I've just quoted for a large order of frames, and I wondered what would be the normal percentage for a deposit would be.
The material outlay reprsents approx.58% of the job cost.
Thanks for any replies.
Why not ask for payment in full when they place the order? If this won't fly then at least cover your material costs, which at 58% are high. Is this just a brokered pass thru deal where you don't even have to touch the product or are you having to add labor?
I see you are located in my old stamping ground ... my parents had a farm at Frampton Mansell (near Stroud) and I lived in that area for most of my early years before moving to the States. My wife's mother still lives in GLoucester.
If your COG is 58% can you share with us how the job could be profitable?
I understand "pass through" but if the job is large and the margins are small, and the job is so large that it will shut down the shop's ability to produce more profitable jobs, I don't understand how it would work.
How did you arrive at your pricing?
My intent is not to flame you but to learn how this works.