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Pricing Help
2′ x 5′
3mm Alu Panel + White frame
Flood coated panel with vinyl + single colour text.
artwork + suply and fit.
Ground level fit on a wall.
Home Counties UK.Still rather new to the sign field but dont want to do myself down.
Any comments appreciatted.Tim.
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6 Replies
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Easy enough to work out mate
Find out what you have paid for your materials, or find out the cost mer sq mtr becuase the price is easier to calculate that way.
Work out what you need as an hourlr rate to stay in business.
mutliply the cost of goods by tour markup. 400% to 600% would be a good markup to start with.
Add that figure to you time spent times your hourly rate.
That is a good place to start, then refine it as your local market can afford.
Hope that helps. The only way you know if your making money is to know what your costs are first. You should not base your price on what others charge because they may have vastly different running cosys to you, and will thus change their pricing formula
Cheers
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shane,
I would agree that a mark up on vinyl by 4-600% is about right,
however I wish I could, but would never get away with chargin my customers £400 for a sheet of dybond that cost £100, I work on About 50% profit on bought in stuff like dibond foamex etc.
Peter -
quote Peter Normington:shane,
I would agree that a mark up on vinyl by 4-600% is about right,
however I wish I could, but would never get away with chargin my customers £400 for a sheet of dybond that cost £100, I work on About 50% profit on bought in stuff like dibond foamex etc.
PeterPeter agree 100% mate. I didn’t make the clear, sorry.
I too markup my substrates by only 50%.
I only charge 400-600% on roll goods.
Thanks for clarifying that.
Rereading my post I realised I didn’t have my glasses on either. My spelling was… well 😳 bad.
I posted a spreadsheet the other day which makes it easier. Gives you the opportunity to fine tune each item to get your sq mtr starting price.
Thanks again Peter
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A 5x material cost factor normally works out well on most jobs , bigger stuff , reduce it to 4x or 3.5x and teeny stuff increase it to 8x or more. Estimate fitting or rigging and charge that out apart from the job itself. What you lose on the swings , you generally gain on the roundabouts with this.
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I was told the other day (wont mention who by but no one here) that to get a gross profit of 40% you have to multiply by a factor of 1.8
Goop.
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quote Forbie:I was told the other day (wont mention who by but no one here) that to get a gross profit of 40% you have to multiply by a factor of 1.8
Goop.
That is about right mate
100 x 1.8 = 180
40% of 180 = 72
It is worth remembering if you are going to give discounts for trade or subcontract work.
If you add 50% on or multiply by 1.5, it equates to a 30% discount.
I know one sign shop that tried to entice the trade to let him do contract cutting. One smart sign guy pressured the shop to give a better discount on larger orders. The sign shop agreed to a further 25% discount off his original 50% on top off the material cost.
He was basically working for nothing.
It is worth keeping in mind when you are negotiating with contract work
OK that is the end of our Maths lesson
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