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JLS Design

Pricing Structure

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So I did a quick search here, to see what everyone charges for their work.  I read through a couple of post, but never really got what I was looking for.  Obviously, there is material cost ( I got that part down thanks to a calculator someone posted on here), labor cost, overhead (which I suppose you could tie into labor cost) and if applicable, installation cost.  All I'm looking for here is what is one charging for their work?  Obviously pricing will vary based on your area, but I'm curious as I'm beginning to get busier and busier I want to ensure my pricing is about what a "norm" would be.

I'm considering charging about $5 to $10 per hour for my time (including overhead) from start to finish.  I recently did 54 total pieces of a two layer decal.  Between the weeding, and assembly, this took me close to 5 hours total.  Being this is a friend of mine, I charged him a little over material cost.  This got me thinking, as I'm spending this time, I'm not doing any of my other jobs I have lined up.  Really got me thinking (and reading the forum here) about getting ALL my costs in order.

I will be putting together an Excel spread sheet sometime soon to help with costing jobs, so I can quote that much quicker, but wanted some feedback from those who have done this a lot longer than I.  This will be my 2nd summer with the cutter, and intend to get out there a bit more.  I'm still a ways off from much larger jobs where I need to worry about installation so I'm not so concerned with that yet.  

Thanks in advance for your help everyone.

 

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4 hours ago, JLS Design said:

So I did a quick search here, to see what everyone charges for their work.  I read through a couple of post, but never really got what I was looking for.  Obviously, there is material cost ( I got that part down thanks to a calculator someone posted on here), labor cost, overhead (which I suppose you could tie into labor cost) and if applicable, installation cost.  All I'm looking for here is what is one charging for their work?  Obviously pricing will vary based on your area, but I'm curious as I'm beginning to get busier and busier I want to ensure my pricing is about what a "norm" would be.

I'm considering charging about $5 to $10 per hour for my time (including overhead) from start to finish.  I recently did 54 total pieces of a two layer decal.  Between the weeding, and assembly, this took me close to 5 hours total.  Being this is a friend of mine, I charged him a little over material cost.  This got me thinking, as I'm spending this time, I'm not doing any of my other jobs I have lined up.  Really got me thinking (and reading the forum here) about getting ALL my costs in order.

I will be putting together an Excel spread sheet sometime soon to help with costing jobs, so I can quote that much quicker, but wanted some feedback from those who have done this a lot longer than I.  This will be my 2nd summer with the cutter, and intend to get out there a bit more.  I'm still a ways off from much larger jobs where I need to worry about installation so I'm not so concerned with that yet.  

Thanks in advance for your help everyone.

 

Was this a serious post?   

I would seriously consider looking into some business classes.   My county provides free classes to local residents. It's staffed with successful business people that want to give back to the community.   

$5-$10 for labor isn't even minimum wage.  Shop around and find out what other shops charge.   Don't discredit yourself.  You're able to do what alot of people can't and that's worth a hell of a lot more money that what you plan on charging.   

Seriously though I'm not trying to be mean but your time is worth WAY more then that in this industry.  

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42 minutes ago, Go-C Graphics said:

Was this a serious post?   

I would seriously consider looking into some business classes.   My county provides free classes to local residents. It's staffed with successful business people that want to give back to the community.   

$5-$10 for labor isn't even minimum wage.  Shop around and find out what other shops charge.   Don't discredit yourself.  You're able to do what alot of people can't and that's worth a hell of a lot more money that what you plan on charging.   

Seriously though I'm not trying to be mean but your time is worth WAY more then that in this industry.  

It is a serious post.  I have looked around my area for some "seminars" on start up business.  I will however look again, as I'm sure there may be something now.   There are only a few  sign shops around in this area, and I'm not even on that playing field yet.  I consider myself the "JV" squad right now.  LOL  The only other few places I know (in my area) that do the same kind of decal work, will not offer their rates.  You ask for a decal, they ask qty, and if it's not x amount, they'll basically move on from you.  

No worries, I didn't take your post as mean.  I value others feedback who are in this industry.  It's my goal to be able to support myself doing the graphic art work I do, along with decals, and vehicle wraps.  

