Software pricing

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mayos

MGF, Master Grumble Framer
Joined
Oct 8, 2007
Posts
673
Loc
Clay Center, KS.
We just opened our framing department in November. We purchased one of the framing software packages and are using the default pricing structure. Prices seem high compared to our clothing markup. Have any of you had any experience with the default pricing on these software packages (Ready Frame/Frame Ready)? I guess I'm not real confident with the pricing yet. Are the prices suggested by the software realistic?
I'd appreciate any insight someone might be able to give me. THANKS!
 
mayos said:
Prices seem high compared to our clothing markup.
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Markups in any manufacturing industry are different(higher) than most basic retail operations. Remember there are 2 factors to picture framing..... the manufacture of a product... and the selling of that manufactured product. This is also the same as the restaurant industries where unprocessed is prepared, cooked and presented in a pleasing manner.

In the basic clothing business... you order the finished goods and place them on a display rack to be sold. Ready made picture frames, photo frames, gift items, etc are a similar version of a basic retail operation; thus having similar markups.
 
I guess I need to get myself accustomed to the pricing. It just seemed like $90 for an 18" x 24" frame seemed a bit on the high side, although my customer didn't flinch a bit at the price.
 
mayos said:
I guess I need to get myself accustomed to the pricing. It just seemed like $90 for an 18" x 24" frame seemed a bit on the high side, although my customer didn't flinch a bit at the price.
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See, that's the problem. A price of $90 for an 18x24 frame made out of 1/2-inch plain black moulding, with no glass, mats, mounting, fitting, just the frame, that might be high. On the other hand, if it's an 18x24 closed corner frame with 23k gold leafing, made to order by Marty Horowitz, it would be a bargain. Bargain of the century.
 
The pricing that comes with pos systems is meant only as an example/starting point, and absolutely requires adjustment for your local market value. Every city varies, even at the big boxes.

For example: Is the labor pricing for New York City, Boston, Southern California or is it for TN, KY, NC, MS, LA, AL, etc? (The retail prices may vary as much as 100%, due to market differences) Is the default table for Canada, or USA? Every area will have different pricing methods and markups, considering things like rent, materials, freight, and the local market economy.

POS software is a fantastic tool that will keep you organized and simplify the pricing and ordering process, but it's definately NOT one of those "set it and forget it" situations. It requires detective work, research, and tweaking - IMO. Just like a manual system, it requires the same periodic review/sanity check. Labor and glazing prices especially have a way of sneaking up once in a while.

In any case, welcome to the Grumble and good luck with the new s/w and dept!

Mike Labbe
Moderator
 
A clothing store that offers custom framing??? Thats a combo I have not heard of yet.
 
Yeah...I'm sure it's a little different, but we're used to working with color everyday and making combinations that are pleasing to the senses. And in our display work we deal with proportion, balance, etc. So it's not too far fetched.

Now with all that "stuff" out of the way, the real reason we got into the framing business is that the only framer in our small town went out of business. In a small town you're always looking for something to bolster the bottom line. I've always done woodworking and being the only male staff person in the store, the ladies were looking for some way to get rid of me. So....that's where we're at.:icon21:
 
I just noticed you're from Des Moines, IA. we have a good tuxedo supplier - Skeffington's - we do a lot of business with in Des Moines. My sister also lives in Creston. She works in the Clerk of the Dist. Court office.

Hope you're ready for a bad storm, we've gotten LOTS of ice and it sounds like it's moving your way.
 
In the middle of Montana there's a shop that sells pizza & custom framing
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Now THAT'S my kind of frame shop!!!

Even if the recession hits and people aren't buying frames, they will always be buying Pizzas!!
 
Part of my problem with pricing is that we are the only framers in town. The one that just went out of business had a supply of old moulding that I'm sure they never made any adjustments for pricing increases. This moulding was out of the 1990's. Anyway a nice 16x20 frame w/mat, clear glass, fitting, etc would run around $75. I'm purchasing new moulding at the new prices, so my comparable frame is around $90. I've compared the pricing from the software with the suggested chart in the back of the LJ catalog. We're within a couple of $ one way or the other on all sizes. I have a friend in another town who has been helping me, they just take the length price and multiply it by 3 to get their price. When comparing with them, I'm still within a couple of $ just using the pricing software without modifications.

My main competition comes from Hobby Lobby and a Ben Franklin store about 40 miles away. I haven't had a chance to see where the HB pricing is at. I've noticed they run a 1/2 price promo periodically. My friend says not to worry about that because even with the 1/2 off, we're still under them.
 
mayos said:
I've compared the pricing from the software with the suggested chart in the back of the LJ catalog. using the pricing software without modifications.
The LJ pricing is like the pricing that comes with your program, both are only a starting point. A good general plan is that your COG's should run less than 30% at a minimum.
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COGs Report

j Paul has a good suggestion. You can see your COGs Report by going to the Work Order screen. Then click on the Scripts menu (top of screen) and select Cost Report for Found Set.

Or, in the Work Order screen, click on Print Documents (left side) and select the button for Wholesale Costs.

Both will give you the same report for all of the records in your found set (e.g. 1 of 10 means report on 10 orders. 1 of 1 means just this one order.)

Happy Holidays!
 
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