Volume Framing

[Ron Eggers]

I almost tacked this onto Framingal's post about framing 80 big mirrors. (Sorry, Frank. They seem big to me.) We've talked about this before, but maybe now's a good time to revisit.

These kinds of jobs are pretty tempting, especially when times are slow. (I'm talking about generic "times." I won't presume to know how FraminGal's business is these days.)

I'm guessing most outfits that succesfully bid on these jobs and perform them profitably have a dedcated space for them, probably a dedicated (specialized, not devoted) staff and maybe some extra equipment.

Even when I'm not real busy, a job like this would throw my whole operation into turmoil, so I don't seek them out.

I was thinking about how I would bid for this job if I wanted it. I have a volume discount that is equal to the quantity of identical items, up to 25%. I justify it this way: I'm doing one design instead of 80, I can buy better and I can set up a more efficient work flow. So, if the larger mirrors retailed at $700 each (like the one I just did) I would do 25 or more for 25% off, or $525 each. I wouldn't be thrilled, but I think I could make some money. At anything more than 25% off, I don't believe I could make enough to justify the hassle.

In practice, my volume discount usually involves quantities of identical mats. Once my Mat Maestro's configuration settings have been adjusted for the temperature, the atmospheric pressure, the relative humidity and the lunar phase, I can cut 100 identical mats pretty quickly.

 

[Bob Carter]

Ron-That's a good point. One thing that the non-number driven crowd often forgets is that it is Gross Profit Dollars that pays the bills; not margins or percentages.

A little business once in awhile that generates higher than normal GP dollars is a welcome addition. But only if it doesn't detract from normal margin business.

It's a little like that cruise ship sailing with empty berths. Sometimes it makes good sense to fill the voids with something; the overhead sails with or without you.

The only thing that concerns me is when we continue to provide "overkill materials and technique" (see the thread Ron mentioned) when we know this is a down and dirty deal. I feel confident that these types of clients couldn't care less if it has coroplast behind it, or archival quality dustcovers. I would sure make sure I gave them everything they expected, but probably not much more. Unless they were willing to pay for it.

And I think we all know that answer

 

[Ron Eggers]

I would put Coroplast behind the mirrors to protect the silvering from, among other things, my own handling. It's cheaper than regular fome - maybe cheaper than 3X. I wouldn't put dust seals on them at all. I don't think adequate hardware is "overkill." I'd sure try to use a frame that could support the mirror weight without adding MDF or Luan.

But I get your point, Bob. Volume framing requires a different mindset than the stuff we do when we're trying to separate ourselves from the big boxes. To do it successfully, we probably need to try and be more LIKE the BBs.

 

[snafu]

Last year I did an order for a restaurant chain. It was a 2010 piece order 17x21 outside, custom milled moulding, no glass or mat, 1/4" PVC backing with magnet sheet attached to the front and a custom extruded PVC hanging system for the back that had to be attached with two screws nuts and washers. After days of careful planning my crew (2), several friends, family and I were able to complete the entire order in 12 days after receiving all the supplies. I charged $25.00 each and I estimated the profit to be about $28,000 to $30,000.

Large orders can be very profitable with careful planning. One small error can cost thousands.