 

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shop rate here is $50/hr - at the rate you are charging you will hardly be able to replace equipment and supplies as needed.   think ahead about upgrading your equipment every 2-3 years until you have a a solid servo cutter (even then I update every 3 years) - you need to make a decent wage and not have it be more money in your pocket working at McDonald.    you can provide you product at a rate that pays you decent but still at a rate that is reasonable to the customer.   I work from home so I do not have to work 2+ weeks a month to pay someone else rent but think of the cost for those that do have a store front - I can assure you they do not work for $5/hr . . . . for very long that is

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1 hour ago, Dakotagrafx said:

shop rate here is $50/hr - at the rate you are charging you will hardly be able to replace equipment and supplies as needed.   think ahead about upgrading your equipment every 2-3 years until you have a a solid servo cutter (even then I update every 3 years) - you need to make a decent wage and not have it be more money in your pocket working at McDonald.    you can provide you product at a rate that pays you decent but still at a rate that is reasonable to the customer.   I work from home so I do not have to work 2+ weeks a month to pay someone else rent but think of the cost for those that do have a store front - I can assure you they do not work for $5/hr . . . . for very long that is

Thank you for your input.  I'm already looking at upgrading my budget cutter.  I'll still keep the one I have, as it works just fine, but I know it's limited.  I do my graphic stuff on the side, along with the decals, and what not, but I am working towards being able to not have to work for someone else.  If you catch what I'm saying.

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if you are working toward working for yourself then charge the proper rate now - it is easy to lower a price but real hard to raise it after people get used to you giving it away.  that and there is always the friends wife with a cricut angle that people will hit you with, for them I say let her have the job - 9 times out of 10 they come back after either she tries or the bluff is called.  

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It takes time and experience to learn how it all works.  The trick is YOU need to re-adjust your thinking.  That is way I suggested some business classes.   If your county doesn't offer any go to the next county and pay the $20-40 it cost for not being a resident of that county.   Trust me it's worth it.  The reason counties offer classes like this is because they want people like you building businesses and bringing in more money for the county.  Don't give up and keep searching

You have to ask yourself "Why are people coming to me for this?"  The answer................  because they don't know how to do it or have the means to do it.  That's powerful right there.   

For a long time I would think to myself why on earth anyone would pay $20 for a 4"x12" decal.  It's so easy to make and only cost about $.75 in material.  Because they can't and you can.   

When I'm out there getting paid $60 an hour to remove graphics it's because they don't want to and they will pay that much so they don't have to.  Once you start doing this more you'll hear customers say "Man, I could never do that without messing up."  That statement right there is why I get paid what I do.   Because I've spent the time to learn; Graphics, vectors, cutting vinyl, taping up vinyl, proper ways to remove vinyl, installing vinyl, billing, accounting, expenses, profits, advertising, selling, dealing with cheap people, and LEARNING TO WALK AWAY.  Knowledge is extremely valuable.  It's taken many years to learn all this but it's paying off.  

None of this is natural thinking and has to be learned.  

Time to re-adjust your think.   You see a $.75 decal on the table you just made.  I see $20 that someone is willing to pay for something they can't make.  

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Love the feed back!  Thanks for sharing this is exactly what I was looking for.  @Go-C Graphics it's funny when you said "You see a $.75 decal on the table you just made.  I see $20 that someone is willing to pay for something they can't make.", that hit me like a ton of bricks this past weekend when I tracked how much time I was investing in the decals for  my buddies dyno shop.  In the 4 hours I finished weeding the vinyl, then layering them, I looked at my job board, and seen 2 business card jobs I could have banged out, and made $150.  LOL that's when I started reading the forum here a bit more, searching for rates, and price structures.  I knew then it was time to re-establish my pricing, and sticking to it.  And you're absolutely right, I would rather charge full price, and "discount" at the end, than start off too low.

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On 3.5.2017 at 9:36 PM, Dakotagrafx said:

shop rate here is $50/hr - at the rate you are charging you will hardly be able to replace equipment and supplies as needed.   think ahead about upgrading your equipment every 2-3 years until you have a a solid servo cutter (even then I update every 3 years) - you need to make a decent wage and not have it be more money in your pocket working at McDonald.    you can provide you product at a rate that pays you decent but still at a rate that is reasonable to the customer.   I work from home so I do not have to work 2+ weeks a month to pay someone else rent but think of the cost for those that do have a store front - I can assure you they do not work for $5/hr . . . . for very long that is

When you say $50/hr. Does that include designing, cutting, weeding etc. The time it takes for you to drive from your home to the customer etc. Or only installing the graphic?

