Are you eating profits to get orders?

[Robyn]

I am getting calls for quotes in which buyers are telling me what they will pay if I want the job. One example was $1.50 off the screenprinted shirt plus free artwork and free screen set-ups.

Anybody else feeling the pressure to lower prices below a "reasonable" profit level?

Just curious how many of you are price matching and taking in jobs that barely cover costs just to be able to get the order?

[Lois]

I won't cut my prices to what someone will tell me that they will pay. I tell them my rates and give them reasons why they should purchase from me - quality service, good turn around time, satisfaction...You can't do a job and lose money. If someone is basically "giving away" their service, their customer service is probably not good. Just let the customer know that you provide quality. If that's not good enough for them, then they will find out later. I had someone want a lower price and ended up coming back to me because they were disappointed.
Lois

[levelbest]

Funny - we had a call the other day that did a lot of talking about how he wanted this and wanted that and how he was unhappy with this other big shop he called and how long it took to get his stuff. Basicly was being totally annoying - then went on to say how he didn't want to deal with a small shop, small time vendor.

My wife - in a moment of clarity and purpose - proceeded to tell him, the reason why you were a number and not a name, and the reason you had to wait so long for your order was because YOU DIDN'T DEAL WITH A SMALLER SHOP.

He probably won't call back but I was proud of her.

Anyway, if it's close to what we charge and we are slow, I might bend a dollar or two - but I won't bend much, because in the long run, you just screw yourself and end up being the shop all the price hunters call. In turn, that means that there is no Loyalty long term of those folks. They are always looking for a better deal.

Selling service, responsiveness, turn around, quality etc, will always win as long as you are at least REASONABLY priced.

Call your competition, see what they charge, see what they quote turn around wise, look at the kind of work they do compared to yours and go from there formulating a strategy based on where YOU want to be in the marketplace.

Oh, and don't be afraid to occasionally say, NO thanks and send customers on their way by being polite and telling them unfortunately, you can't do it for that price.

[Wishes]

We ran into a business owner who allowed her employees to vote each year on who they wanted and didn't want as customers. If they were too picky, annoying or complainers they would vote them off the rolls. That may not be easy at the present time, but you have to consider how much the headache is worth. If I can I try to show the customer the time it takes to hoop or why I can't put a 4 inch design on a cap. Once they see it they aren't as annoying. If they don't like the price or our service they can go someplace else. We have to make the project work for us.
Margaret

[signman]

I agree with the rest...YOU have to be happy with the job. Cutting your price isn't going to help you at all-because you will NEVER be able to raise the price to that customer again-you are stuck with the low bid!
Since my surgery I've had a revelation-life is too short to deal with (fill in the blank) p##@&s!
The only concession I do because of the economy here (highest unemployment in the area, businesses failing every month) is to bump my regular accounts 'up' one quantity price jump-AND I TELL THEM when I do it. I have tiered pricing-12, 36,72, etc. for screenprinting, bulk rates for digital printing (signs and banners) etc.-so I still haven't dropped to no-profit margin. It means shaving about 10% off-that's reasonable and the customer appreciates it. Anyone coming in the door (and this is at least once a week) telling ME what they are going to pay, or that ABC Shop is cheaper-is told to go right back there and give THEM the order-we will not play the game! So it means my competition is tied up with non-profit making jobs, with customers that are probably going to be chased for the money...while I stay occupied with money making, happy customers. Yes, it's slow-I'm able to turn around arounds in a couple days that normally I'd tell them a week or more...but that makes ME look good compared to the other guys!
So tighten your belt, take the time to clean the shop, do some maintainence, take the family camping for a 4 day weekend...and enjoy yourself!

[Maggie21]

Very well said Roland!

[Mr. Sew & Sew]

Amen all - I am seeing this phenomenon at my tanning salon - people telling me that they can get this tanning bed for $2 cheaper 5 miles away. I show them the pre-printed price chart and tell them I'm not running a flea market or a bazaar and am not open to negotiating. I will on occasion give volume deals to people that pre-purcahse a number of sessions and send some discounts to regular customers but the economy is tough enough without giving things away.