Deposits

kalta

Grumbler
Joined
Sep 18, 2003
Posts
42
From
United Kingdom
Hi.

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.

kalta
 

CAframer

SGF, Supreme Grumble Framer
Joined
Nov 19, 2003
Posts
3,834
From
Orange County, CA
kalta

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.
 

UzZx32QU

Founder of the G
Forum Donor
Charter Member
Joined
Nov 29, 1999
Posts
5,014
On that tight a deal 100% or forget it.

framer

58%cog ???? I'd prefer framers welfair or a vacation.
 

kalta

Grumbler
Thread starter
Joined
Sep 18, 2003
Posts
42
From
United Kingdom
Hi Andrew.
The job is near enough a "pass through" deal as you say.
I was thinking about covering my costs, but as you say I could try for full amount, I've nothing to lose.

I'm sure I've been to Frampton a nice area. And I was in Gloucester only today, not much sun there though !!! we've had one of the wettest May's on record.

Thanks for your reply. kalta
 

Rob Markoff

PFG, Picture Framing God
Joined
Mar 8, 1999
Posts
5,179
From
San Diego, CA USA
What is a "large order?"

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.
 
Top