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3 hours ago, amaterasu said:

When you say $50/hr. Does that include designing, cutting, weeding etc. The time it takes for you to drive from your home to the customer etc. Or only installing the graphic?

design time, if a large job the cutting and weeding would be added but for the most part my cutting and weeding time is very negligible from experience, but that would include installation. driving is more in the $1/mile with a $40 minimum

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I know this is an older thread, and in the spirit of full disclosure I am cutting vinyl just for myself not a business, but I have been in business for 50 years and a business owner for 20 years.  

 

As far as friends go I have adopted a philosophy that serves me well.  I have 3 kinds of friends, first type are such good friends they are close family and I don't charge them for anything...second type, they do stuff for me cheap and I do stuff for them cheap...and the third (which is the vast majority) pay full price...I don't go to them for a discount, I go to them because I'd rather pay a friend and help support him than pay a stranger...and they should come to  me for the same reason.  I want my friends to stay in business, so I can go to them again, and that means I need to let them make a living.  I have had friends who have give me a bill that was too low, and I have asked them to charge me more...this is my friend, why would I let him get cheated...and your friends should have the same attitude.  And yes I have had friends in the third catagory ask for a discount, and I look them in the eye, and ask back...are you here to support a friend, or just get a cheaper price?  

 

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On ‎8‎/‎5‎/‎2017 at 11:11 AM, steved13 said:

I know this is an older thread, and in the spirit of full disclosure I am cutting vinyl just for myself not a business, but I have been in business for 50 years and a business owner for 20 years.  

 

As far as friends go I have adopted a philosophy that serves me well.  I have 3 kinds of friends, first type are such good friends they are close family and I don't charge them for anything...second type, they do stuff for me cheap and I do stuff for them cheap...and the third (which is the vast majority) pay full price...I don't go to them for a discount, I go to them because I'd rather pay a friend and help support him than pay a stranger...and they should come to  me for the same reason.  I want my friends to stay in business, so I can go to them again, and that means I need to let them make a living.  I have had friends who have give me a bill that was too low, and I have asked them to charge me more...this is my friend, why would I let him get cheated...and your friends should have the same attitude.  And yes I have had friends in the third catagory ask for a discount, and I look them in the eye, and ask back...are you here to support a friend, or just get a cheaper price?  

 

Pretty similar here. I have seen however that my super close friends that I try not to charge almost get offended that I won't charge and either still stuff some cash in my hand or will stop asking if I can do things because they don't want to take advantage of my generosity. 

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On 5/3/2017 at 8:18 AM, JLS Design said:

So I did a quick search here, to see what everyone charges for their work.  I read through a couple of post, but never really got what I was looking for.  Obviously, there is material cost ( I got that part down thanks to a calculator someone posted on here), labor cost, overhead (which I suppose you could tie into labor cost) and if applicable, installation cost.  All I'm looking for here is what is one charging for their work?  Obviously pricing will vary based on your area, but I'm curious as I'm beginning to get busier and busier I want to ensure my pricing is about what a "norm" would be.

I'm considering charging about $5 to $10 per hour for my time (including overhead) from start to finish.  I recently did 54 total pieces of a two layer decal.  Between the weeding, and assembly, this took me close to 5 hours total.  Being this is a friend of mine, I charged him a little over material cost.  This got me thinking, as I'm spending this time, I'm not doing any of my other jobs I have lined up.  Really got me thinking (and reading the forum here) about getting ALL my costs in order.

I will be putting together an Excel spread sheet sometime soon to help with costing jobs, so I can quote that much quicker, but wanted some feedback from those who have done this a lot longer than I.  This will be my 2nd summer with the cutter, and intend to get out there a bit more.  I'm still a ways off from much larger jobs where I need to worry about installation so I'm not so concerned with that yet.  

Thanks in advance for your help everyone.

 

A job at McDonald's would pay you more.  $50.00  and up for your time.

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