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