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» The Letterville BullBoard » Old Archives » Tier Pricing....Extremely Successful

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Author Topic: Tier Pricing....Extremely Successful
Jack Davis
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Member # 1408

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I guess I learned this in dealing with some of the larger companies like JCP and Sears, both waining giants of retail, but giants none the less (their buyers, which I worked with for about 8 years gave me a lot of info)....... In Sears case, they always used the good, better and "Sears Best" approach. Cutting through my speal,,,,,the sign business works very well in that same format. My sales approach early on (just a year ago) was to offer my finest signs thinking that the buyer (JQ Public) was wanting/thinking the same thing. I was wrong. They were looking for PRICE. Over the last 6 months, I have been using an entirely different approach, offering the simplest to the best. My last bid, for instance ranged from 170.00 to 1800.00. My low bid to keep my foot in the door and never let it out. This was a lot better explanation of price to quality ratio, to the unknowing buyer. They have been able in many cases to make a decision with my bids alone, which always leaves "yours truely" with the job. Most importantly, I have found that you can't sell people something they have no interest or knowledge about. I have also found that the average public, are very short minded about quality...So in short, about 4 prices ranges when bidding, will probably land you a lot more jobs. My work load has completely changed, as I am "booked" for the next three months. Bronzeo

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"Don't change horses in midstream, unless you spot one with longer legs" bronzeo oti
Jack Davis
1410 Main St
Joplin, MO 64801
www.imagemakerart.com
jack@imagemakerart.com

Posts: 1549 | From: Joplin, MO | Registered: Mar 2000  |  IP: Logged | Report this post to a Moderator
Deb Fowler
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Member # 1039

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Hi Bronzeo,

I find this post very helpful and refreshing. Since I have used this a few times and been successful every time with it, I believe it is
a winner. For the most part it works for all customers, like a kid in the candy store. They have many choices but can narrow it down to a few that they love, then they go by price.
I recently had a customer that complained that I didn't have a storefront and an array of finished samples for them to choose from. I guess that is because all my work is custom and I don't want a storefront. But, as you say, it is good to keep your foot in the door (or theirs in your door, sort of speak). I feel that there are customers that need and deserve this service and selection, at least the tiering approach.
I have a question. What would be one of your typical tiers on a 4 by 8 sign job? Would you go by amount of copy, with or without logos, special effects, that sort of thing? Or could you give a sample of a truck lettering job? Would it be the design, extra frills (such as gold leaf, that sort of thing?)

[ October 14, 2001: Message edited by: Deb Fowler ]



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Deb Fowler

"It's kind of fun to do the impossible - Walt Disney (1901-1966)

Posts: 5373 | From: Loves Park, Illinois | Registered: Aug 1999  |  IP: Logged | Report this post to a Moderator
Tony McDonald
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Good post Jack,
I agree. I have always been the same way, when trying to sell ideas or a product. I usually show the less desirable items first pointing out the features and benefits as I go. The last idea is the one I like the best, maybe it makes me more money or I feel it fits the need better. More times than not, after seeing all the choices the last one is picked. Saving the best for last....it does work.

Posts: 1199 | From: Camdenton, MO. USA | Registered: Oct 1999  |  IP: Logged | Report this post to a Moderator
Jack Davis
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Deb, Below I have cut and pasted a summary of my last quote. They chose number 2. Not what I had hoped, but at least 2 hand painted panels. This was for a dentist. Could afford any of them, but did not see the value of 3D and was to conservative in taste for the gold carving. I did not feel the need here to propose the 200.00 .040 alum blank with one color Hevetica, though in many cases I do. I was working with an intelligent buyer, with tastes different than my own, but still designed and sold 2 signs with little effort.

Signs proposed are described and priced in 4 manners, but can incorporate any combination of each and re-priced to apply. They will be priced for each panel. Double prices for 2 of the same applications. (The additional blank oval was for his choice of graphic, should he not like my choice)

1. Flat high grade 2 or 3 mil dibond aluminum laminate cut to shape and painted to color. High performance 7 year vinyl applied in 1 or 2 color to customer choice of samples. Logo or “kids portrait “ panel, will be one color graphic…..875.00
2. With addition of a 4 color hand painted portrait panel…..1150.00
3. With panels discribed above and a 3-D Framework installed on the elongated and oval panel with a 23 K gold leafing , replacing the light colored lines…..1625.00
4. With all HDU products and 3-D Carved elongated panel and oval (portrait panel carved also). 23 K gold leaf added to Title copy and all trim lines as determined by artist……1950.00

[ October 14, 2001: Message edited by: bronzeo ]



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"Don't change horses in midstream, unless you spot one with longer legs" bronzeo oti
Jack Davis
1410 Main St
Joplin, MO 64801
www.imagemakerart.com
jack@imagemakerart.com

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Rick Sacks
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Member # 379

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Over the years Mike Jackson wrote many articles on this very subject. He was informative and articulate and I'd sugest you doing some searching to find these articles. They expand this concept.

