What with all the talk on Grumble and elsewhere about pricing, I thought it might be enlightening to see what our CoGS are.
As I suspected, most of us are in the mid-20s; Iwould also suspect some of the folks in the 30s are art galleries, or whose main focus is not framing, because I would think (and it is just a thought) that galleries would have higher CoGS than framers.
You are absolutely correct in that this number (like many statistics) must be interpreted.....
If you are a pure framer, than this is a great little number to monitor and check on how you're doing.......but if you sell other things like artwork, or gifts like we do, it will skew this number dramatically. It would be important to have your accounting system set up so that you can easily retrieve this number in relationship to just your framing.
John (New York for Decor Expo).....first time I've seen the skyline since 9/11.....it's a funny feeling being here.
I had thought my COG was running at between 25 to 30% and I voted that way Michaels poll prompted me to check all the jobs I have done over the past three weeks, I have had a plesent surprise I'm running my COG at 20% or less on all jobs.
Thanks Michael for posting this poll going to New York does not seem so extragavent now.
One of the geniuses here--Bob Carter, Jay Golz or one of them--said to take a week and itemize every workorder for CoGS.
Did that for the entire month of January and, like you, I was amazed. I'm right where I want to be--in the low 20s -- and that includes selling a lot of limited edition art and accessories. My framing CoGS is right where I want it after a little tinkering with the pricings
Point is: wouldn't have ever thought of doing it without help from the guys who know how to crunch numbers effectively.
You are right I owe it to Bob Carter, Jerome Fheig, John Rhanes, and a good few others who took the time to post on the Grumble or talk to me about pricing, only for them I would not have had the bottle to get my pricing to where it is, and the good thing is that a few other framers over here are starting to ask me how I approach my pricing and are now working on their pricing.
Jerome sent me a bunch of stuff on pricing after he was over with me last summer, that and all the other stuff on the Grumble, and some of Jay Golz stuff that I found online have greatly strengthened my argument with other framers over here when it comes to pricing, at long last my words are being heard that it is not about being cheap but about maximising your margins.
Now I have just to get a few other Irish framers to go to the Grumble and give their input unfortunately the Grumble has strong competition over here the Pub, of all the other framers I know and I know a good few of them, only one other asides from myself does not drink but he spends all his spare time in Cuba, he asked me the other night if I would manage his business while he is in Cuba this summer when I asked him what the deal would be he said he would work something out now this is a guy who wanted me to run his business years ago and was surprised that I would want to get paid, I guess it takes all sorts.
I’m going to try and take one of Jay’s classes in New York, I not sure if it will happen I have not being able to book online so I will just have to see what is available when I get there.
Do you know what your average ticket is? I suspect those with a low COG are in the $100.00 to $140.00 range on their average ticket. My average ticket runs between $185.00 to $240.00 on framing only. My COG runs between 30-33%. I think higher-end framing is going to have a higher COG. The people voting in the 30%+ range are not necessarily galleries, but could be high-end frame shops. Even with a higher COG, they are still making more money on every tigket.