What's the general rule of thumb for marking up your product when another sign co. has called you. Would you jsut mark it up as if it were a customer. This sign shop has had a long term customer that is in need of new signage (backlit). I generally mark up my product using the x 1.667 approach. Giving a sign co. a quote, they already know the approx. price of material. How would you mark it up?
Posted by Mike Pipes (Member # 1573) on :
Establish your retail price, then give a discount off that - whatever you are comfortable with offering while still making money on it.
If you figure out your retail price and learn you can not make money if you offer a discount, that means your retail price is too low.
I've been digging into MSRP, Distributor and Wholesale pricing quite a bit lately because I have some automotive accessories I'm bringing to market. Luckily I have a good working relationship with other accessory manufacturers that let me pick their brains for help. Posted by Doug Allan (Member # 2247) on :
I base the discounts I offer another shop on a few factors.
If the other shop has a product or service that I buy from them, I take their pricing into account.
If they have been buying from me with some consistency.
IF the current job has a liklyhood of becoming a repeat order.
If they eliminate much of the legwork, sales drama, & the layout/revision/approval process that is where the most discount comes in. actually it's not a discount then... just a service you don't need to sell them, but usually have to include for your other customers of the same product.
Posted by Bob Burns (Member # 268) on :
I charge full retail to everybody. But, for digital, I don't charge a setup for other shops. I let THEM get THAT profit. I also farm out all my installations to other shops. They charge me RETAIL and I mark it up. This way there is never anything "out of balance". Since I'm not a wholesaler, I cant see charging wholesale. After all, my competitors are my "competition"!
Posted by Rodney gold (Member # 4065) on :
did you know (Rodney's believe it or not): The phrase "rule of thumb" comes from some law that you could only beat your wife with a stick less than or equal to the diameter of your thumb
![[Smile]](smile.gif)