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30 bucks........are you kiddin?

Started by sofadoc, August 01, 2014, 02:12:21 pm

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sofadoc

I normally do on average about a dozen salon chairs a month for all the local beauty/barber shops. Various styling chairs, shampoo chairs, and dryer chairs.

Usually black vinyl. And if the back isn't torn or cracked, then I just do the seat only.

But there's a guy in town now who is working out of his garage. He does the seats in black vinyl for $30, PU & Delivery included. That's less than half what I charge.

The PU & Delivery time, and a yard of vinyl alone is worth more than $30.

I'm not worried about this guy. At $30, he'll get tired of working for below minimum wage soon enough. But in the meantime, he'll spoil all the hairdressers in town.

Independent hairdressers are notoriously cheap anyway. Once they get used to paying $30, it'll be tough to get them back paying a normal price again.

Every now and then, a guy like that blows into town, and scoops up all the jobs for a while, but they never last very long.

I just wonder if the idiot even realizes how much money he's "leaving on the table".
"Perfection is the greatest enemy of profitability" - Mark Cuban

MinUph

Or how he is helping to destroy a trade.
Paul
Minichillo's Upholstery
Website

SteveA

August 01, 2014, 03:36:08 pm #2 Last Edit: August 01, 2014, 03:38:20 pm by SteveA
Last week an upholsterer in town called me with an urgent job.  He needed a seat caned in two days.  He never used me before.  I thought I'd give him a really fair rate and draw in a new customer.  I said $ 60.00 + I'll stain it - machine cane.  His reply was, I get any 16 in. seat done for $ 30.00 but my usual weaver  can't do it in time.  

That  weaver is working below cost.  I didn't do the job - ultimately the customer was told she had to wait two weeks and the upholsterer got his low rate which resulted in higher profit.  
I scratch my head wondering how @ $ 30.00 that weaving shop can exist but the fact is - they do. Another issue is structure - do they re-glue and repair wood parts if necessary - do they have the skill ?  How many times the cane outlasts the frame when  cane is installed onto weak structure. This weaver isn't going away, he's been around a long time, and his prices are probably based on volume ?  Getting hard to make a living !
SA

Mike

They got to bedoing it on the side for slittle extra money

baileyuph

I do prewoven caning, this is usually included when an item is brought in for something else.  By the time I clean the grove and set the new cane it can take an hour.   Therefore the price is somewhere around $80 ----depending on the collateral work.

Has caning supplies gone up lately?  I haven't bought any due to working off old stock, but I don't see how the guy can pay for his supplies at that price.

Where does he do the work, in his house?  That is illegal here but some get away with it (zoning).

This sounds like a guy who started lawn care (mowing) business, he actually made a decent living until cheap labor showed up from south of the border and cut the rates.  He is considering getting out now.

Sad, but it happens in so many business.  The taxes on my business have doubled withing just a few years.  It is a constant issue how to do more quicker and better because of cheaper competition.

Sad to hear,

Doyle

SteveA

Doyle
The next time you purchase materials you'll find the prices have gone up.  The supplier tells me that the reason is due to an embargo in the Countries where the supplies come from.
SA

bobbin

I always wring my hands a little when I quote a job and receive, "that's too much money, I can get it done for half that price".  I understand "too much money", but when told I'm twice as expensive as the other guy I wince. 

1.)  am I really that overpriced?
2.)  is my competition paying taxes on that lowball price?

And knowing the low-ballers will vanish like a fart in a stout breeze is small consolation when you'd like to see more work on your calendar.

Virgs Sew n Sew

Man, ya'll are really making me feel bad about my pricing.  Though I have bumped my prices up and will continue to, probably every other month, until I feel like I'm being competitive with everyone else here.  I will say, though, that I would NOT have quoted $30 for a saloon chair (including fabric).  Heck, I would charge more than $30 even if they were providing the vinyl.

