[amayausers] Re: embroidery sales
- From: "Roland R. Irish III" <signman@xxxxxxxxxxxxxxxxxxx>
- To: <amayausers@xxxxxxxxxxxxx>
- Date: Fri, 30 Dec 2005 08:43:34 -0500
Kim, Cheryl has a good chart there for a guideline.
I have a shop across the next state over that takes orders for me-and we
work on a sliding scale (ASI format-if you are familiar with ad specialty
coding)
The smaller the quantity, the larger the commission. Since our 'retail'
pricing drops as the quantity gets higher, so does the commission. Since I
do all his artwork and designing, I get a 'setup' or art charge on top-or
just charge him lower commission. On the average, he gets 25% on most orders
and all he is doing is meeting the client and taking the orders, then
delivering them. HE is responsible for paying me-not the customer. Make sure
you get THAT taken care of up front-if you give your salesperson the
finished goods, they deliver them and don't pick up the cash, YOU can get
stuck chasing the customer.
If you can pick up some 'ad specialty' catalogs with pricing that can give
you an idea of where your prices should be-if you aren't charging as much as
the catalogs, you are losing money. Some of our prices are higher than
catalogs-but we don't demand high minimum orders, either-and deliver direct
to the customer, go over design changes with them, show samples, etc.
So never try to 'beat' catalog prices-just compare what they are offering!
And from the 'coding' you can figure out the commissions.
>>>>>ASI/PPIA/UPIC price coding>>>>>>
commonly called the 'A' or 'P' code
Pick up any 'specialty catalog' you get in the mail-for giveaway stuff,
pens, etc. and look to see if there is a little logo on the cover for one of
the companys (ASI, PPIA, UPIC) along with a 5-7 digit number. This means the
catalog is for any sales rep to use...and under every item price column or
description you will find hidden a 'code' sequence. Usually right after
Freight info....you might see "3ABCD", or 2B2C, etc.
A or P = 50%
B Q= 45%
C R=40%
D S=35%
and so on. The numbers mean "3ABCD"= first 3 price columns are A discount,
next col. B, then C, then D. "2B2C" means first two price breaks are B
discount, next 2 are C, etc. A single A or P or D or R, etc. means all the
pricing is that one commission.
Usually your art charges or setup is a G or V, only a 20% markup.
So now you can compare any catalog to your prices.
If you need any help just give me a hollar!
Roland
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