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  • Powder coated signs with fixings what mark up?

    Posted by Jean Oakley on April 19, 2023 at 10:01 am

    As title. I don’t often order in ready made sign blanks but occasionally i have to. Just wondering what sort of mark up you put on these and how you come to that figure. They seem (to me) really costly, im therefore only adding apx 20% on top plus the graphics that go on it. Example A £400.00 sign is giving me £80 profit which even writing it seems pretty low. I don’t want to over price myself but its alot of faffing about for such small profits. Would be good to know what the average rate is. Appreciate any thoughts you all have jean

    David Hammond replied 1 year, 1 month ago 5 Members · 6 Replies
  • 6 Replies
  • Phill Fenton

    Member
    April 19, 2023 at 2:37 pm

    I mark up by at least 50% then add on the cost of graphics and installation. Anything less and it’s not worth the trouble. How do I arrive at this figure? Consider the retail environment. A shopkeeper will mark up goods anything from 50 to 100% and I believe this is a similar scenario. Don’t forget to add on the cost of delivery for the blank as well. You’re in it to make a profitable and sustainable business, anything less and you run the risk of going out of business

  • RobertLambie

    Administrator
    April 19, 2023 at 6:34 pm

    I totally agree with Phill, you want a “minimum” of 50% markup. In most cases, I will p[ush for 100% markup on what I am buying. And this is with good, repeat customers. otherwise, it’s 100% and paid proforma.
    You then start adding the price of your graphics and all else, again, as Phill has said.

  • Peter Cassidy

    Member
    April 20, 2023 at 12:40 pm

    I agree, if your forking out of your own pocket 50% is the minimum you want to be asking for. Then you add on all the stuff you provide. I request a minimum of 50% of the overall bill before doing anything, the last thing I want is for the customer to cancel for any reason and I am left with part of their sign which I have already paid for from a trade supplier.

  • David Hammond

    Member
    April 20, 2023 at 6:08 pm

    Let me get my pedantic thing out the way, there’s a difference between Markup, and margin.

    Cost £100 + 50% Markup = £150

    Cost £100 + 50% Margin = £200

    If buying in a blank like that I want 50% MARGIN (ie double its cost) minimum 40%

    That said it’s open to adjustment.

    You could have spent, an hour, or so ringing suppliers for prices, chatting to the customer, and your profit doesn’t cover the cost of the time invested in the sale.

    If its costing you £30 an hour in wages and overheads, it’s pointless spending an hour on a £25 sale.

    I like to look at how many ‘hours’ I’m making, or bigger jobs how many ‘days’, and weigh up is it worthwhile.

    Another thing I do is compare the profit, in your example what would that £80 profit actually get me? A meal out? A concert? (Watever you enjoy) Weigh up the work involved and see if I think the time and effort is worth the equivalent.

    Look at my post about wages in the industry, if you employed someone on £28k+ a year, that £80 isn’t going far.

    There’s also the perceived value, they’re getting something that is more elegant, durable, than a cheap composite sign with a flood coat vinyl.

  • RobertLambie

    Administrator
    April 20, 2023 at 7:48 pm

    You are right, they are different, David.
    OK, let me correct myself in a clearer way. 😀

    If I have to spend £100 for a product from a trade supplier, I want £200 for that same product, from my customer, paid proforma. Obviously, you also have to add your services and prices for the graphics on top of that, to reach your overall price to the customer.

    You will remember from my wrap training courses.
    The first part of pricing a colour change wrap is to:
    * work out the linear metres of vinyl required.
    * add a minimum of 2 metres more, on top of that.
    * take the total cost of the vinyl, and double it!
    and that’s just for the price of the wrap vinyl. which is where 90% of the wrapping industry gets wrong!

    There are so many variables to take into account when pricing jobs.

    • David Hammond

      Member
      April 20, 2023 at 8:04 pm

      I just wanted to clarify, the adding 50% can be interpreted two ways.

      Your right on markup on materials, my beef is where there’s no accounting for time, or the costs & overheads associated operating a business. So you can double the material costs, but if it take 3 days to fit, you need to cover the costs + profit of the time. Just because sticker Steve charges £15 an hour doesn’t mean you should too.

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