Corporate Account Discounts

[Daughn]

I was wondering what percentage discount everyone gave for corporate accounts. And how many pieces you require to get the discount. We are just entering the wonderful world of corporate accounts, so if you have any tips they would be much appreciated. Thanks in advance everyone.

 

[FramerRandy]

I think you'll find that this varies all over the map. Depends on your cost structure, your goals, your volumn, etc.
My business does a little commercial work. Retail is by far the largest amount. I give a token discount to small "commercial work" and try to be careful on larger ones, so that I don't lose money on them. I'd rather lose the job than lose money on occasional work. I know other frame shops do significantly more commercial work. There strategy would be very different from mine. :kaffeetrinker_2:

 

[PaulSF]

If it's just one or two pieces for an office, there's no reason to give a special discount. If it's two dozen pieces or more, that's a whole different animal. Also, I think you need to gauge whether the initial job is going to lead to more work with greater volumes. My hotel client started out with just 5 pieces for a remodeled suite. That led to 5 more pieces for another suite. Then 3 more pieces for a lounge. Then 50 pieces, which I just finished. And now there is a big order in the wings, just waiting for a room count. Three pieces per room, for as many as 80 or 90 rooms.

 

[brian..k]

I have to say that unless these "corparate accounts" are providing concistent volume you shouldn't discount them at all. After that the volume orders should be priced based on the order itself. Make sure your costs are covered and then determine what you feel is an appropriate markup beyond that. Many corporations are merely coming to you because you are the most convenient shop to them. They typicaly are going to be more concerned that you meet their deadlines than their price points. You shouldn't have to discount them any more than you would a good customer that comes in on a regular basis.

 

[Dave]

You have to determine each job separately. If they are unique and few in number ...why discount at all?

If doing 20 frames all the same treatment ...sure ...stay competetive and pass on some of the economy of scale savings.

Don't forget to get at least half up front. I often quote terms of 50% down/balance on completion/delivery and then offer a 5% discount if paid in full with order.

If you offer this make them understand that they really are getting 10% off the entire job if they pay up front since they would have paid 50% down initially anyway.

No matter what commercail account I work with, if I don't get at least 50% down I'm always in the back of my mind worried about how long they might string me out ...just from many years of experience.

I offer bona fide interior designers 15% off. This is usually justified because they go for higher end framing and, for the most part, are easier to deal with. I still require them to pay a deposit though.

 

[PaulSF]

Always always always the 50% deposit. Always. If I've got to shell out for a couple of boxes of moulding, plus a couple of cases of foamboard and glass, and 50 mats, I need to have those out-of-pocket costs covered. The balance due covers my labor.

Dave, how soon do you offer an interior designer a special arrangement? Do you have him or her prove bona fides for a couple of orders first?

 

[j Paul]

I offer bona fide interior designers 15% off. This is usually justified because they go for higher end framing and, for the most part, are easier to deal with. I still require them to pay a deposit though.

Dave, I haven't had alot of experience with interior designers yet (although my wife is ASID certified).

I find this interesting though as on another recent thread there has been some grumbling about how designers know quality but don't want to pay for it and how much time they take up. Just goes to show that everyone's experience can be different, how we shouldn't make blanket statements.

What is your secret to success with interior designers?

 

[Dave]

...
Dave, how soon do you offer an interior designer a special arrangement? Do you have him or her prove bona fides for a couple of orders first?

I generally have pretty good communication with interior designers and work with individuals or firms that I have worked with for years or they are well known in the local trade. I've never been in a situation where I doubted the validity of who they were and often they'll come in, pick things out and then sometimes bring their clients in for approval.

My design discussion usually centers around their clients decor and tastes.

I don't advertise any discount structure but consider it the norm in our area to offer the 15% discount. This 15% is to cover the designers time (which it really doesn't) and I have no qualms about giving them an undiscounted invoice to present to their clients if requested. Sometimes a check will come directly from the client and I normally know who they are working with.

I also offer them the same courtesy discount for any personal items they do.