Discussion in 'The Voting Booth' started by FrameMakers, Feb 21, 2002.
What's your length mark-up
We use a 5x mark up as a standard based off of base pricing, but some of the mouldings I've been getting recently have been so cheap that a 10x seems more like it.
I use an X 5 as a general rule of thumb after factoring in a 25% wastage, some of the cheaper (contract) mouldings that I use will get a straight X 10 mark up, bottom line is X 5.
Things are a bit up in the air over here at present we have lost one of the distributors in Dublin, there are only two left now in the area I will only deal with one of the existing distributors, I have always had the option of going and hand picking the moulding in the warehouse it is hard to change a mind set to start using samples and catalogues, my option is to import from the UK now or just deal with one distributor, I have had one import shipment from the UK with mixed results on quality and on receiving a complete order it can get very messy if things are not right on a shipment, bear in mind we have no chop in Ireland everything is length or box.
I do have a raw moulding manufacture in the next village to me about 1 ½ miles away there range is good but limited, they are introducing finishes though I have not seen any yet, I do finish some mouldings myself.
I'm curious: anyone base their markups on chop cost then order length most of the time? I've been doing that then, when I really have to, order chop and my costs are covered.
ALSO: anyone using the Jay Golz moulding factor??? Found this in my latest Lifesaver update and, when I inquired, found out Jay recommends plugging in a figure like, say, $1.25 per foot every time you order moulding to cover incidental costs incurred in handling the moulding, cost of freight, etc.. The figure, when plugged into the Lifesaver database, affords every moulding every time you enter it the same per foot moulding factor.
I'm going back into my database and seeing what's better to do: price by length or price by chop.
at this juncture, I'm kinda confused which way to go.
We haven't quite worked up to the formula Jay used last year in LV but we're getting close.
4 times base lineal plus $2 per foot, Wood or metal for major vendors. Knockoffs generally get 5.5 times plus $3. Then there are the exceptions that are 6 to 7 times plus $3.
Knowing what I know now about the POS peculiarities, I would have started pricing chop but buying length instead of pricing length & buying length. It's tough to bite the bullet and change old habits.
Many of the companies we buy frome don't offer chops. Thats why I posted the poll. I also use _x chop pricing + $5.00 per frame and then buy length if the chop is over 5 ft.
Had posted Dave privately on this matter, since I was unaware some moulding companies don't offer chop.
Take that back: used to use one that was length only but dumped them for quality issues.
Ours is around 3.0 X chop and I say "around" because some fillets are 3.5 X chop. LIke everyone else, sometimes I get a deal on a box or two, then it's 7X markup. Of course, I markup chop and usually order length.
I use the Golz moulding factor and, as I can hide it in the configure data area of Lifesaver, it is a hidden add-on which covers freight, messups, extra length, etc etc.
Mine varies, such as whether they have to be shipped, of come off a delivery truck from the supplier (Less hassle, cost..)
I like offering a large variety, so about half each
type, but I do not mark up the supplier with a delivery truck line as muc.
I also rate according to cost price. High-end mouldings don't get marked up as much as the inexpensive.
I am still working out what I think is a good markup, according to profit, and all the other factors. I am also still somewhat sensitive to people who are shocked with prices, so I carry a small "economy" line that I take out only when I feel that I am losing a sale.
Like this thread, because it is a tough topic.
Have not had the experience of Jay's G.'s pricing class as of yet, but looking forward to it soon.
When I did it manually I would price the mouldings I most likely ordered Chop by a chop multiplier (minimum 2.5) and length on a sliding scale. Comparing the two was interesting and helped us settle on what felt like a good acceptable rate.
And, with my POS program I can price each moulding Distributor differently (and do). (Some chop at whatever multiplier, some length.) I can also change individual mouldings to whatever formula or even just entering in what footage price I would like. It may not have the potential for every formula out there, but there is considerable flexibility in the pricing arena.
I didn't vote, because as a manufacturer/distributor don't have any markups. But when I click on "Results" I get results.
What are they, fake results?
It appears anyone can view poll results without voting even if the pollster specifies otherwise. It's a small glitch, but one you should be aware of. You may be forgiven for wondering, "What difference does it make?"
Minimum 3X chop plus $1.00-3.00 per foot.
In stock mldgs I buy by the box.(price still based on chop,tho)
This came up automaticly with the poll
I realy don't care if you can see it
I base all sell prices on chop times X, and then buy length on a job by job consideration
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