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Thread: Cost Of Doing Business

  1. #11
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    Oct 2009
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    Ohio
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    Kix, that is sorta what I also do and really seems to work well with people. I've also found that looking them straight in the eye when you quote something makes a difference to them, call it body language control. Just my opinion...honesty pays..


    CJ

  2. #12
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    Feb 2008
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    Just North of the South Side, Western Edge of the Eastern Slope, Denver.
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    Yep, just dont look em too hard in the eye, people get the feel like your challenging them and can get a little queasy. A smile can go a long way, and for me, it has always been about sincerity.

    A lot of people dont want to be the first to put a number out there, as common neogtiating tactics mean you just lost. But I find that I would rather not squeeze every last penny out of the buyer, because then its a painful experience for them and they dont want to come back. So I dont worry about a buck or three if it helps grease the deal. Make partnerships, not customers. Then you can feel comfortable when you ask them to brag your piece up a little and carry a couple of your business cards to help get the word out. And you have to do that with every piece you sell. Maximize your refferal potential. You arent selling wood or corian, you are selling you.

    Damn, where'd that soapbox come from? Sorry.

  3. #13
    Join Date
    Apr 2008
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    Sacramento Ca
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    Quote Originally Posted by CarverJerry View Post
    Kix, that is sorta what I also do and really seems to work well with people. I've also found that looking them straight in the eye when you quote something makes a difference to them, call it body language control. Just my opinion...honesty pays..


    CJ
    Ok I will give my 2 cents worth! I have been making signs for 30 years, I tell you this not to brag, but to let you know I have tried it all! One thing to remember is what we think is a fair price isn't always what the customer thinks is fair!

    When making signs we have a little lead way. I buy a 6 inch by 8 foot board of redwood say at $3.00 a board that comes to $12.00. ( If you are in business get a resale license to pay no taxes!) With that 8 foot sign I can make 4- 24" signs 2- 4' signs or 2- 36" and 1- 24" etc. You get the picture!

    So what I do is charge by the board foot and not by the hour. Often times we have a project the CW takes 5 hours at best to carve. So is that fair to the customer? Well you may think I have the means and they don't, so yes! The thing is they will will find another sign shop! I hand route and have my CW and a K2 CNC and other shops can make the same sign in less time and for less money.

    So I found charging by the board foot works the best for me and is easy to figure. You take the thickness of the board times the width the length and divide it by 144. I.E. the 1" by 6" by 8' board 1" x 6" x 96" /144= 4 board feet. All measurements must be in inches.

    So lets say I am going with 4-6" by 24" signs that is one board foot so I charge $36.00 a board foot for a simple residential sign, "The Smiths" that would be $36.00. for a basic black lettered with chop trim finished sign. You can adjust the charge for wider boards as you see fit.

    Now lets say they want some artwork? I charge that ala carte! Why because as you know the details vary. If it is a simple pine tree I charge from $3.00- $5.00. If it a horse with little color change $5.00. Now if they want the bass jumping over the lilly pad to get the frog then the price goes to $10.00.

    Then if is really detailed and will take many different colors a min. of $25.00 I then let the customer know what is involved and let them make the choice. I assure them I will do great job for them! Normally when you get a higher end request the customer is willing to pay for your talent. It is the person who just wants a sign with their name and don't care what it looks like is the one looking for the best and least price!

    Trust me there are more customers out there like that and that is where you make your money! So if you make $36.00 per 6" by 24" and out of that 8' board make 4 that you paid $12.00 plus the finish material is about $8.00. You make a profit of $124.00 for that one board! Total material cost about $20.00

    Time per sign with centerline about 20-25 minutes per sign. Then spray paint sign with flat black, just spray letters and edges don't worry about the over spray. Let dry plane or sand total time about 10 minutes per sign. Five minutes is drying time, I use Walmart 96 cent flat black and it dries quick and lasts. Time to spray sign say 3 times I use a water based poly, each coat 2 minutes to spray 6 minutes total and the rest is drying time. Total time per sign approx. 41 minutes!

    I think that is pretty good per hour that is about $46.00 bucks! Of course times will vary, but even if each sign took an hour that is $36.00 an hour! If the detailed painting took you another hour, which I don't think it will well $25.00 bucks is not bad and the paint will cost very little. A little secret with detailed artwork apply your main colors first. If there is a lot of green apply it without being worried about getting it on the non green sections. Then apply the second main color and when they dry start filling in the detailed parts with the correct colors.

    Well thanks for reading, you can set your price for board foot that works for you and to sell a sign. I use shop rates for furniture refinishing or labor type jobs that works best for me because I am doing the work and I kind of know how long it will take. But with the CW times vary so much per projects it isn't fair to me to charge the customer, when there are other CNC machines that are faster. They may not do a better job they are just faster. Or you may have someone like me that has been hand routing signs for 30 years and I can make carve 3 signs to one from the CW, Again not always as good, but remember the customer doesn't care as long as it has their name on the sign!

    Anyway I hope I helped, by no means is my way the best! All I know it is the best for me! Remember to be fair and never under sell yourself!

    PS I wrote another post about the same http://forum.carvewright.com/showthr...t=13229&page=4

    Ike
    Last edited by Ike; 05-09-2010 at 02:00 PM.

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