OTTO Cap

[HERB]

I want to give all of you folks the heads up. This afternoon one of my newer customers (a bar owner) called wanting a price on a OTTO cap with their logo. I worked it up and called him back, then he freaked out and said I was ripping him off because he could by them from OTTO for half of my price. I verified that he was purchasing directly from OTTO and he even gave me the sales persons name. I spoke with the assistant manager of the California office and was informed they only require a resellers permit to get an account. I told him it was my understanding they only sold to decorators. He said there was no way to verify the information given so they just make the sale. Very disappointing end to the conversation. Looking for a new supplier.

[Body Cover]

I hear you Herb!
In this economy though and with the internet presence what it is. WE treat these cases, as a learning experience, and if the customer does there homework and can find a way in to the supply chain, then we offer them embroidery only at around 20% higher than our normal pricing. and explain that it is customary to charge more for blanks because in essence we are the bank when we have to buy and hold merchandise until it is done and paid for.
and that we need to make a profit to be here next time he calls.
Point out that you can buy a fifth of alcohol for the price of two drinks at his bar, but he won't allow you to bring your own and enjoy the atmosphere he should understand.
And this way you make a little money on embroidery, and don't have any outlay for garments.
I'm afraid we are going to see more and more of this with the economy today, I'm sure Otto is looking at ways to increase customer sales as well. and soon we will all run out of suppliers.
It sucks but it is now a truth to our businesses.
Let us know how it works out?
Getting cold in Idaho yet???

Ron

[Rod or Sharon]

Hi Herb! This same thing is happening to us with SanMar. Our customers are all bringing their blanks from SanMar to us now. I'm about ready to pull the pin and enjoy retirement or double our embroidery fees! Wish all embroidery shops were union!
Sharon

[signman]

Funny how a 'bar' can have a 'resellers' permit...a liquor license isn't the same thing. BUT this has happened with other suppliers before, and a fast boycott of teeshirt suppliers that were selling direct (or even offering their OWN in-house decorating) shut them down fast.
What can you do? We handle it easy...people are always bringing in 'brand name' shirts and stuff they bought at Big Lots, Ocean State Job lots, Walmart...and we explain that for 'customer supplied goods' we get $1.50 per thousand stitches, a setup/digitizing fee, AND $5 PER ITEM for hooping charge (covers backing, trimming, etc.) AND we don't guarantee a perfect job on them-had a disastrous run of lightweight 100% poly shirts that puckered so bad...you have to explain to the bar owner...nice that you bought the hats-now what are you going to do with them? Want some magic markers? I have catalogs from thousands of ad speciaty suppliers for everything, keychains to sweatshirts...and not one of them will let YOU supply the goods. Period. So why should we if it means getting cut out of a profit? I didn't know Sanmar was doing it now-I'll have to question our sales rep. But I have run into 'independant' sales people that are running around trying to get orders for screenprinting and embroidery with a Sanmar book in their hand-and then expect me to do the job for pennies per item. Hasn't worked...I still get my $50 per hour whether they like it or not. And why do they come to me? Because they already bought the goods for their customer and found out no one ELSE in the area will work on customer suppied goods! Next time, they just give me the order and pay my prices.
If the bar owner doesn't want to pay your price...tell him to get magic markers and do it himself! IF your competition gets the job, at least you'll know they will be tied up for awhile doing a low profit job!

[HERB]

Just to add, OTTO is also doing the embroidery on these. $2.70 for 6K.

[The Embroidery Authority - OLD]

Herb,
Things can and will get nasty in a down economy. Companies will do what ever they deem necessary to maintain "cash flow".

Hang in there. Maybe our government will bail us out of these bad times.
In the mean time, my suggestion is to DIVERSIFY.
Maybe you could start selling liquor???

Ed

[Chris & Cindy]

I don't think small embroidery shops will ever be able to compete with the large suppliers that have endless inventory and 25 to 100 heads running. The internet has changed the game for sure. I do very few caps and hats in my business. As of a matter of fact I farm out larger orders and mark them up and still make a profit. You just have to do what ever it takes to make it. If ya can't beat'em, join'em.

There are still a lot of folks who had rather deal with a local business too. You just have to find them and build a business and personal relationship. That has kept me floating for sure. I have customers that have stuck with me for years and some even tell me they can get it cheaper online. But they like my service and personal attention. All of my repeat customers have my cell, email and home number. I also always throw in a extra or 2 with larger orders. Walt Disney always said "How can we PLUS that?" The PLUS factor will keep'em coming back every time.

[Laurie]

We started charging for blank product brought in by the custonmer ($3.00 per piece) and explain that we are not responcible is something happens to the product. Case in point, I have been working on a job that is 17 jackets (customer provided) and when trying to hoop the very first one, even though I thought I was OK and after having it stitch out great... two small spots had got caught up under and sewn together... needless to say I ruined the jacket trying to salvage it.
I called the gal and explained the problem and that she needed to get me another jacket, or someone was not going to have one. She was a lot more understanding thatn I expected and even told me to have it be her son's jacket that would be late.

Its just a whole lot of crazy out there and I wonder how long we as a very small baby in this business can keep hanging on! I guess I just keep sewing until they tell me to stop... huh?? [img]tongue.gif[/img]

Have a great day guys!!
Laurie [img]smile.gif[/img]

[The Embroidery Authority - OLD]

Previously stated: Walt Disney always said "How can we PLUS that?" The PLUS factor will keep'em coming back every time.
---------

Walt Disney can afford to "Plus that" because he charges $48 bucks a head at the gate.

On a more serious note, here's one for the kids...
What kind of car does Mickey's wife drive?.....

A "Mini" Van !!!!