Samples are definatly needed whether you have a storefront or sell from a portfolio. Sometimes it helps to make a second sign to keep when you're doing one for a customer and think it would be a good sales tool decorating your studio.

I could make the same sign with sticky back letters on aluminum or painted on MDO with more colors and a frame, or sandcarved into redwood with gold leaf. Show the examples and direct towards what is most appropriate for the customers intended use.

With storefront signs, you can almost always sell a notch or three up.

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The SignShop
Mendocino, California

http://www.mendosign.com

Making the simple complicated is commonplace;
making the complicated simple, awesomely simple, that's creativity. — Charles Mingus


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Garrickc
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Thanks for the example. I've always found it difficult to quote pricing. At first I priced too low thinking I would not get the job if it were not the lowest price. Now we try to give options...we call it our "Basic", "Distinctive", "Professional", and "Impression" packages. Sometimes we even give prices for options no matter which package they choose. In addition to sign work we do a lot of offset printing....which means you have to add quantities (not to mention a list of suppliers) to the mix.

Thanks again,
Garrick

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Garrick Crocker
Absolute Signs and Printing
20372 E. Pennsylvania Ave, Suite G
Dunnellon, FL 34432
352-489-2407
asap@digitalusa.net


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Deb Fowler
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Member # 1039

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Bronzeo,
Thanks for the samples and explanation on the job you recently did. Taking the time that you did to scan that into the bb was a good visual!
Rick, I like the idea that you have given about duplicating jobs for samples, and have been thinking about it lately. That would be a great post in itself. A lot of jobs get away even without a snapshot, and another thought is to I scan my portfolio pix on disk to save it in case something happens to that. The portfolio is mobile and I keep a variety of samples here, can be an issue then also. I really do try, though.from engraved, Gemini letters, foamboard blasted signs, and coroplast swatches, etc. I rarely get asked for samples because my customers usually tell me what they want and leave the rest up to me. Only rarely, I get a confused one, and no matter what you do, they can't make up their minds, even after they have touched the sample and signed the approval and contract. It is so rare for me to have a customer such as this and I usually see them coming. It is extremely rare or none existent that I have a customer that regrets their decision. But, even one or two per year, does not sit right with me. I try to offer them a solution after the fact to help them, but money can be a factor to redo a sign. I would like it if 100 percent of my customers were happy all of the time, but as we know, that is not possible. The tiering system can be very beneficial to the whole scenario, I am finding out.

[ October 14, 2001: Message edited by: Deb Fowler ]



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Deb Fowler

"It's kind of fun to do the impossible - Walt Disney (1901-1966)

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Joe Rees
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We had a job this summer we almost lost completely because of NOT giving sufficient pricing options. We priced out our best possible way of rendering the job and left the client gasping for his heart over the price.

After that sank in for a few days I returned to have a frank discussion of what his real needs were - his budget. I was able to salvage the sale by requoting many possible concessions in materials and techniques to fit the same design within the money he wanted to spend. When he saw what he had to give up, he finally decided to go with the original quote, but it really helped us understand how critical pricing options are.

Oh, another thing it illustrated, the great power of a killer presentation. There was no way on earth this guy above was going to part with close to $6,000 for a damn sign. Then he kept looking at that printout - on glossy photographic paper with the highest resolutions, mounted to foam core with a cover sheet, very pro looking with rich colors and 3-d photoshop effects to illustrate the dimensional elements of the proposed sign. Here's a low-rez version of it that in no way shows how fantastic the real printout looked.

He could never get over it. His eyes would gaze from the purposely lower quality printouts of the revisions back to the high end print and he was so obviously hooked it was truly humerous. (in a mischevous but satisfying way).

[ October 14, 2001: Message edited by: Joe Rees ]



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Joe Rees
Cape Craft Signs
(Cape Cod, MA)
http://www.capecraft.com
e-mail: joe@capecraft.com

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Posts: 1974 | From: Orleans, MA, Cape Cod, USA | Registered: Nov 1998  |  IP: Logged | Report this post to a Moderator
Doug Allan
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Member # 2247

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Great fishing story Joe. I can almost see the guy taking the bait. Even low res. you can tell the 3D was hookin' the guy.

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Doug Allan
http://www.islandsign.com

"you get what you settle for"

Posts: 8981 | From: Kahului, HI, USA | Registered: Sep 2001  |  IP: Logged | Report this post to a Moderator
Randy W. Robarge
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Member # 2022

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I remember reading the article somewhere about the 3 tier pricing strategy. I think it was on the internet.

Does anyone have a link to it or at least know where the article was?

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Randy
Graphic Details
Promotional Merchandise Distributor
South Glens Falls, NY


Posts: 381 | From: South Glens Falls, NY USA | Registered: Mar 2001  |  IP: Logged | Report this post to a Moderator
   

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