Activity Feed Forums Sign Making Discussions Job Pricing Pricing Jobs – Increased material costs by suppliers. Views and opinions please?

  • Pricing Jobs – Increased material costs by suppliers. Views and opinions please?

    Posted by Karen White on June 27, 2021 at 2:25 pm

    Hi everyone.
    I know pricing discussion comes up every now and again, but i am more looking for your views and opinions on the sharp increase of sign making materials over the past 18 months.
    vinyl is going up more and more and sheet material and other goods are too and when you speak to suppliers about this. they either tell you all other suppliers will be doing the same soon or another increase is coming. when will it stop?
    anyway, now i have had my rant.

    Does anyone increase their prices to accommodate the increase or do you just lose more margin?
    If you increase your prices, do you tell your customers or just wait till they complain?

    The thing is. all i see are sign companies doing work for next to nothing and here i am looking to put my prices up! 🤔

    Robert Lambie replied 1 year, 1 month ago 6 Members · 6 Replies
  • 6 Replies
  • Jeff

    Member
    June 27, 2021 at 3:05 pm

    Good topic. this is where i am at the moment also. I have made my mind up that my prices must go up but how best to do it is the question???

    I have also been told there are future increases coming and the shortage of some products may hike prices further. I mean WTF!?

  • David Hammond

    Member
    June 27, 2021 at 3:58 pm

    I don’t intend to ever be the cheapest, and we charge a fair price for what we do.

    To some extent we can absorb some of the increases for recurring customers, and have an annual increase for them. New customers get the new price.

  • Jeff

    Member
    June 27, 2021 at 4:23 pm

    I agree David but these increases are not just vinyl but all sorts of products we use daily and they add up fast. i cannot swallow the costs any longer and as karen says, everyone is doing stuff for beer money which is getting worse due to covid.
    i may be able to pass the prices to long term customers as i am sure they will understand. but general enquiries and the passing trade base everything on saving a penny. the argument here maybe “do we want that business anyway?” normally my answer would be no! but these days i would rather take as much as i can get my hands on to pay the bills and i can become picky again next year when things cool down.

  • Graham Scanlan

    Member
    June 28, 2021 at 3:40 am

    Hi Karen,

    Keep to the margins that sustain your business even if it means price increases, anything less is commercial suicide

    At present distributers are being hit hard by manufacturers price increases due to Covid restrictions, a shortage of raw material especially pvc polymer and add to this transport and import issues.

    Oil based products have been the hardest hit, which means big price movements on

    Self adhesive pvc, Foam PVC, inks etc. Other plastics like Polypropylene that are not oil based have still been impacted but not as heavily

    Hopefully these increases may force our industry to look at the pvc alternatives, as pvc waste can last upto 800 years and the “C” in pvc poisons the earth if it’s sent to landfill

    I predict that non pvc products will become more popular very quickly and aligning the correct products that suite the project Will be essential e.g if a customer requires an internal print or short term out door print / graphic, instead of the usual Foam PVC there are now paper based alternatives including water resistant out door and some of these products show a cost saving

    And polypropylene based self adhesive products replacing the usual monomeric/ polymeric pvc we have at present

    Take a look here to see what work we’ve been putting into looking for pvc alternatives

    https://protect-eu.mimecast.com/s/ysRJCq2rzi1nx1tZ6MBZ?domain=vimeo.com

  • Simon Worrall

    Member
    June 29, 2021 at 11:59 am

    The chances are your customers have ALREADY put up their prices for whatever it is they do, and they are expecting to take a hit from you too. Dont be shy, just follow suit.

  • Robert Lambie

    Administrator
    July 4, 2021 at 1:57 pm

    My view of anything that we sell is “a well designed, quality constructed product at an affordable price”.
    I am not interested in selling based on price because what may be profitable for someone, is not profitable for me! I focus on what we are good at and can turn around quickly.

    Like everyone, I am aware of the price increases and the shortages of certain products and We are adjusting our prices accordingly but also looking at what we stock. We have spent the whole covid period bleeding out stock we seldom use and reevaluating how we will do this in future. It’s amazing how much crap you accumulate over time.