Sliding scale vs. Straight markup?

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tnframer408

tnframer408

SGF, Supreme Grumble Framer
Joined
Dec 11, 2001
Posts
1,506
Loc
Knoxville TN
After reading the poll, it seems that most folk here use the sliding scale system to markup mouldling. Others of us use a straight markup, whatever percentage of length or chop that might be.

What are the advantages/disadvantages of each method?
 
May I what you advocate? Since I see you own your own business. I think all of us are different and have different needs.

Some polls leave a few things out. Like retail store front vs home based. Overhead burden, if retail are we a mall or strip plaze or a free standing. All of these can effect the bottom line. What are the target markets? What kind of retail mixes do we sell? Are we frameshops or do we carry other inventory?

Maybe we could give more definite answers if perhaps you could elaborate on your need for an answer to this question.
 
Bob:

As usualy, thanks for the intelligent answer and possible solution.

I thought, and now I read you I believe I'm correct, that the majority of my moulding should be at 3 X chop. Lessser priced items like little Studios, fillets, etc maybe around 3.3, 3.5; big Romas and Larsons maybe 2.8.

Dunno--gotta reexamine more closely.

I just KNEW there wouldn't be a pat answer;; RATS

Now myconcern, though. You state, Bob, it's an ongoing process. And I think you're right. But, I don't want to be jiggering with the numbers too often because often my rrepeat customers will come in and ask for the same matting/framing that their previous job had. And, going back into Lifesaver, I can retrieve all that stuff.

But if I jigger the numbers too much, I might start getting some really uusual increases.

I think, though, since I've started tracking every single sale with COG analysis I'm just about where I need to be.

Tuesday (I don'twork Monday) I might go in and tinker just a teeny bit one more time.

Again, Bob, thanks for the post.
 
I go with Bob, I have a small selected customer base, some of the work is repeats of framing that I would have already supplied these customers, only one customer is ever aware of what the previous price was and is the only one who checks a price, the others just accept what I price the job out at, over the last six months I have moved my pricing up by approx. 80%.

BTW Bob it has primalarily being your prompting and one or two others that that got me over the fear of price increases and encouraged me to work upwards.

I will keep looking at how I price and how much I will charge, on the “length mark up” thread the vote thing, Diver Dave made a remark about having a base charge and then a mark up this make more sense to me than my straight mark up, a straight mark up is ok in the mid range but I was not very happy with it at the small and big size frames, so I will be looking at things again.

I only use a spreadsheet to price we have nothing like FullCal or Lifesaver over here and the software packages that are available are very limited
 
Dermot,

The problems you mention of price mark-ups at the lower and higher ends are among those that Jay addresses in his pricing class. You will be thankful you did if you get a chance to attend his class.

This is not to detract from the advice of our on-line friends, only that it may be the same or a similar system. ;)

Marcia
 
I use a straight across the board markup, using the moulding base list price. Previously I did use a sliding scale but based on my moulding discounted price. Would like to know if framers use list price or their discounted price to calcul;ate their selling price.
 
First: I was asked why I was interested in getting this information.

Pure curiousity. I thought I heard somewhere that the sliding scale was invented by LJ years ago to help framers determine retail pricing. Now, the trend seems to be on a straight line basis. That's it: no ulterior motive,just curiousity. I do, though, like Bob's and Dermot's concepts of either adaptations of both systems or combining the best of both.

Second, I markup on the chop cost of the moulding and any discounts (like ordering by the box, etc) goes into my pocket

Or rather my wife's since she's the accountant.
 
I am fairly new to this game, as I am an artsit with a new gallery. I have been going by my competitors pricing. I now want to offer framing for other peoples art as well. When marking up from chop cost, do you factor in personal or empoyee time? How about pricing for mats, mount board, glass/plexi and "fitting"?

Any advice would be welcome!

Jon
 
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