Markup on Moulding, Mats, etc

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paraisoframes

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Aug 26, 2008
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41
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Bristol, TN
I am replacing FullCalc with Lifesaver and Framevue. I am in the process of setting up my parameters. I notices that Lifesaver had a 4.3 markup on some of the moulding. But, the previous owner had a higher markup than that!

I am wondering what you guys are using as a markup for moulding, mats, glass, etc.

I do feel a little guilty that the previous owner marked her products up more than 500%.
 
Well, how's the economy in Bristol, TN ???????????????? (part joke)

There is lots and lots of information on this subject - and many classes and articles on it as well.

If you do a search, you will get lots of great input.
 
There are 2 points to consider when marking up merchandise and services.

1 - How sharp were you when you buy your goods
2 - What is the going rate for those goods and services in your area.

If you are a sharp buyer and can get things cheaper than the rest in your area and mark up to the going rate, your markup will be more (to your advantage). Without doing some price checking you are not making a business decision with all the information that might leave MONEY ON THE COUNTER.

I.E. - you have more homework to do and we need more information to advise you.
 
JFeig said:
If you are a sharp buyer and can get things cheaper than the rest in your area and mark up to the going rate, your markup will be more (to your advantage).
Click to expand...

Ditto (almost). When mouldings, glass, foamboard, etc. are purchased by large quantities (especially mouldings... by the"box"), it is a heck of a lot cheaper. This pretty much separates me from the competition. Many shops only order "chopped" mouldings or if they do their own chopping, they only order the footage needed. Lets face it. A moulding, for example, @ $1.00/ft when purchased by the box, may cost you as much as $3.00/foot per stick or $6.00/foot chopped! I find that pathetic. And, "large quantities" doesn't mean 100 boxes or moulding, a crate or foamboard, or a couple of thousand square feet of glass at a time. I buy 5-15 boxes (depending on distributor price breaks) of mouldings at a time. When i need glass... 10+ boxes. Foamboard... 10+ boxes. I do not sell moulding by the "going rate". In my opinion, over a long period of time, it is better to "make a little money at a time on several customers than a lot of money on a few". With the economy as bad as it is and getting worse, so far i have noticed very little change. :popc: Good luck.
 
Another factor to consider in your markups is your fixed costs.

It doesn't cost more to manufacture a frame using a more expensive moulding. But it doesn't cost less using a cheap moulding either. There's not a whole lot of difference in cost between making a 4x6 frame and a 24x30.

Your markup must consider your fixed costs, or you'll be out of business soon.
 
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