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When someone asks..."Is that the best price you can give me?"

Discussion in 'Sales, Marketing, Pricing Etc.' started by Speedsterbeast, Feb 13, 2019.

  1. equippaint

    equippaint Very Active Member

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    I like to know other pricing but not to beat them. Its a gauge of how were running. If We can make money selling something at $100 and others need to get $150, I want to be at $150. In reverse, if I need $150 and everyone else can make money at $100, then I need to adjust my production methods or volume because were doing something wrong.
    Additionally, if were running an efficient shop, I dont want to be “punished” for it either. Same reasoning is behind charging flat rate at auto repair shops.
    It would be great if signcraft published times and material costs to do jobs rather than pricing. Then you could just plug in your numbers and also know where youre at production wise. Similar to alldata in cars.
     
    • Agree Agree x 2
    • I Appreciate You I Appreciate You x 1
  2. TimToad

    TimToad Very Active Member

    There are so many overhead variables that affect pricing that it often is a hard thing to both keep up with and quantify our place in the pricing universe once we venture away from our own internal calculations. That's why the only time we concern ourselves with what others charge is when it's inadvertently brought to our attention that a competitor is dramatically underbidding the market and is affecting how much masses of customers perceive those aberrations as the "going rate".

    Example: Our shop is 2,500 square feet and our rent is about $1.00 per square foot. We have comfort in knowing we have a long term lease and stability in what to expect for our largest single expense per month. Our closest competition has a 3,000 square foot shop and according to what we've learned through knowing several key former employees, they pay far less than $1.00 per square foot without a long term lease. That may have changed when a new owner took over two years ago, but not likely. Is that substantial savings that they can leverage in their pricing due to efficiency, skill or proficiency? Nope, they have a landlord not up on what the local commercial/industrial rental market is.

    We also know that on average, we pay several dollars per hour more for similar labor skills and job duties. We're not learning these things by sending secret shoppers in, or posing as customers with mock jobs to get quotes on.

    So, a couple of major factors like rent and labor costs can have quite an impact if you're not convincing your clients that your higher prices are justified and why.
     
  3. Gino

    Gino Premium Subscriber

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    That's all horse pucky. Nobody in the world cares for yours or anyone else's explanation of why your rent is 15¢ a square foot more or less, nor who uses more electricity or pays higher taxes. The bottom line is the bottom line and I don't think, other than 'good friend type customers'..... that stuff is ever discussed. Sure, it all makes sense, but if you hang that kinda sh!t on your customers' noses, they're just gonna flick it right back at ya with a dumb stare as they walk out the door.

    If I cried about my employees, rent, taxes, equipment, insurance and whatever else you tell them is higher because of whatever.... they'd think I was nuts. That's nobody's business anymore than than where I go to church, how I spend my weekends or who I just voted for. The insignificant numbers which make up your overhead are your business and yours alone. If I walked into a restaurant and asked why their prices were higher than Sebastiano's, across the street, it sure ain't because the rent is higher or they have a better landlord. If they went into that song & dance, I'd walk right the heck out. Nothing I dislike more than liars and cheats, but crybabies is running a close second.
     
  4. equippaint

    equippaint Very Active Member

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    Not sure about everyone else but labor is our largest cost by far. It’s expense is directly corelated with time. Too many people get fixated on controlling basic expenses like where to buy ink the cheapest or hiring a guy at $15 vs 15.50. While that matters, that is not what will make or break you. Overhead is important to work from but jobs need to be managed by how long they should take vs how long they actually take and work towards getting it where it should be. Another thing with o/h is how many billable hours are you basing it from? Thats also important.
    Ive had $12/hr laborers here that take 20 hours to do the same job a higher paid guy can do in 8. That turns the $12 into $25/hr and they become the most expensive person in the shop. Many people dont pay enough attention to that.
    If your rent is 2k more a month than the next guy its only adding 15/hr for 1 person, 3/hr if you have 5. Not a major deal in my book.
     
  5. TimToad

    TimToad Very Active Member

    I'm assuming you're responding to my post.

    First of all, who said we share anything about how we base our pricing on with our customers?

    This ain't the unmoderated thread where you have cover to insult and try to flame people, so watch your mouth old man.

    PLEASE.... PLEASE....... PLEASE........ Once again and for all time. Pass over and ignore those you disagree with.
     
    • Like Like x 1
  6. Gino

    Gino Premium Subscriber

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    How quickly we forget what we wrote just 2 hours ago. Maybe you oughta stop taking so many gummy bears a day ?? Your intake is really starting to cloud your memory.... or what's left of it. Yeah, I might be an old man, but I know it. However, I don't walk around like you...... in a buzzed state like some 14 year old.



    Does this look familiar, toadster ?? Would you like someone to explain what you wrote ??

    What a piece of work................... :doh:
     
  7. Gino

    Gino Premium Subscriber

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    Oh, and by the way mr toadster..... where was I insulting or flaming ?? I was merely speaking the truth and happen to believe what you wrote is garbage. Is that wrong ??

    Seems like you were doing the insulting and name calling.
     
  8. TimToad

    TimToad Very Active Member

    FFS...... The "Why" that we tell the customers is that we do great work, use only good materials and offer great service.

    For a guy who is constantly referring to his alcohol intake, you might want to look in the mirror before judging anyone else on what they put in their body.
     
  9. TimToad

    TimToad Very Active Member

    You're so addled and quick to jump on everyone else, you don't even see what you post.

    "Nothing I dislike more than liars and cheats, but crybabies is running a close second."
     
  10. Johnny Best

    Johnny Best Very Active Member

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    "Nothing I dislike more tan liars and cheats". I had to laugh when I read that. My wife uses that exact same saying.
     
  11. Texas_Signmaker

    Texas_Signmaker Very Active Signmaker

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    I don't need to "convince" people about why my prices are higher... my actions speak louder than my words.
     
  12. binki

    binki Premium Subscriber

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    We have a couple of customers that don't buy that much but always ask for discounts because they buy a lot from us. We just tell them they are already getting the discounted price. Most of the time when we are told they can get it somewhere else for less we let them know to go there if they want to but don't expect the same quality we do. About half stick with us. Some of the others buy it from us after they get it from the first place.

    I did have one guy come in to buy a stock hat and offered me $3 lower than the price on it. I told him this is a real business, not a flea market. He left.
     
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