moulding markup

[woody]

Visited with a fellow framer today who asked me about a particular moulding that he sells for about $19 and some cents per foot. I would sell it for about $29 per foot. Seems he had visited another framer who was selling it for $50 per foot. That's a wide variety of markup. I buy footage and chop and have always marked up from chop price regardless of how I buy a particular moulding. This way I am covered either way. How do grumblers mark up moulding? Do most of you mark up off chop or length, or differently depending on how you buy. The particular framer I spoke with marks 3 times length on cost up to $5, 2.5 on length $5 to $10 and 2.1 on length above $10. He never buys chop. My interest is sparked partly by the fact that my business is flat (way off all year) while his is going gangbusters. Now I'm have doubts about everything I've been doing all these years and wondering if I should rethink everything.

[JPete]

Woody, are you sure his is going like gang busters? If you really want to know about a competitors quality, prices etc. send some one in to buy and foot the bill. Doesn't have to be anything huge but show them some mouldings and make sure it's one of the same that they buy. The guy who charges less may add in other charges, the one who sells higher maybe includes everything in that price.

[Cheryl Crocker CPF GCF]

We buy chop and length and have a mark-up for chop mouldings and one for length. My mark-ups are now 2.5 to 5.5 on length...2.5 for frames running 12 or 13 on up, I think. The point five covers shipping as most of these are monster mouldings or finished corner. I think the 5.5 is from .01 to 1.50 a foot. Everything else in between in .5 increments. Chop is 2.5 to 4 times again depending on the price. This includes carving down corners to psuedo match and a quick touch up with the old rub-n-buff and rottenstone or whatever is on hand. I started out with too low mark-ups and just kept inching it up. I couldn't pay myself on low mark-ups.

[Le]

Woody, My markup is similar to Cheryl's. If I were using the markups of the framer you visited, it would be the same as a 25% discount. I would have to make it up somewhere.

[ArtLady]

I guess I am wondering what the other fellows costs are? Is he getting any special discounts from his distributors? Perhaps he is an LJ partner or perhaps he uses the Michaels school where the difference is in everything but the frame.

How is his location?

Perhaps in his mind he is doing well but in reality has accepted that he needs to make short term sacrafices to build his business. We had an LJ partner that came into our area thinking they would rock the market with price. After three years they were gone. Their exit excuse was they couldn't find any good help. Now we all believe that don't we.

How can you breath new life into your customer base? Can you come up with an uplifting new marketing program? How about a remodel, new carpeting for example or a new seasonal window. What do you do marketing wise? Can we brainstorm and find some solutions for you?

AL

[woody]

I appreciate all these comments. My post was not so much a "how is he doing it" kind of thing as a vent for my onw frustrations. He is doing very well as I saw while in his shop. My own business began a dip last November (40 percent down on gross in Dec 98 and averaging 30 percent down each month of 99) that does not appear to be easing. When you've had consistent increases over the previous years a sudden drop is of concern. You look for answers everywhere and begin second guessing yourself and what you are doing. When someone else appears succesful (and more power to him) you start to wonder if his way is the best way for you. Christmas business this year is already way off. Normally I would be scheduling well into December but right now I am up to about Dec1. We've had incredibly warm weather here and I'm hoping a forecast change might put people in the holiday mood. My only consolation, if you can call it that, is that framing here in Utah is down generally. As I think it through, even lowering my markup will not change things since even that requires people to come through the door. If they don't even giving it away won't change things. 99 has been a major struggle and the only sure thing I know is that I won't face another like it in 2000.

[ArtLady]

Hi Woody,

Try a newsletter or postcard to your existing customer base. Tell them about your new frame corners and/or artwork whatever your focus is. I am sure you can think up something exciting to tell them. Unless of course you already are using this medium.

AL

[Jon Ostrander]

Woody have you considered vertical marketing? I used to own a sports and collectable shop, so alot of what I started with was framing and boxing sports stuff for friends. Once they learned their stuff could be displayed AND protected, it started to grow. Just another idea.
Your comment about next year, was that just a little depression speaking? (I hope) You been too good too long to throw in the towel.


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When you look back it's better to regret what you did, than what you didn't do.




[This message has been edited by Jon Ostrander (edited 11-17-1999).]

[po' framer]

woody, I can't help but think that your biggest business impact is because of where you are, and that there's going to be a whole lot of pent-up demand venting after everyone gets over their Y2Kraziness.

Could be a winter like you've never seen before, bud! Hang in there for another coupla months.

[woody]

Thanks for all the input and encouragement. Utah is a tough market even at the best of times but with a Y2K bogeyman on the horizon it may, and hopefully does, account for the downturn in business. I am hanging on, like many in the area, but only by the skin of my teeth.