricing
- Thread starter Shock40
- Start date
ucmj22
New Member
there is no good way to do it that is going to work for any quantity. think about it this way. even the dumbest little decal will take you about 30 minutes to get out the door from start to finish so really you should be charging 30 min labor plus retail on material. That would be the only way to make money.
In all honesty I don't use a method for pricing cut decals. They're a pain in the ass, some take ten minutes to pick for one - some take 3 seconds. I look at the sticker and spout out a number that I feel is worth it for me. With cut vinyl - your cost is basically pennies, what you are charging for is time at that point.
Bradster941
New Member
Even if your just using a 16” roll, your still looking at
44”, lets call it 48” x 1.3 feet of material, (vinyl and mask).
= 5.2 sq ft.
This (total), should be paid for. Since they are 3” high, you could give the customer an extra set out of the media used.
So, even at $10 / sq.' , that will put you above a $45 shop minimum.
.
44”, lets call it 48” x 1.3 feet of material, (vinyl and mask).
= 5.2 sq ft.
This (total), should be paid for. Since they are 3” high, you could give the customer an extra set out of the media used.
So, even at $10 / sq.' , that will put you above a $45 shop minimum.
.
MikePatterson
Head bathroom cleaner.
We have a $25 minimum for cut vinyl. $35 minimum for printed stuff.
It cuts down on the kids wearing me out over copywrighted decals for their windows that I wont cut anyway. Plus you have to cover your wasted material and other shop expenses.
Now that I think about it I should really be charging $65 minimum. Because most of my customers burn at least an hour of my time for some 6in POS "sticker" they just have to have.
I am getting more and more grumpy the older I get.
It cuts down on the kids wearing me out over copywrighted decals for their windows that I wont cut anyway. Plus you have to cover your wasted material and other shop expenses.
Now that I think about it I should really be charging $65 minimum. Because most of my customers burn at least an hour of my time for some 6in POS "sticker" they just have to have.
I am getting more and more grumpy the older I get.
Kevin-shopVOX
New Member
Yes you should absolutely be charging that. There is nothing wrong with having a shop minimum in fact it is good practice. It pays you well for the nickel and dime jobs that still take just as much time (customer interaction, getting the media, setting the file up, cutting, weeding, collecting cash, time away from real money making jobs etc etc.) to do if it was a higher $ job. I personally think its absurd that a store owner that has an overhead burden rate (what it cost you just to turn your lights on) between $45 of $125/hr dollars sells anything for $15 or $25. It just doesn't make sense as you are not relaying value on your time, shop, employees nor equipment. Tell them they can have 1 for your minimum or multiple copies of the SAME THING that warrants your shop minimum. Either way your are increasing your ticket average and making it worth your time or they walk and you have more time to focus on better or jobs or getting and keeping better customers.
Just Another Sign Guy
New Member
I think if everyone was completely honest with their time they would have a new appreciation for shop minimums...which in my opinion should be 1 hr but even if your policy is a half hour minimum I think many people fail to consider what it really takes to do those nickel and dime jobs.
if you take into consideration the time it takes to take the order, write it up, fill out a job form..whatever your process is (minimum 10-15 minutes)
produce the job (this one for example cut, weed, tape) 10 minutes
print out an invoice, call customer, put away stuff another 10 minutes.
that's assuming everything goes right, the customer doesn't talk your ear off, etc. no follow up, accounting, etc.
in today's market even a home based business should be charging AT LEAST $65 per hour.
if you don't value your own time..no one else will either.
if you take into consideration the time it takes to take the order, write it up, fill out a job form..whatever your process is (minimum 10-15 minutes)
produce the job (this one for example cut, weed, tape) 10 minutes
print out an invoice, call customer, put away stuff another 10 minutes.
that's assuming everything goes right, the customer doesn't talk your ear off, etc. no follow up, accounting, etc.
in today's market even a home based business should be charging AT LEAST $65 per hour.
if you don't value your own time..no one else will either.
Kevin-shopVOX
New Member
Well said. The rest of the post was too but this part is vastly misunderstood by so many in our industry.
(time cost + materials cost x shop markup) + design cost = price
time cost = employee(s) time x employee wage(s)
shop markup = your call, should cover your overhead and give you a margin you can live on, usually 1.5 (150%) or higher
design cost = can of worms, another thread ;P
materials cost = obvious; vinyl, ink, tape, etc.
That's just a baseline but typical. Should also have shop minimums in place for final price (and for design price really, as part of design cost...).
However, some shops like:
(hourly time x shop rate) + design cost = price
In which case:
shop rate = the amount you (owner) need per hour to earn a living after ALL expenses
hourly time = total time in employee hours for the project
time cost = employee(s) time x employee wage(s)
shop markup = your call, should cover your overhead and give you a margin you can live on, usually 1.5 (150%) or higher
design cost = can of worms, another thread ;P
materials cost = obvious; vinyl, ink, tape, etc.
That's just a baseline but typical. Should also have shop minimums in place for final price (and for design price really, as part of design cost...).
However, some shops like:
(hourly time x shop rate) + design cost = price
In which case:
shop rate = the amount you (owner) need per hour to earn a living after ALL expenses
hourly time = total time in employee hours for the project
Gino
Premium Subscriber
I think this is the part you're all missing. He's doing this on the side. Evidently, he has nothing invested.... at all.
My question would now be.... is this your boss's vinyl.... your boss's machines.... being done on company grounds, but just after hours...... OR
are you the boss and doing this on the side and not running it through the books. You're a newbie, so it helps if you explain yourself first, instead of us pulling teeth to get your to talk.
I'm working out of my home workshop right now with low overhead so I go with approximately (Materials+machine time x 2) + Design/installation time. When/if I can open up a shop down town I will probably be able to bump it to Materials+machine time x 2.5) + Design/installation time. My minimum right now is $25 but I rarely have minimum orders since i don't have a storefront for people to wander into and want "stickers for thier cars".
MikePatterson
Head bathroom cleaner.
If you don't start treating your business like a business, even though it is in your "home workshop". You will never be able to get into that storefront down town. You will have already trained your customer base to expect your pricing structure and they will not let you go up on them, even if your overhead goes up. As soon as you jack your prices up to cover your new overhead they will seek services elsewhere just because they feel like your over charging them for the same product they got for less from you before.
Hi all, I am a little late to this conversation but I wanted to show you my solution to the price question. Since you have to do this for every project, I figured I would try to automate it a little. The below link is my "Auto Price" spreadsheet that will help you understand the cost and the markup of your material. Just download it and follow the instructions. Let me know what you think!
Automatic Pricing Spreadsheet:
https://docs.google.com/spreadsheet/ccc?key=0AkUr1f2rykU4dGNKd3FtWjJJTUhPbkNYTnhyc2NvOFE&hl=en_US
Automatic Pricing Spreadsheet:
https://docs.google.com/spreadsheet/ccc?key=0AkUr1f2rykU4dGNKd3FtWjJJTUhPbkNYTnhyc2NvOFE&hl=en_US
