I'm quoting out some signs for a construction company, and I can't quite figure out how to figure out the shipping.
The customer knows that I am having the signs screened by a vendor, so I ain't worried about that issue.
Do I average out the price and add it in a per piece to the quote, or should I do a third line item for shipping. 1 is the signs, 2 is the step stakes, 3 the shipping?
Is there any advantage / disadvantage to having a separate line item or adding it to the cost?
Thanks, Mark
[ September 11, 2006, 06:39 PM: Message edited by: Mark M. Kottwitz ]
Posted by Dave Grundy (Member # 103) on :
That's the way I do it Mark..Shipping is a seperate item.
Posted by Steve Luck (Member # 5292) on :
Hi Mark, I just include the shipping in the final price and indicate on the invoice that price includes shipping. If they are that interested, they will ask, but I haven't had anyone ask yet!
Why give them an opportunity to complain if it is itemized? I usually give them the price first before doing the job and try to get a deposit if it's over $100. I've been stung a few times by being too trusting.
Good Luck!
Sign-cerely, Steve
Posted by Michael R. Bendel (Member # 5847) on :
Don't show the shipping costs unless requested. It just brings up the unnecessary questions, "Oh you don't do that here?", or "Could you include the shipping if I order now?"
It's an expense, I say include it in the final price with all the other costs unless otherwise requested.
Posted by Tim Whitcher (Member # 685) on :
If I were to do this, I'd rather be up front with the customer and have the shipping listed seperately. Otherwise, how would you justify having to charge extra (second day, over night) on a rush order if you just figure it in to your "per piece" price?
Posted by Mike O'Neill (Member # 470) on :
I wouldn't show a per piece price at all
Item description would be "500 signs blah, blah, blah..." with one price which includes shipping
Customer has to understand that you are pricing a single job, not 500 little ones.
Your pricing will be based on "landed cost" (ie. to your door) times whatever margin you need to work with. I would never break out the shipping cost to show a customer, his only interest is bottom line cost, don't blur the issue.
[ September 12, 2006, 07:27 AM: Message edited by: Mike O'Neill ]
Posted by Mark M. Kottwitz (Member # 1764) on :
Thanks guys.
I can see the advantages of both ways.
My customer has been to my office, and he knows that I am getting set up and don't do screen printing. Not that its a big deal, hes a price shopper. He just wants the best price, and if someone comes in .02 cheaper, thats where he's going to go.
Posted by Jill Marie Welsh (Member # 1912) on :
I never itemize my invoices, except maybe for a set of changeable letters or some step stakes. Mine would just say: 500 18"x24" signs @ ($XX each) listing the price you came up with that includes shipping, screening, whatever. The Mikes are 100% right if you ask me. I also never list materials costs or labor times unless it is required in a bid. love....Jill
Posted by Mark Matyjakowski (Member # 294) on :
If it's the shipping from the vendor to you, it isn't your customers expense ... it's yours. I'd figure it in (high) in the per piece price. I'm sure you don't have a mark-up line item on the invoice.
If he would walk for 2 cents, let him.
Posted by Checkers (Member # 63) on :
Hiya Mark, As you now realize, there are pros and cons in either way you do it. It depends on the product, but I list everything on the invoice but just give a grand total, which includes the cost of the product(s) and shipping costs. If you're using EstiMate you can select to suppress individual item prices on the estimate. If the client wants an itemized estimate/invoice, I just put FOB origin with an esitmated cost for shipping & handling. Depending on the product, I normally estimate 10 to 15% of the product price.
Havin' fun,
Checkers
Posted by Bob Kistler (Member # 4049) on :
We keep shipping seperate, the one of the things that can happen is they change there mind on expediting shipping time and that changes the whole thing. We had a client yesterday that was buying just a few items and requested 2nd day air. We called them back to tell them that there 40.00 order was going to cost 84.00 to get it there. With it being seperate we didn't have to juggle anything and the client was pleased to change his decision. We also on most regular orders add 10% to the freight to pay the costs for the paper work, labels and ect. We also add the costs of the boxes used. If you don't you'll find you are giving away profit because all of those things have a value. That's why you see a shipping and handling charge on most everything you buy that is shipped to you directly.
Posted by Mike O'Neill (Member # 470) on :
Bob, you are of course talking about shipping charges from you to your customer, and not shipping charges from your supplier to you.
In this case I'm guessing that the customer will be picking up the order.
Posted by Jon Jantz (Member # 6137) on :
I wonder if there isn't a little confusion on what you mean, Mark.
Some are thinking of shipping of the materials (screen printed signs) from the vendor to you, and others on shipping (finished product) from you to the customer. I do it differently for each.
Like has been said, shipping from the vendor to you is absolutely no concern to your customer. It is an expense to you, and should be figured into the overall price of the sign. The customer has no control or say-so in the matter. If you make a coro and vinyl sign, would you show the shipping of the materials as a separate line item? NO.. you figure it as an expense and it's already in your prices. Walmart doesn't show you the shipping cost they have on an item, and they didn't produce it, they received it from someone else already made.
Now on shipping from YOU to the CUSTOMER... I do show this as a separate item. I don't like to ship signs that much, so I figure it fairly high and a lot of times they are like "Hey, we'll be in town Monday, we'll pick them up then." Or like has been mentioned, if they decide to go Overnight, all you have to change is shipping price. It is a matter they have a choice in, so I show it as a separate item.
Hope that makes sense...
Posted by Bob Kistler (Member # 4049) on :
Mike, you are right, I think we are going two directions here. If I'm buying something for resale I have the incoming freight figured in the markup and it is in the quote to my client. I don't seperate that out on customers invoice.
![[Roll Eyes]](rolleyes.gif)