What would you charge?

[Gregg @ Keystone Sewing]

Excellent points.  I've been reading "The Art of Pricing" as recommended by a few members here on another thread in another sub section. 

If you think my prices are now going to go up from one to now two dollars for an item after reading the book, your not paying attention, and obviously have not read to book!

A lot of what I'm focusing on and trying to improve on is trying to convey to the customer the quality services that we provide.  Or, better yet, the VALUE of what we do.  Some people will match our price, but few will match our quality, espeically in certain areas.  But, NOBODY will know this unless I'm prepared to educate them, or present my case.  For this, I have to be ready.  A lot can go into being aware of what you yourself do, and what your competitors are doing, but this need not be the case every time.  In many cases, your customer will tell you. 

What do you charge? ..........I have learned that $ can be one of those taboo subjects on this site but lets talk about it anyway.

When I had an active shop and I would answer the phone, the first thing I would ask is "Are you letting your fingers do the walking....are you calling around the area shops asking for prices?", If they answer "Yes", I would say "Great, I shop the very same way", "Let me ask you a few questions first......is price or quality more important to you?" "How quickly do you need to have the project completed?" As I am listening to the answers, I am formulating a "battle plan". In this plan, I am considering things like: is this cushion going to keep me from a real money maker, can I work it into the flow of my shop, can I make money from future work from this customer.

I would give them a price that I knew would make me money and then I would listen....if they say "Well Acme Upholstery can do it for $15 less" I would always say that "If Acme can do the job in the same time table I can and if their quality is is good as mine....then you need to take it to Acme but if you bring it to my shop you will have the benefit of having over 60 years of experience cutting and sewing your cushions"

I know that everyone has their own phone personalities but I hope there were a few nuggets in what I used for 30 years. Steve

[Saddleman]

Even if you  work from home and your overhead is low so what

Amen!! It should give you a profit advantage, and not give a price advantage to a potential customer. 

Gregg,  I have been reading the book too. It's good!

[sofadoc]

Even if you  work from home and your overhead is low so what

Amen!! It should give you a profit advantage, and not give a price advantage to a potential customer. 

Gregg,  I have been reading the book too. It's good!

Commercial location vrs. work from home. There's a "trade-off".
I have a commercial location that sells itself. I don't have to hustle for work. It just comes into me right off the street. So no advertising expense. But the trade-off is the added expense of a commercial property.
But the customer is naturally going to have the perception that a "work from home" upholsterer should be cheaper. And they think you're open 24 hours.

[bobbin]

Labor in the $150-175 range, matching of fiddly materials being more to the high end.

Materials would be about $9 (I always make money on notions and supplies!).

Sales tax. 

When faced with an incredulous customer I simply say that I have 30+ yrs. of experience and stand behind my work.   I also "work from home", but over the years I've spent a lot of money on accumulating nice equipment and my set up is clean, neat, professional, and I charge accordingly. 

"Cast not thine pearls before swine", my friends!

[byhammerandhand]

I had a guy call tonight asking about chair repair. I told him my price.   He said they were only $39 chairs to begin with.   I'm thinking I should have countered with a higher price as the cheap chairs are always lacking in workmanship and materials and take more time.

I think he really believed I would lower my price if he kept talking long enough and told me the price he paid for them. 

Next, please!

[sofadoc]

I told him my price.   He said they were only $39 chairs to begin with.

I get those a lot.
My response is "Then you'll probably be better off just replacing it".
I even tell them "Hey, if it were MINE, I wouldn't even fix it for myself"
Do people really think you're gonna' fix something for a fraction of $39?

[Mike8560]

I told him my price.   He said they were only $39 chairs to begin with.

I get those a lot.
My response is "Then you'll probably be better off just replacing it".
I even tell them "Hey, if it were MINE, I wouldn't even fix it for myself"
Do people really think you're gonna' fix something for a fraction of $39?

I doubt they would work so cheap at what they do.
Same with boat I'd tell them to buy a new seat from a catalouge them match the unbuyable lieces to them for a less expensive solution

[kodydog]

I had a guy call tonight asking about chair repair. I told him my price.   He said they were only $39 chairs to begin with. 

Next, please!

I love it when you go through all this and they ask, can you just come out and look at it. Like when I see it the price will go down, Like I don't have anything better to do.

Next please, indeed.

[mike802]

Mike 8560:  I totally agree, because someone chooses to run their business with as little overhead as possible does not mean they have to settle for a smaller paycheck.  I was just trying to make the point that overhead is a variable that changes from location to location and even though my business in run from my home, with little overhead the cushion cost still  sounded low. 

[JuneC]

I haven't been sewing much lately - too many boats in the yard getting refit and I have to keep up with the paperwork - so I've been telling my regulars that I'm taking a break from sewing till all the boats get shipped.  Got a call yesterday from one of my long-time regulars begging me to "come out retirement" and make a set of coaming bolsters for him.  He got a couple quotes of over $700 for 3 pieces - 2 at 6' x 10" x 2" and 1 at 18" x 10" x 2" with marine vinyl on front, mesh on the back, and soft cushions - they hang from a welt strip on the top.  For your furniture guys, basically a boxed cushion with those dimensions.  One guy wanted $750 :o and apparently some other work he had in the shop was, according to my regular, sub-par with baggy vinyl.  Yikes!  I want to make a profit too, but that's ridiculous!

