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Pricing work – and the damned cheap sign merchants!!!!
Hi all,
I thought I’d share an experience with you from the past couple of weeks.
I had a phone call from a BIG main dealer ( cars ) in Bristol to come in and price a job up for them. I went along, met the MD, and measured up.
The signs were grey 5mm grey foamex with their logo and large black arial letters, all vinyl. The size was 12.5 metres x 765mm and they wanted 2 of them in panatrim aluminium frames to be fixed to the existing fascia (very easy fit – straightforward ).
Anyway I went away and did a mock-up superimposed over a digital pic I took. I returned with the artwork and a sample of the foamex and ali trim and the MD came down from his office into the showroom to meet me. He then said he’d be back in a moment – wanted to show it all to another director…..anyway his P.A. came back down with the samples and said they would look forward to getting it priced up as soon as possible as they were happy with the artwork and the materials. (At this point I was going to ask for the artwork back as well but I thought best not to as it may have upset them and I might risk losing the job, and they seemed like professional people and looked like the job was mine……)
I faxed a quote over to them…. 2 of 12.5m x 765mm signs (approx 40ft x 2.75ft….big signs) at £824 each…..Total £1,648.
I didn’t hear anything back so a couple of days later I rang the dealership and spoke to the MD.
He said they’d had another quote to do 3 of these signs…yes 3 of them…fitted for £1,650..that’s £550 each!
Just to make sure I wasn’t going mad I bounced the job off miketheswine and he said he’d be over £1000 each for this type of sign so I knew i wasn’t far off the mark at £824 each.
The MD said if I could beat the price the job was mine……I said I’d think about it and let him know the next day. I went back to my office and priced the job up using the cheapest materials and it worked out I’d have made as much profit from the 3 cheapo signs as the 2 quality ones, BUT I’d have had to do 50% more work………….
I decided when I moved into this full time that I wouldn’t get into the silly price wars game so I phoned him back the next day:
“Hi, I’ve priced the signs for you and yes I can do them cheaper”
him: “oh good”
“but I’m afraid I’m going to have to decline the job as the materials I’d have to use to do the job at the price you want to pay are not up to the job and I can foresee that you’re going to have a lot of problems with it and you’ll probably be disappointed with the finished job at that price whoever makes it for you”
There was a stunned silence and then he thanked me for getting back to him. I also suggested he get a written guarantee for the job from the people doing it.It was another lesson learned – no matter who the customer is, or how high profile, you can never take anything for granted! (:)
Cheers
Joe
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