[amayausers] Re: "Retail" embroidery charges

Just to clarify Caren's notes...the 'two' price code scales are  
referred to as 'A' or 'P' codes, not 'R'.
P is the 50%, Q, 45%, etc.
I have catalogs here with over 10 price columns, also have see an  
unusual price schedule-several companies that will do 'small' run  
jobs but prefer 'quantity' jobs-will have something like quantity of  
150 (C) 250 (C) 500 (B) 1000 (A), which they can show hidden on the  
page as (2CBA). Translates to : we want your larger orders and will  
give better discount than smaller orders!
I typed out the 2 scales and post it behind my desk-so I can  
instantly remember what discount the letter stands for. Real handy  
when trying to compare supplier ACME to supplier XOX to price out  
pens for a customer. Remember, sometimes the price is great for the  
customer but lousy for you-spend 2 hours with a customer doing up  
artwork and revisions for an order of 1000 pens-then realizing the  
'great deal' is a C or D discount-and you just made about $45 for 2  
hours of work...not very profitable. After awhile you will get the  
hang of which suppliers are good for the profit line, and also how  
much 'time' to allow to design a pen or keychain logo without  
charging for it!
Many, many clients are getting used to paying for a 'logo' charge-so  
if you can charge it for the first order, then get their logo into  
your computer in 'vector line art' format-and you will have an  
instantly scaleable perfect logo no matter what they will ever order!  
Illustrator, Freehand, Corel Draw, 3 programs I know that every  
supplier likes to work with. Jpg, pdf, bmp, gif-these are all  
'bitmap' images and are NOT going to give clean straight lines. Might  
work for small print job like a keychain, but blow it up to 12" for a  
teeshirt, looks terrible! And you cannot use bitmap for vinyl sign/ 
banner work-MUST be in vector line art format. Flexi Sign is one of  
the top programs that can work with both bitmap and vector line art  
formats but is very expensive!
As for figuring discount amounts, Caren is right-you don't multiple  
to get the retail price if you only have the net cost- you divide !  
Otherwise you really short change yourself. If the supplier tells you  
the price is NET (your bottom cost) and you want a 200% keystone  
markup (call it whatever you want-you want to double your money) then  
consider your 'retail price' will be 100% and your 'cost' is 50%- so  
multiple by 2 or divide by .5- you'll get the same amount. For a 40%  
'markup' then your 'retail' price is still 100%, but your 'cost' is  
60% of that, so divide by .6. For 30%, .7, etc. See the graph  
starting? It sounds confusing but it isn't. I've had arguments with  
so called 'business people' over how to figure profit/cost/markup and  
learned it on a sales job for a multi million dollar company.  
"Keystone" markup means 'double your cost to get retail' or multiple  
by 2 (200% markup). A 'triple keystone' means multiple by 3 (and this  
is the industry standard for JEWELRY-remember that when you go to buy  
that new diamond for the lovely lady in your wife-the jewelry is  
marking up THREE TIMES to see it).

Roland
116 Main St
Claremont, NH 03743
603-543-1324
fax 603-543-9902
(fax machine is NOT turned on 24/7-only during normal business hours  
Mon-Fri., 8 am -5 pm)
www.sunrisegraphics.org
signman@xxxxxxxxxxxxxxxxxxx


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