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Minimum order costs
This a customer I inherited from the previous owner. I supply about 200 signs every 6months. Its not a bad earner as I sub it out to a screen printer.
Ontop of the signs I am often asked to supply stickers 90x75mm, 1 colour. Often only for 10 or less.
Problem is that when I took over the company we agreed to hold their pricing. That was 12months ago!
Trouble is the previous owner only charged 50p incl VAT EACH!!!!!
Its not worth loading the media, printing, cutting, prep invoice, send invoice and often chase them for payment. Let alone make any profit, pay rent, fuel, maintain the equipment!
My terms and conditions state that 1) orders subjected to a minimum of 1 hours labour charge – so I should really be charging 1 hour for tiny jobs. 2) all materials are sold by whole meter.The cheeky bugger’s asked if they order 50 stickers do they get discount.
They have spent about 3k with me over 12months… I think now’s the time to put a stop to this 50p a sticker, no min order shite!
I after opinions on how you handle small orders, and calculate min order charges.
Also advise on how to approach this customer, and enforce it. It’s going to be a big price rise for them.
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7 Replies
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How often do they get you to do the stickers for them David ?? If it’s infrequent surely it’s not to much hastle if they are spending good money on other types of sign.
If you bump the prices up for the stickers then you run the risk of losing all of their work, just something to think about before you quote them for the next batch of stickers.
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Well after twelve months then they are due to go up, we have all had price increases in materials plus you need to increase your take as your cost of living has increased, don’t be frightened to put up costs just do it responsibly don’t take the micky, even the tightest people understand costs are going up. I’ve never had a minimum charge but a sign company I worked for used to have a £10 minimum that was way back in 96.
Steve
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We always use this figure as a general guide in our shop.
a stickers sized 100mm x 100mm would be £60 + VAT for approx 100
we have a minimum order of £15 on cut vinyl, but depends on the job and customer.
OK the customers spends £3K but that’s got to be diluted with these cheap stickers…. so while hes giving it to you in 1 hand, hes taking it back in the other hand.
I would just say, we cannot maintain the prices due to the suppliers putting their material and delivery costs up.
If the stickers are regular orders, then print a bigger batch, sit them on the shelf and take off when he ordered. But still address the price increase.
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They order 200 signs, every 6 months.
Over the summer they order a variety of correx signs, at very short notice. I charge full price for those, but can be a pain when I am busy.
The sticker orders come in as and when. Sometimes they want to change some copy too, so proof’s need sending approving.
Other problem is that these stickers are printed on 1600mm wide material! Although now I have to Metamark high tack vinyl so could use that.
My problem is they might order a few stickers that total’s £5.00, by the time I’ve loaded the vinyl, printed, loaded into the plotter, cut it weeded it, made the invoice, posted the invoice, then chased them for payment like usual. Just seems an awful lot of effort for very little return.
I will increase their price and stipulate a minimum order of stickers as it’s not worth doing for anything less.
Just don’t know what to charge, as it will need to be a unit price rather than £x for 100.
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50p a sticker equates to £75 per metre. A very good price assuming it is on a standard polymeric vinyl like MD5. I personally wouldn’t mention a price increase, but apply a minimum quantity that makes it worthwhile.
Having said that we have 2 Versacamms that can print and cut which changes the picture completely. As Mo has mentioned on previous threads, things like this can be printed on what would otherwise be waste material and put into stock for next time.
Just my take on it for what it’s worth.
Cheers
Gary
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Just checked the last invoice it’s 41p per sticker plus VAT.
They order anything from 1 – 20 and now asking for 50.
Trouble with printing them on waste and keeping a stock of them is that they change the text on them on occasions.
I might try and sell them 50 of each sticker in bulk, and explain that its not viable to print 1 off stickers at low volume.
Need to put in place a minimum order though as I get some really small jobs come in, people wanting their name cutting in vinyl. Usually means stopping what I am doing (and getting paid well for it) to spend 10 minutes pissing around with a customer who want’s to pick the most hideous font imaginable.
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We have a minimum order of £15 + VAT (which may may getting increased shortly) but we tend to use common sense when applying it.
We never stop a job to do a small job like you mentioned but take payment and tell them to come back later or tomorrow. Jobs like this ain’t gonna feed your kids.
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