Pricing scrap ready-mades

[AWG]

No, we're not calling them "scrap ready mades".

If you cut your shorts and scrap into ready mades, how do you price them? At full custom/retail or at a discount? Do you use a set price (5x7's are $X, 8x10s are $Y)?

What's the biggest size you make? Your best selling size? We're putting mats in them to give it a more custom look, but keeping overall size at 8x10 to keep from hurting cusotm sales.

Thanks in advance for your help,
Tony

[RozR]

Tony,

Discount! They fly outta here. Standard sizes and consider 5 x 5's and 4 x 5's for wedding proof pictures!!! 8 x 10 is good. 8 1/2 x 11 for certificates. Price by size.

I do carry ready mades as well... but the scrap frames are better for alot of things - the fact that they have depth for a frame package unlike ready mades which only house a photo or certificate.

Mine have a label designed off the computer that is somewhat attractive (could use improvement) that states the size, glass, etc. that is adherred to the shrinkwrapped package. The frame is on a backer board - so even if the outer frame dimension differs with mouldings - the opening size and displaying them is easier!!

Hope this helps.

Roz

[GeneWilliams]

We make ready mades from 5 x 7 to 16 x 20. Most of the custom stuff we do is large, so it doesn't hurt our sales. Plus, we often have large pieces of scrap when we frame a 60 x 60, there's four 4 footers!

We put glass or plexi (whatever we have avail), a mat, and a laser printout with our logo and the size of the frame in big writing. We also shrinkwrap them when done. This is a perceived value trick. It looks like a special product, not a SCRAP.

Pricing.....we tried many different formulas. The easiest method and the one we use now is to choose one of these prices: 14.99, 24.99, 34.99, 44.99 or 54.99. I try to choose price from a customer's point of view. Even if I'm looking at a watergilded frame, it may only look like it's worth 24.99, that's how it is priced.

We also have a continual buy one get one half off sale.

We never went into this project thinking we were going to make millions, and we aren't. What we did want and what is happening is getting money back on length overages and mat scrap, as well as saving some sales! Hope this helps!

Gene Williams, CPF
Mitre & Bevel
Cathedral City
and Indian Wells, CA

[PurplePerson]

We make ready made mats mostly in 5x7 and 8x10, and 11x14. Larger than that we do not consider scrap. We have a fixed price for them. Actually 11x14 is not considered scrap, but anyone who does not feel like putting their small matboard away is to make a ready made mat to sell.

We also make ready made frames from 5x7, 8x10 and 11x14. We put glass and foam core in the package, plus a sheet of paper with our logo on it.

[Bob Carter]

Gene has hit on the "essence of pricing" by taking the point of view of "What is it worth?". It doesn't make any sense to price it lower than the clients expectation, nor higher. The validation comes from being able to determine if the time spent is worth the effort for that amount of money.

By the way, the same process works for everything you sell.

[AWG]

Thanks for the insight, guys.

I think a fixed price shedule based on intuition and size - the "what's it worth?" formula - will keep it simple enough. After all, the moulding is already paid for (from the original order) so it's just profit-producing inventory reduction, right?

[Emibub]

I've got to say after dinking around with all this scrap moulding the past year I am starting to be of the belief that once I am done cutting my frame with the length I think I should toss the remains in the bin. It takes too much of my time and seems to produce less than desirous results.

Some of the creations are okay. Making small mirrors out of the really ornate leftovers sells well and is relatively simple to produce. I don't like readymade open backs on pegs or shelves. In fact, I don't have a peg or a shelf in my store. Photo frames need easel backs and something pretty in them. It is one royal pain in the behind if you ask me.

I've been collecting this stuff and planning for it's uses. But I come up short or there are imperfections. It is time consuming. If I sell a ready made for say $20 is it worth my time? All the space required to house the leftovers could be put to better use. Having all this stuff laying around overwhelms my mind with chores.

I saw these leftovers as potential income, now I see it as taking up time and space and having very little effect on my bottom line.

If I had an employee it would be a good chore to keep someone busy with. But it is only me and honestly, I am busy enough.

Sorry about the rant, just thinking outloud.

Gotta start thinking like a retailer.

[ 09-18-2003, 08:58 PM: Message edited by: Emibub ]

[AWG]

That's a good point Kathy, and one of my concerns with this adventure.

We turn out a top-notch custom product; we want our ready mades with the same quality (tight corners, nice paper insert, etc.) NO open-backs - just tabletop frames. We bought a couple dozen easel things from albin industries @ Decor. They're pretty cool and work well with wide mouldings.

But, even though they're ready mades, they take about as long to assemble, clean and detail as a custom frame that I'm curious about pricing them - with half an hour labor they'll get pricey quickly.

I'm going to give it a try, though. With the holidays coming up we may move some as gifts. I like the "2nd at half price" idea, BTW.

Thanks to all,

Tony