pricing with the expectation of a large volume of further work

[freezermink 3]

So i've been contacted by a few guys that are starting a high-end performance bicycle/casual bicycle apparel business. They're looking for a local guy (me) to help them with some simple die-cut vinyl to advertise their business with a few custom bicycle decal sets. They have designed them on their own and sent them to me to be cut using the scheinholographic chrome vinyl i have in stock. I have spend a good hour or so getting things ready for the plotter and given them a test set on some cheaper avery vinyl for them to install and check sizes etc on the bike. once ready, i'll cut 2 sets of decals in the chrome for them to install. the decal sets will use ~18in x 15in of vinyl each, and not an overly difficult or extensive weeding job.

I'm having a hard time deciding what to charge them for this whole process. the confusion is compounded because they are planning to order many sets of simple decals for sale and advertising for bikes and their clothing line, as well as future custom bike decal sets.

So... with all that in mind, do i become the super cool guy and give them a screamin deal on the decals so they'll be sure to come back? i've read many times that undercharging is worse, which i tend to agree with. I am more fearful of UNDER charging them. However, i don't want to shock them and have them reject the rest of their planned business with me. So far i have overwhelmed them with my tactfulness in getting them exactly what they've wanted twice as fast as they expected and i want to continue as to keep them interested in my services.

given my time and the amount of vinyl, considering all other factors, do you guys have any suggestions as to how i proceed?

i appreciate those that took the time to read that lengthy post.

[huffgraphics 0]

i would price it like every other job and maybe down the road give them a little discount for the returned business. Give them a great deal now and you might be out some money, if they don't come back for more.

I think it is the service and quality that brings customers back, more than the prices do. That has been my experiences at least.

[stetson5331 80]

I agree on setting your price as you would anything else but your going to have to be in the wholesale price range for them to buy qty..On qty you need tiered pricing otherwise they will likely go to an online wholesaler for their product...

I have found sometimes in business you have to give a little to get a little...

With that said..I will usually give the 2 sets for a starter and then say when you place your order heres your price for this QTY and break it down with minimum QTY's...100...250...500.. and so on...

If you have wowed them with service and they want your product, whats a couple of decals for a perk as long as they contract with you on the rest...If they don't come back then DON'T give them the cut ready art back that you worked on...If they want it I would sell it at a premium for your time and anxiety for not coming back for repeat business... Either way you either get their business and make lots of cash or you sell them their logo back cut ready and some cash for it...Either way thats what I would do..

stetson5331

[freezermink 3]

thanks for the replies guys.

their emphasis was very much on working with someone locally, so i would be shocked if they decided to look to one of the cheap online wholesaler places, but stranger things have happened. i guess my worry simply stems from the possibility of selling myself short.

[autzenoise 2]

Personally, I would do the same as stated by Stetson. Give them the 2 sets you are cutting on the chrome, along with an estimate sheet with quantity pricing. This way you are showing them that you are as committed as they are about keeping their business local, and able to give them a fair pricing dependent on quantities.

[screenprintr 319]

Hundreds of people come to use telling us they're planning on buying more down the road. We never see many of them again.

That's the first sign that they're price shopping.

Are they selling bikes too? If so ask them how much for one bike now, and down the road you're planning on buying more bikes. Maybe one a year.

See if they give you a better price.

BTW, that's one way to get their business. Many times I've bought products from my customers. They keep coming back. We bought food from a local restaurant for two or three years before they finally started buying from us.

[freezermink 3]

thanks guys.

at screenprintr - haha, i'm getting into the cycling thing as of late, and i'd love to buy 1 bike per year from them, but these are crazy high end bikes... i'd go broke just trying to get their business! i do see your point though. i don't believe their intentions were to send me the classic 'well i'll give you lots of business later' vibe and drive down my price, but to give me a layout for their future business plans. who knows for sure though.

i really don't agree with giving them the decal sets for free. i have given them samples of their logo with the vinyl i'll be using, as well as the template for them to mock up on their bike, so the freebies have been done. i think the final product pricing should reflect the total time and effort i've put into this project. that being said, i don't think that i'm going to be charging them for ALL the time i've put in. for example, they just emailed me and let me know of a few tweaks to the design after the mock up vinyl was laid. the tweaks just took me 30 minutes or so. that i'll do pro-bono. no big deal. they understand the value of my time and i think that'll go a long way.

[stetson5331 80]

I see on the mock ups and templates..Sorry didn't catch that one...Sometimes I read too fast to get it all..LOL..Part of being old I guess...

I see what your talking about..Sounds like it's a clinch on the deal then if they are having you change a few tweaks and such...I would however get your pricing in line with qty's and tier prices...I think being prepared for that meeting will benifit you in the long run..Shows confidence in your product and savy business sense..

Keep us informed as to what goes on..GOOD LUCK!!

I hope this works out and sends lots of cash your way..

stetson5331

[freezermink 3]

I see on the mock ups and templates..Sorry didn't catch that one...Sometimes I read too fast to get it all..LOL..Part of being old I guess...

I see what your talking about..Sounds like it's a clinch on the deal then if they are having you change a few tweaks and such...I would however get your pricing in line with qty's and tier prices...I think being prepared for that meeting will benifit you in the long run..Shows confidence in your product and savy business sense..

Keep us informed as to what goes on..GOOD LUCK!!

thanks so much for the help guys. i think being prepared with that kind of information (quantity tiered pricing) will be incredibly helpful. good looking out.

I hope this works out and sends lots of cash your way..

well that certainly makes two of us. i'll put your name on the first dollar!

[boosted 2]

I agree on setting your price as you would anything else but your going to have to be in the wholesale price range for them to buy qty..On qty you need tiered pricing otherwise they will likely go to an online wholesaler for their product...

I have found sometimes in business you have to give a little to get a little...

With that said..I will usually give the 2 sets for a starter and then say when you place your order heres your price for this QTY and break it down with minimum QTY's...100...250...500.. and so on...

If you have wowed them with service and they want your product, whats a couple of decals for a perk as long as they contract with you on the rest...If they don't come back then DON'T give them the cut ready art back that you worked on...If they want it I would sell it at a premium for your time and anxiety for not coming back for repeat business... Either way you either get their business and make lots of cash or you sell them their logo back cut ready and some cash for it...Either way thats what I would do..

stetson5331

im happy

[thebuttontaylor 1]

You could charge them for the first 2 with the stipulation that you'll take it off there first order of some quantity..

Bill

[BannerJohn 1,324]

5 or less of anything gets full price with me. After that, I give quantity discounts. The more they buy, the less each one costs. that's the usual way.