Wholesale work pricing, Should i go PSF or do custom quotes?

[john1]

Hey everyone, I had a meeting today with the guy who wanted to join up our businesses so it makes things work for everyone.

We are talking about keeping each others business names and simply sending wholesale work to each other that we can't produce in house so everyone is making money. There is another shop that he knows personally that may be up for this as well which would be great for me.

He gave me a list of materials his jobs would require as he does digital offset printing (business cards, direct mail, postcards, newsletters etc) and doesn't have the ability to produce outdoor durable prints as good as my eco solvent machine. He will be subbing jobs needing banner material, adhesive vinyl, coroplast and stakes for low amounts of yard signs and window perf.

I have all that stock so it's no problem but to make things easier on him i am wondering if i should give him a PSF price for these services or a custom quote with 30% or whatever i want to take off. I currently use graphixcalc software so a custom quote would be easier for me but it seems all wholesalers are giving out PSF pricing.

For the guys doing wholesale and or wholesale/retail, How are you figuring your PSF pricing the best? You can PM me if need be.

Anyone have advice as to what you recommend i do?

 

[FireSprint.com]

I don't even know where to start on the actual price, but I think you need to sell by the sqft with a setup charge possibly. It's really important that your product is easy to sell. I believe that making something easy to sell (and therefore buy) is a key secret to success.

If you have to custom quote everything, it eats up way too much time and doesn't allow your resellers/sales reps etc. quote on the fly. Being able to give a customer a quick quote saves money in itself which I find often makes up for a few cents here and there wasted on flat rate pricing.

Good Luck!

 

[m_s_p]

If you give him a custom quote and a discount it can help him to know the appropriate selling amount.

When I sub out large run full color printing I get a 20% from the printer. I just mark it up 25% and I have a price that is competitive in our market. If you give him a wholesale price he might not know what the market price is and either lowball or lose work by doubling or tripling the price.

Just a thought.

 

[2B]

+1 to both post these is what we follow when doing wholesale

 

[royster13]

From his point of view I wonder how long it will take him to figure out he can get real wholesale prices from a real wholesaler.....

From your point of view why would you do work at a lower margin versus going out and selling your own work at full margin?...Do you spend any time knocking on doors?...Far better in the long run to develop your own book of business than relying on someone else who could take their work elsewhere in the future.....

 

[Locals Find!]

Given the products you describe it sounds like some of it should be flat rate and listed on a price sheet and some should be calculated by square foot.

Coroplast signs and banners can pretty much be priced out in advance as most sizes are fairly standard. Whereas adhesive media would be priced out on a square foot basis with a minimum order dollar amount.

 

[cdiesel]

Straight pricing. If you have to quote every job he sends, you'll waste a ton of your time and have to charge more to offset that fact. Wholesale means wholesale. They know the material, the files, etc. All you do is print. Sure, educate him on pricing, materials, etc, but don't waste your time quoting every job.

 

[john1]

Thanks guys, This company i am working with is a one man shop like myself and we have established a good relationship over the past 6 years. It's working out very well as he wants X% margin on all jobs so pretty much i discount the services X% which works for him very well.

I understand how some guys wholesale but this is a very nice relationship me and this company has, he sends me graphic design work and digital print work and i send him all my print product work (business cards, flyers, postcards etc)

Both business are benefiting as there isn't anyone who doesn't have a digital printer in the area so i don't mind working with this company this way.

 

[FireSprint.com]

Sorry, wrong post....

 

[john1]

huh?