Virginia

Darren Henry

Right on!--- If it don't pay; don't play!
Life is a short one way trip, don't blow it!Live hard,die young and leave no ill regrets!

Mojo

That is one of the problems Dennis. These idiots come in, work for peanuts, use cheap sub standard materials, go broke in less then a year, close up shop and move on.

The big issue is that what they leave behind is their rates. They condition the market and now all of these hairdressers will want the same rate/price as he charged. My response would be " He is no longer in business because he was so cheap. I would like to stick around a while ".

Maybe they should start charging $ 3 or 4 bucks for haircuts and see how they like it.

Chris

kodydog

Quote from: bobbin on August 03, 2014, 05:35:29 am
I always wring my hands a little when I quote a job and receive, "that's too much money, I can get it done for half that price".  I understand "too much money", but when told I'm twice as expensive as the other guy I wince. 

1.)  am I really that overpriced?
2.)  is my competition paying taxes on that lowball price?

And knowing the low-ballers will vanish like a fart in a stout breeze is small consolation when you'd like to see more work on your calendar.


Sometimes the "that's too much money" is wishful thinking on their part. If you pin them down and ask if they've received other estimates usually you'll get "will no". And sometimes I'll remind them I'm not the lowest priced but I'm not the highest either. My price is a bargain when you look at the quality work I do. When people ask for a quote they have a preconceived notion what it should cost. And that notion is all over the board. In furniture some think it should be half of new.

We had a lady call last week. We gave her a quote on a vanity seat and she couldn't believe it could cost that much. "But I only paid $40 for it at thrift store." Then she says,"if you can just come look at it." This is the point we generally bow out gracefully but she was referred by a good customer of ours and we were going to be in the hood anyways sooo...

We arrived 5 mins early (I know arriving early is as bad as arriving late but) we rang the bell with no answer. I pounded on the door, nothing. A nice lady from next door came over to see if she could help and she called on her phone and walked around back to see if she was on the porch.

We had a full slate that day so we left for our next stop, which was the hardware store about a mile away. Before we left the hardware store we called again. This is about 1/2 hour past our appointment. There was no answer so we left a message. When we got home she had left a return call saying she was in the shower. Yikes! That's a long shower.

My point is your going to win a few and your going to lose a few. The low-ballers and bargain hunters are usually a big PIA. Best to let them use the "half priced" guy. They'll get a half-assed job but they'll be happy they got such a deal.
There cannot be a crisis next week. My schedule is already full.
http://northfloridachair.com/index.html

mike802

It is so true that people get spoiled by low ball rates.  I think what we are dealing with today is the Wallmart mentality in the general population.  I have people come into my shop and tell me "there just aren't any upholsters around anymore!"  Then I give them a price and they say thats to much and leave, gee I wonder why there aren't many around anymore? 

I have people complain about the junk furniture they have and when they find out it is going to cost more to repair that broken chair than buy a new one, vs having me build one, or buying more junk, they just go buy more junk.  I make and sell high end heirloom quality furniture and accessories, most people in my area can not afford my products, according to them, but I see them buying new Motorcycles, Boats, Snowmobiles, 4 wheelers and what ever new toy catches their fancy.  Anybody looked into the cost of a new boat these days?  Sure they can finance these toys, but I gladly do lay-a-way without interest. 

Caning, I don't know why I continue to do it?  I have to charge 4 bucks a hole to make my shop rate, but usually cut that to 3 bucks and than bitch about it when my back, butt, or feet really start to ache after 12 hours of weaving.  I say never again, but usually take on another job, hoping they will come back for some upholstery, new furniture, or have that rip fixed in their car seat.  Funny thing is, after 30 years I have never had customers over lap, furniture customers stay furniture, weaving stays weaving and auto customers stay auto, weird.  People today have lost sight of the true value of American labor.
"Nearly all men can stand adversity, but if you want to test a man's character, give him power" - Abraham Lincoln
http://www.mjamsdenfurniture.com