-
how do you price rush charges
Hi there. Is there an industry standard for rush pricing?
I have heard 50%-60% is standard. I am not sure of the pricing in the UK, but this is supposed to be standard here. It is difficult to go through the stress to produce on time, and then explain that all to the customer.
It is not an issue if it is a quick and easy job that you can fit into your schedule, but it definitely is when all other jobs stop so we can produce a job for one customer due to their last minute demands! How do you charge for that? I certainly discuss this with the customer through the process, but it is a definite area of concern. 😮Just did a large digital print job with vertical banners and a large bunch of temporary signs. Originally job was cancelled and then re-ordered at the last minute. 3 logos to vector, setup of banners, at least 12 layout changes! It was crazy! Layout changes right up until after we closed the day before it was all due, and they were getting on a plane at 11:00 the next morning. Everything else had to be completely put on hold to get it done. I talked about rushes and charges with them, which they understood, but then when the bill came in, of course they have freaked at the amount. I charged them 35% (but I tell them what the industry standard is, so I am kind to them). What would you do??
(hot) -
12 Replies
-
If you have discussed the extra costs with them before hand why are they complaining now. Stick to your guns and insist on payment in full. Next time they muck you about right up until the last minute don’t be so obliging.
-
Hi Phil. They had there employee pay upon pickup so that is all done. That is the good thing about these guys. Now the boss has seen the final bill of what they paid. They are threatening to go somewhere else in future. That would not be the end of the world, however, I have been doing stuff for them for years, it is good money, and they pay me right away. But you bet, I am sticking to my guns.
I have told them each time that they need to provide more time, and it seems to get worse and worse. Original jobs in years past were vinyl, and not difficult, but labour intensive. Even then it was always a panic. Now with digital stuff, the setup is huge. Always lots of sponsor banners, with loads of logos to cleanup and tons of work.
I have explained that when all else is on hold and other customers cannot have their jobs on time, that we have no choice. At the same time it peeves me that they don’t seem to get it even though I talked about it from the beginning.
Do you charge rush charges?? -
I don’t charge rush charges (but probably should 😕 ). If I think someone is unrealistic in their timescale I simply tell them I can’t do the job. However, that doesn’t stop me rushing about like a headless chicken all the time though trying to please everyone – so maybe I should start charging extra for rush jobs 😀 .
-
Hi Janice
All of our work seems to be ‘rushed’ nowadays. Its seems to be the norm – I blame it all on this new fangled technology!
We only charge serious rush charges if we have to work late/overnight/weekends to meet their deadline.
If its unrealistic we politely refuse the work – its amazing how much more time suddenly becomes available. 😀
Cheers. Nick.
-
Thanks Nick. I agree it all seems to be a rush these days. I usually do not charge for it, but this was a serious case of drop everything else, and since they were catching a plane to their convention I had to meet the timeline. It does really anger you when someone says they absolutely have to have it, and then do not come in and pick it up for 3 days! However, that is the business we are in. But these guys have been doing this for years, and always push the envelope, but this was the worst I have ever seen. We were all scrambling to get it done, with nothing else being done at all. I have 4 people working and we were all running around like crazy for them. I also had to not meet other deadlines, and push everyone else back. Customers!, can’t live with them, can’t live without them!
-
quote Janice LeBlanc:Customers!, can’t live with them, can’t live without them!
I totally agree Janice.
Next week I am planning a sale to sell off all the signs I have that were ordered but never collected by my "customers". All I need do is convince potential buyers to change their business names to the names on all the un-collected signs I have in stock that are gathering dust 😕
-
Janice if its any consolation its the same here.
After rushing a job through to meet a deadline we often get a call a week later saying they have mucked up the install and need a tile re-printed!
I think people build in a few days because they have been let down badly in the past.
Cheers. Nick.
-
Thanks guys. At least it feels good to vent it out. Phil, I always get a credit card before I start anything now unless they have a corporate account. Cover your rear end you know. After a bunch of phone calls etc, I love it when they realize I have put it through on their card anyway. It does save trying to get rid of all those signs in a garage sale that no one else wants.
My biggest thing is to find out how much people charge for a rush job (if they do charge that is.) As I said I hardly ever do, but I can’t charge 50 – 60% that is for sure, but there are times when it is justified. I just need an idea of the going rate. But thanks for the opportunity to vent it out. :shoot3:
-
Janice, you’re not alone in your situation.
I have a few customers that I’ve had for years that have needed an ‘urgent job’ in the past, and I’ve worked miracles to get it done. Now, because I did a 24 hr turnaround to get them out of trouble, they think its normal.
I have to remind them sometimes that it is way outside my normal operating terms to do a 24 hr turn around every job. Usually I’ll just ring them and say, ‘yes I can do this in the time frame, but I’ll have to cancel another clients work. It’s my policy to offer that client a discount, but its also my policy to charge the rush job with the discount given and add it to the rush jobs bill. Is that OK?’ (I’ll usually quote a figure thats 20 or 30% of the rush jobs value) Its really is amazing how many times the rush is not as important as they thought.
Other than that, I’ll increase my labour content of the job by 25%. It does not usually worry them if it is genuinely a rush job, as most reasonable people will understand the situation you have been put in.
Sounds like the boss of the company will get a rude shock if he does go elsewhere I’m sure. It sounds like your only error is that you have been too accommodating for too long, with his demanding attitude.
I’d let him find out the hard way, but his pride may not let him come back when he finds the ‘real sign world’ is different. I’d call his bluff, but only if you can afford to lose the client.
I did that last year for a similar client, he walked, and has never come back. I found out last friday he is paying more, and has to wait longer for the shop to turn his stuff around, but he does not want to give me the satisfaction of knowing I was right. I still get on really well with some of his staff (I was with them for 9 years) and they tell me everything anyway, so I’m ‘in the know’ without him knowing about it 😛
Trying to get word to him that I’ve found out. That will really make him cheesed off then :lol1:
-
Janice it down how you word it
Don’t tell them it 35% extra for a rush job, just tell them as it was required for the next morning you had to pay double time to your staff to get them to work overtime to get the job out in time and that meant working most of the night. tell them the quote was based on normal time work and as it was a rush it was 50% extra labour. any other company will have to pay Overtime so they will understand.
Ian
-
I charge rush-job charges all the time, and allow a discount if the job is only due tomorrow… or I should.
Normally I simply bill double my labour charge, everything else the usual price. My reasoning behind this is overheads, materials etc. dont increase in cost if I have to pull an all nighter. (It actually REDUCES your fixed cost pro rata)
We have to pay employees normal wages for the first 8 hours, Time and a Half the next 4 hours, and Double time from then on (and on Sundays/Public holidays) So it is reasonable to all parties involved if the labour rate goes from N$200 to N$400 per hour.
In Afrikaans we have a saying: "Haastig maak Lastig", directly translates to "Speed crates Bother". Spelling mistakes on digital banners happens at 7:30p.m. and is only discovered at 02:30 a.m……
-
Thanks folks. I have sent this customer a lovely note regarding the whole thing, explaining the overtime the other jobs put back. Do they care, not until it comes out of their pocketbook. Hopefully they will get my point of view. If not, so be it, but it has been going on for years, so it will not be a huge loss. They will maybe try somewhere else and realize that I have been really good to them busting my butt trying to get their jobs produced in time. Isn’t amazing how they come back, so we will see what happens. But this time it was chaotic! Thanks for letting me get it out of my system. Venting is good for the soul. Have a great Easter weekend.
:dance2:
Log in to reply.