June

[mike802]

Wow June:  Wish I could get away with that. 

I was thinking about my last post and all the hidden cost of working from home, some not necessarily monetary.  I no longer have personal use of my barn, garage, or studio, what ever you like to call it.  I could rent it out, or the business should be paying rent on it.  I still have business insurance, I need a phone, I still have to pay the business's share of the lights, garbage, snow removal, building maintenance, tools machinery, etc.  A home based business still has all the same cost of an off home based business, although maybe those cost are not charged at a commercial rate. The only difference is the cost the home owner is willing to cover. 

Signage is very important and now your home has sign's in front of it, not to mention having customers wandering around your property 24/7, because after all you do live there.  You have to listen to the phone ring after hours and put up with family members and customers who for the life of them cant understand why you do not just answer it, after all you do live there.  And yes I have a private line for family, but some refuse to use it.  The cost of a hide-a-way could also be factored in, so you have some place to get away from it all, for us it's a spot at the lake, or the garden at my mothers house, you would be surprised how important it is to have a place you can go to be able to "leave work" for your mental health.  Maybe in the long run it's actually cheaper to have your business at a separate location, if you own the building you might even gain on increasing property value, and I would think it would be easier to sell the business and retire if it is not home based.

My 5 year goal is to get the business out of my home, but with the economy the way it is that might have to be extended to a 10 year goal. >:(

[Highvelocity]

Great discusion here about price...  So many factors to consider...  Some things just take time... measuring and cutting and sewing take time.  The customer is buying your time...So what are you worth??  I have asked myself that question over and over, what is my time worth.  I know some jobs are harder than others and will take me longer than say Mike or a factory.  So again, what am I worth...??  I know my final product is good quality though or I won't deliver it... So on a job like this I would might allow 2 hours for each cushion and charge $35 an hour.  So $70 a cushion.  Now if I can beat 2 hours, good for me...but I'm not getting burned.

[bobbin]

I have a dedicated space for my business, having outgrown the first floor room in our home that once contained it.  Space requirements for tailoring/alterations are very different than those for drapery/slipcovers/soft home furnishings.  My new space has its own electric meter and oil tank, as well.  But this space was a long time coming, too. 

I have always worked by appointment only and have only had to deal with a handful of "drop ins" over the years.  I greeted them pleasantly, asking, "I hope I've not overlooked an appointment!".  "Well, no, I knew you'd be home so I figured I'd just drop by."  "Wait right here, I'll get my appointment book and we'll schedule something convenient for both of us.".  I left them standing on the doorstep while I got my book.  And we made the appointment on the doorstep.  There was no doubt that "dropping by" was not the way things work around here. 

As I work more from home I will set more regular hours but see that maintaining a firm line between "work" and "being home" will be crucial.  I plan to work 4-5 days/wk., including Saturday and Sunday, as I see a "hole" in my area with respect to competent marine canvas repair on the weekends. 

[jsquail]

Great discusion here about price...  So many factors to consider...  Some things just take time... measuring and cutting and sewing take time.  The customer is buying your time...So what are you worth??  I have asked myself that question over and over, what is my time worth.  I know some jobs are harder than others and will take me longer than say Mike or a factory.  So again, what am I worth...??  I know my final product is good quality though or I won't deliver it... So on a job like this I would might allow 2 hours for each cushion and charge $35 an hour.  So $70 a cushion.  Now if I can beat 2 hours, good for me...but I'm not getting burned.

I find this to be very good practice. I just recently priced a job using this method. Its a relatively easy way to price jobs. I took the number of cushions(marine) and multiplied them by the number of hours i thought each cushion would take. Then multiply by shop rate.

[mike802]

I find this to be very good practice. I just recently priced a job using this method. Its a relatively easy way to price jobs. I took the number of cushions(marine) and multiplied them by the number of hours i thought each cushion would take. Then multiply by shop rate.

I think this is absolutely the best way to estimate, but I have taken it one step further.  Over the years I have kept a log on how many hours different jobs have taken.  I started out using one of those yardage charts that fabric suppliers hand out.  After a while, I had done enough of each type of furniture pictured to get a good average for the amount of hours it took me to complete each one.  I then numbered each picture and on a separate sheet of paper I listed the dollar amount for labor based on my average hours worked for each piece.  This was an ongoing project and took several years, but now anyone in the shop can not only give on accurate estimate, but the estimates are consistent from customer to customer.  Before I did this it bothered me that my estimates were not consistent between customers and in a small community people talk and noses get bent out of joint.  The list is not perfect and still is a work in progress because even after 27 years, I still get pieces that I have never done before.