Digest 18, originally sent Sat Jul 17 01:10:25 1999
There are 3 messages in this issue.
Topics in today's digest:
1. Pricing question
From: BillH01@xxx.xxx
2. Re: Pricing question
From: "April Sparr" <april@xxxxxxx.xxxx
3. Re: Pricing question
From: Donna/REgina <starcreations@xxxxxxxx.xxx.xxxx
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Message: 1
Date: Fri, 16 Jul 1999 08:21:36 EDT
From: BillH01@aol.com
Subject: Pricing question
Here's another classic question: How much is enough?
We're establishing a relationship with a local gift shop that has for years
been the best place to buy crystal, china, etc. They're coming to us for
"specials" that don't fit the usual mongrammed glass stuff they can order
from their catalog sources.
They called us yesterday and asked if we could do a rush order on crystal.
They gave us 2 pieces and the text that the customer wanted. We had to set
the text using Corel and then do the usual magic: expose, wash, blast, clean,
etc. The text ends up being pretty small because of the area and we've chewed
up too much time making sure we don't blow out the a's 9's and such while
still giving them a really good looking job - work is going to a national
convention for presentation to commemorate an anniversary.
In terms of material, we're not using much: 1/2 sheet of resist and vellum.
Time. Way too much time in composition. How much can we fairly charge? The
retail price of the object is $80.00.
I'd love to hear some feed back on this one. How do you folks arrive at fair
pricing for your work? Thanks.
Bill Herrick
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Message: 2
Date: Thu, 16 Jul 1999 08:34:46 -0800
From: "April Sparr" <april@xxxxxxx.xxxx
Subject: Re: Pricing question
From: BillH01@aol.com
>
> Here's another classic question: How much is enough?
>
> We're establishing a relationship with a local gift shop that has for years
> been the best place to buy crystal, china, etc. They're coming to us for
> "specials" that don't fit the usual mongrammed glass stuff they can order
> from their catalog sources.
>
> They called us yesterday and asked if we could do a rush order on crystal.
> They gave us 2 pieces and the text that the customer wanted. We had to set
> the text using Corel and then do the usual magic: expose, wash, blast, clean,
> etc. The text ends up being pretty small because of the area and we've chewed
> up too much time making sure we don't blow out the a's 9's and such while
> still giving them a really good looking job - work is going to a national
> convention for presentation to commemorate an anniversary.
>
> In terms of material, we're not using much: 1/2 sheet of resist and vellum.
> Time. Way too much time in composition. How much can we fairly charge? The
> retail price of the object is $80.00.
>
> I'd love to hear some feed back on this one. How do you folks arrive at fair
> pricing for your work? Thanks.
>
> Bill Herrick
Bill,
Unless you are the retailer, do not worry too much about price. The
value of the item is upheld at the wholesale level. A solid pricing
structure comes form a rigid wholesale price. Retail prices can
fluctuate from region to region. Discounts can always be given on
suggested retail pricing. Discounts will not adversely affect the
pricing structure; however, they will affect your profit margin. You
never want to demean the value of your product or service by
pricing too low, thereby undermining the value and profit of the
product.
There are some rules, or industry standards, to follow. Realize that
these may vary from low, medium, and high end pieces, and that
there is a regional aspect to what we do.
Single Unit Pricing: Pricing for single items, or "onsie, twosie"
jobs is very different than multiple unit production pricing. On low
end pieces such as mugs, you will end up doing a lot of busy work
for low profits. The way to get around this is to establish a
company minimum order policy and or have a set-up fee. This will
keep you from wasting valuable time and material. If you find that
you do have a market for small jobs like these, have a minimum
carving fee per piece. This price should stay in effect until the order
reaches a certain dollar amount at which time you should revert to
the multi unit pricing structure.
Multi Unit Pricing: The national average for making photomasks
and blasting them is currently 50 cents per square inch on
production jobs. As a rule of thumb, double the price of the glass
blank (include the cost of shipping to you). For a multiple piece,
single stage carve pricing example. Custom pieces, stage carves,
or work on a minimal number of pieces (5 or less) are not
considered in our structure. For example:
| Example #1 |
|
| Glass blank purchased at $25.00 (Doubled) |
$50.00 |
Mask & Carve a 12 sq. inch
area @ 50 cents per sq. inch |
$6.00 |
| Wholesale Price |
$56.00 |
| Retail Price (Wholesale Price Doubled) |
$112.00 |
| Example #2 |
|
| Glass ($5.00) + Shipping (50 cents) = $5.50 (Doubled) |
$11.00 |
Mask & Carve a 9 sq. inch area
@ 50 cents per sq. inch |
$4.50 |
| Wholesale Price |
$15.50 |
| Retail Price (Wholesale Price Doubled) |
$31.00 (possibly offer a 15% discount) |
Custom Pricing:
Double the blank, charge $1.00 per square inch.
For example, a 10x12 granite piece may cost you $20.00.
You do a 8"x10" (80 sq. inch) carve @ $1.00 per sq. inch
= $40.00 + $80.00 = $120.00 wholesale, $240.00+ retail.
Perceived value is a large factor. There is no problem with a totally
unique piece having a totally unique price.
For Pieces Brought In: For production jobs: 50 cents per sq.
inch. Use a handling charge to reclaim some of the money that
would have been made on the glass. Be sure to communicate a
disclaimer for handling pieces brought to you stating that you do
not take financial responsibility for it if something happens: a verbal
is legally binding - should do it in writing.
Corporate Awards: 7-9 time markup.
See www.rayzist.com/Blanks/Wholesale/toc.htm
"Flat Glass" for examples of these types of items.
We offer a retail price list on these items to give you guidance for
pricing if you are interested.
If you are not using SR2000™ photo resist film, you will notice a
huge time savings during production jobs.
I hope this helps all of you and welcome your feedback.
Best Regards,
April Sparr
Rayzist Photomask, Inc.
www.rayzist.com/800-729-9478
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Message: 3
Date: Fri, 16 Jul 1999 13:00:04 -0600
From: Donna/REgina <starcreations@xxxxxxxx.xxx.xxxx
Subject: Re: Pricing question
April,
You did a nice price quoting on the photo resist.... And just in passing
you mentioned the possibility of stage carving....Example.... we are
thinking about doing a project of 24" X 24" 3/8" 1/2" bevel Saphire
glass. The glass is around $120.00 itself.
Also one other question...People do shower doors and my understanding
that it is $8.00 a square foot? For just frosting... What about a
project of one inch lines? That has masking and resist in that??? What
would people charge for that???
Thanks REgina
Star Creations
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