I just did a new sketch for a fast growing realty in my area. They were using 4x8 site signs comprised of straight - thin helvetica copy. They asked me for a quote and I used the 3 tier pricing method. They loved the high end design and now want to know if the price per piece would be any lower in quantity.
They want to order 6 double sided 4x8's right away. They will be moving into another area with a new office and they want me to do all their work for that office as well. I've dealt with one of the head honchos before and she was impressed with my work in the past. I know they are not blowing smoke.
I know I can save vinyl by batching them up, but how far beyond that do you go for mutliples considering the absence of more design time?
Thanks
Posted by Dan Sawatzky (Member # 88) on :
Dave
I'd give them a discount for volume... but not a penny for promised volume or promised business in the future.
If you fall for that old line you certainly wouldn't be the first.
A discount at out place is awarded on signed contracts only and generally for orders over $500,000 with a 50% deposit up front.
-dan
Posted by david drane (Member # 507) on :
Dave, by doing quantity you still have to take the same time to do each sign. As you say there is only a one off design fee so it would be possible to reduce them by about 5% and then tell them that the new price does not include delivery, and I am sure they will come around and the extra profit then goes into your own pocket. Remember the old saying- "What you lose on the swings, you pick up on the merry go round". Posted by Fred Weiss (Member # 3662) on :
I would consider more of a discount than suggested by Dan or David. Here's why:
1. Batching of vinyl (already mentioned) 2. No additional design time (already mentioned) 3. Reduced application time from figuring out your placement from the first application. 4. No additional sales time. (Doesn't count if you are employing a commissioned sales rep). How much time will it take you to sell 5 signs of the same value?
Posted by Randy Campbell (Member # 2675) on :
Dave opinions are cheap and my 10 cent one is if they sign a contract like Dan said and only for more than 15 boards at 10%.
Posted by Monte Jumper (Member # 1106) on :
You are getting good advice here...I'm just going to add my approach (not that far off what you have already heard)
I discount ONLY if I have a contract for a given amount and I charge full rate for the first, including the design and sales time (what ever that may be) the second is discounted at the rate I think I will save time by "ganging" the job.
Remember your supplier won't discount you any more on the materials so the only thing you have to bargain with here is your time.
If they seperate the contract by doing say 6 at a time and then repeat 6 at a later date charge "full' on the first then discount the remainder based on what you learned the first time around...this is the price they pay for not giving it to you all at once.
All of this seldom works into more than a 10 percent discount but could run over slightly.
Interesting note...they waited til you figured the first sign before the dangled the "carrot" for multiples...sounds like they know how to play the game...don't let them "write the rules" it would have been far easier to figure this job had you known going in there were going to be multiples.
The rest is up to you ...good luck!
"Werks fer me...it'll werk fer you"
Posted by dispatch (Member # 1053) on :
Is there a different value in an additional copy of a sign?
If anything, it may raise the value of the entire set, including the ones already made and installed! The more people see their sign, and start to recognize it more and the increased recognition should yield incresed sales. Otherwise it wan't worth doing in the first place!
If the McDonalds chain had a different looking sign on each store, wouldn't it decrease the overall effect?
So the more of those wonderful redesigned signs that you make for them are installed, the more that EVERY one is worth, but as a good customer, you won't charge them for that!
So even without taking off penny from the price, they are getting a discount.
All that said, I would probably be discounting additional copies somewhat, based on volume. Posted by Lotti Prokott (Member # 2684) on :
Bob, if I was your customer this line wouldn't impress me too much... reminds me of a customer who told me I should probaly give him a discount for the oportunity to display my work in such a prominent place, and I know he was halfway serious, ha ha. I agree with Fred on this, and a happy repeat customer is probably worth the few dollars discount.
Posted by Mike Pipes (Member # 1573) on :
"Buy XX amount and get the Xth at a discount"
This way, you are quaranteed to get paid the full amount for each sign whether or not they have you make all of them at the same time, but they can still get a discount on just the last one. Knowing they can get a discount after they have so many made will keep them coming to you, and if they don't, well you still made the full amount instead of a discounted price.
Posted by Checkers (Member # 63) on :
Hiya David, I wouldn't hesitate to give him a discount of 10-20% if these were knock-out(quick) signs with the same layout, IF, he pays in full up front for all 20 of them. It really depends on your situation though. How do you base your pricing structure? I normally stock 10 yd rolls of vinyl. If I buy a 50 yd roll, it's like buying 4 rolls and getting the 5th one free. Some of my suppliers give me discounts if I order in quantity or pay cash, usually 1-2%, sometimes more. When I have the space & I'm set up correctly, I could prep for and letter 5 duplicate signs in the same amount of time as it would normally take for 3 unique ones.
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