customer discounts

[joe]

I know this has been talked about many times but I can't find what I need by searching. I need to know if any of you have a system or formula for discounts for individual customers. People who bring in several pieces at once for framing. Is it tied to total dollar amount, total number of pieces or something different.

I don't have a "policy" on this and I don't want to be surprised and not have a good answer when that time arrives. Hopefully soon!
Thanks.

[Framerguy]

I used to have a written "Discount Policy" in my gallery. It read something like this:

<Center><Font size=5>DISCOUNT POLICY

<FONT SIZE=2>Touch the Wild Gallery tries to give their customers the very best in custom matting and framing. If you desire a discount, please mark the amount of discount and where we should apply this discount in the appropriate areas below.

I wish to have a ________% discount applied to my framing order in the following manner:

(Please check all that apply)

</Center>
1. Loose fitting or ill cut frame miters.
2. Masking/framer's tape mounts on art work.
3. Poorly cut mats with overcuts in all corners.
4. Improperly cleaned glass.
5. Dirt specks on mats and/or glass.
6. Economy fitting with no dust cover and free sawtooth hanger.

Anything other than the very best job we can provide for you must be marked and signed so we know where you desire us to apply the discount on your framing.

<center>________________________________
Signed</center>

I had second thoughts about actually showing this to too many picky customers so I kept it under the customer counter and I DID bring it out for a few of the bottom feeders who came in looking for a blue light special.

In other words, I rarely offered "discounts" to my customers unless it was a job that involved quite a number of framings and then I figured the entire estimate out in a totally different manner than just a few framings.

Keep in mind that YOUR cost of materials remain the same, your overhead remains the same, and the "discount comes out of YOUR profit margin. Unless the job is large enough to qualify for discounts on a "box" quantity of moulding or discounts on quantity orders of mats or glass, you are simply handing over some of your profit to the customer to keep the job in your shop.

The final decision is always yours and you have to decide how much of your profit on any particular job is worth giving away to keep the job.

Framerguy

[Mike Labbe @ GTP]

Love it smile.gif

[Ron Eggers]

Joe,

You asked a serious question and you got . . .
FramerGuy. :D

I offer some discounts based on actual labor-savings. For example: If someone brings in 10 identical items to be framed (indentically,) they'll get a quantity discount. The idea is that I'm doing one design - not ten.

If they bring in 10 different items at the same time - no discount. The design time will be ten times as long.

Sit down, decide on a policy and write it down for your own future reference.

Beware of special groups asking for discounts: designers, UW Whitewater students, professional artists with no resale license, AARP members, AAA members, etc.

[wpfay]

I discount only if I can get a better deal on the purchase of the materials. If I get a percentage discount on a quantity of length moulding, then I can discount the moulding to the customer and still realize the same profit.
It varies from customer to customer, and from job to job.

[Framerguy]

Well, I thought&nbsp I gave a serious answer.

What did I miss here?

Framerguy

[Mike Labbe @ GTP]

When pricing larger corporate jobs we calculate based on actual material & labor costs, rather than what the POS suggests.

When buying in box quantity, the suppliers will usually give you an attractive length price. You save on design time, as well as labor. Once the equipment is set correctly, it's painless to run 20-50 identical pieces through.

[Ron Eggers]

Sorry, FramerGuy.

I read the rest of your post and decided it was VERY serious.

[Bill Henry-]

Customer psychology being what it is i.e. incomprehensible, will cause people to drive 25 miles to get a 25% discount on a $100 item when they can get the same thing next door for $75. – go figure!

The one major thing I learned at the first PPFA meeting I ever attended is that you can discount materials but never labor.

There are some people to whom you <u>must</u> give discounts – your wife's co-workers, neighbors, 15th cousins, etc.

For any of those and others you deem it necessary to discount, make a big deal about discounting <u>each</u> invididual item e.g. 10% off of the moulding, 15% off the mat, 12-1/2% off the glass, etc, but not your fitting charge. Most folks don't care what they are getting as long as they perceive they are being treated as special.

On big competative bid orders (like one item done ten times as opposed to ten items done once) do a cost plus analysis where you will get a fair but not outrageous return on your time and money.

[JPete]

We did a job with a very fine woodworker who is known to be good and expensive, he was making wooden columns for a display of doners for a hospital project he designed but we supplied the frames for it to hold the metal plaques (the me board people). After we had everything figured out, he said oh, add about 20% to your bill for all the time we did planning this. It worked for us. No one even questioned the price. Needless to say we did spend extra time and it involed many frames of different sizes.