Marc Lizer
SGF, Supreme Grumble Framer
Prices and Profits
This subject is of interest to every retail store and without question is the one reason that the business is not more satisfactory to those who are giving their time and capital to its development. Most dealers mark their moulding from the billing price regardless of their value as sellers. The retail dealer should consider what mouldings will bring joined in frames and make prices on same according to what they will bring than basing selling prices on cost of moulding.
Mouldings that are purchased by retail dealers at from 1 1/4 cents to 5 cents per foot should not be sold for less than four times their cost and then there should be figured a profit on glass and also on the fitting to cover shop expenses. The department stores of our country are making more money out of their framing order counter than they are likely making in any other department in their entire stores. They carry no stock of moulding and are furnished samples by the jobbers, who sell them moulding that costs from one to two cents, joined for four to eight cents per foot and they in turn double this cost as selling price
Retail dealers could by investigation convince themselves that the best competition they have are the department store framing counters, as they make a clean 100% on all odd frames they sell after giving a good profit to, the maker to begin with. The only way to get profit in making up frames is to make a price that affords a profit. Hitherto the dealers generally have been afraid to make a price that gave them a legitimate profit. In making prices the cost should not be considered, but what is the most that can be had for this moulding per foot joined. We know one dealer who has three plain wood mouldings all costing about the same in stained wood, viz.: plain oak, gum and birch, which he charges joined 4c, 6c and 8c per inch and nearly every case the buyer selects the highest price which just about doubles the profit to the maker.
The Picture and Art Trade from time to time tries by "line upon line and precept upon precept" to get the dealer to see the importance of getting a legitimate profit. The volume of business that must be done in an art store compared to the expense of other stocks proves that there must be the additional profit to meet this expense and give satisfactory returns on the investment and time. Some retail stores we have noticed are selling their goods at least 50% less than they should. In consequence after years of hard labor are no nearer meeting their bills promptly than they were ten years ago and all they have to show for their years of labor is a slightly increased accumulation of old stock while they should have a good balance in the bank and be discounting their bills.
[ 09-03-2003, 02:03 PM: Message edited by: Marc Lizer ]
This subject is of interest to every retail store and without question is the one reason that the business is not more satisfactory to those who are giving their time and capital to its development. Most dealers mark their moulding from the billing price regardless of their value as sellers. The retail dealer should consider what mouldings will bring joined in frames and make prices on same according to what they will bring than basing selling prices on cost of moulding.
Mouldings that are purchased by retail dealers at from 1 1/4 cents to 5 cents per foot should not be sold for less than four times their cost and then there should be figured a profit on glass and also on the fitting to cover shop expenses. The department stores of our country are making more money out of their framing order counter than they are likely making in any other department in their entire stores. They carry no stock of moulding and are furnished samples by the jobbers, who sell them moulding that costs from one to two cents, joined for four to eight cents per foot and they in turn double this cost as selling price
Retail dealers could by investigation convince themselves that the best competition they have are the department store framing counters, as they make a clean 100% on all odd frames they sell after giving a good profit to, the maker to begin with. The only way to get profit in making up frames is to make a price that affords a profit. Hitherto the dealers generally have been afraid to make a price that gave them a legitimate profit. In making prices the cost should not be considered, but what is the most that can be had for this moulding per foot joined. We know one dealer who has three plain wood mouldings all costing about the same in stained wood, viz.: plain oak, gum and birch, which he charges joined 4c, 6c and 8c per inch and nearly every case the buyer selects the highest price which just about doubles the profit to the maker.
The Picture and Art Trade from time to time tries by "line upon line and precept upon precept" to get the dealer to see the importance of getting a legitimate profit. The volume of business that must be done in an art store compared to the expense of other stocks proves that there must be the additional profit to meet this expense and give satisfactory returns on the investment and time. Some retail stores we have noticed are selling their goods at least 50% less than they should. In consequence after years of hard labor are no nearer meeting their bills promptly than they were ten years ago and all they have to show for their years of labor is a slightly increased accumulation of old stock while they should have a good balance in the bank and be discounting their bills.
[ 09-03-2003, 02:03 PM: Message edited by: Marc Lizer ]
