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#11
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If you are a sub-contractor, your price is your price. If she wants to
discount, that comes off her price and profit. Not yours. I wouldn't make a deal like that. If she has a job for you, price it out and then let her decide if she wants to pay you. Do not cave in or you will be forever in that loop with her. I ran a business for 10 years and found that out in the beginning, especially when they tell their friends that they got this great discount. People learned that they got a great product at a fair price and everyone paid the same, no special favors. Hope this helps, Linda -- Sugar & Spice Quilts by Linda E http://community.webshots.com/user/frame242 |
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#12
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#13
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If you were (are) a full partner in the business this may make sense, but
that does not seem to be the case. As the owner of the business she can decide to discount any job she see fit to, but I think it out of line to ask an employee to take cut for it. -- Ron Anderson A1 Sewing Machine PO Box 60 Sand Lake, NY 12153 518-674-8491 http://www.a1sewingmachine.com wrote in message ... I mentioned that I will be working with an interior designer. The question came up about giving discounts on large orders--say, whole-house refurbishment, where the designer's bill total would be in the $15,000 to $20,000 range. The idea is to make a 'big' client happy--keeping the possible sale by offering the discount. The problem--for me--is that she mentioned a 20% discount, with 10% taken from her cut, and the other 10% from my labor charges. Two things to keep in mind: This will be a total which combines the decorator's usual markups--on fabrics, notions, _and_ on the labor which I do. From my business training, I realize that 20% is a HUGE discount, when some businesses survive on a 2% profit margin. I am not at all anxious to offer discounts on custom labor, as it attracts the sort of clientele which one usually does not want--parsimonious and argumentative. I don't know if she realizes what an...enclave... this town can be, and that word of a bargain travels fast. I have visions of her having to offer discounts just to keep most of her future clients. I realize that thought is putting the cart before the horse, so I need to know: Is a 20% discount outrageous in this context? Should I be expected to soak up half of it? I don't want to be unreasonable; I wasn't ready for this issue when it arose during the interview, but I did tell her almost exactly what I have said above. I do know that she has several other out-sources for doing the sewing, (any decorator should), and I would like to establish a good relationship with her, and have some of the plummy jobs fall into my blindhemming lap. Regular work is a must, and there would certainly be work. Yet, my prices are reasonable, not top scale, and I do not want to wind up feeling like I am working for far less than I should be. On a $20,000.00 job... and, after her markups, I may be getting--what-- a $6 or $7,000 payment for labor? Maybe way less? I may be grossly over-estimating what my work would bring as a percentage. I have no idea what % of this will be for her design advice and assorted markups. $600 to $700.00 is a big bite of that guessed $6,000.00, though. (They call it 'labor' charges for a reason.) I'll have to admit I will do 5% if push comes to shove, but 10% is too much, IMHO. Any pro advice? Am I cutting off my nose? Cea |
#14
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snip
That would be like a grocery store wanting to attract customers (and beat out the competition) by demanding that their suppliers lower the cost of goods so that they can have a sale. Sounds silly, doesn't it?! Sounds silly but that is exactly what happens all the time! Suppliers will cooperate on well thought out promotions and everybody wins. Roger. -- Yarn Forward Your On Line Yarn Store http://www.yarnforward.com |
#15
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I think there are a number of issues here -
first are you an employee or an independent contractor? As a contractor you have to know your profit margin or hourly rate and may be willing to cut it a bit. As an employee, the employer has no right to ask you to take a cut. Secondly, if there is a lot of work it should keep you in business for many months to come. Is that worth a discount to guarantee future employment? The bottom line is, how important is this work to you? Roger. -- Yarn Forward Your On Line Yarn Store http://www.yarnforward.com |
#16
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That is exactly what Wal-Mart does. I demands price considerations to
suppliers. Their volume is so high that they gladly cave in on pricing. That is also how they drive smaller operations out of busines and sometimes cut the profits of suppliers. JMHO, Linda -- Sugar & Spice Quilts by Linda E http://community.webshots.com/user/frame242 |
#17
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nana2b wrote: That is exactly what Wal-Mart does. I demands price considerations to suppliers. Their volume is so high that they gladly cave in on pricing. That is also how they drive smaller operations out of busines and sometimes cut the profits of suppliers. JMHO, Linda -- Sugar & Spice Quilts by Linda E http://community.webshots.com/user/frame242 Yes, but smaller retailers with a well thought out proposal can sometimes get discounts from large wholesalers. I know, we have done it. Roger. -- Yarn Forward Your On Line Yarn Store http://www.yarnforward.com |
#18
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I'm the epitome of the small business - my CPA swear we're a
non-profit. I sell original design patterns and teach/lecture. The patterns of course can be sold wholesale (with minimums) and to distributors (with different minimums). You would not believe the amount of people that want to purchase just one or two at wholesale or distributor pricing. I'm sorry, truly - but I have a mortgage to pay too. Then we get to teaching/lectures. Would you ask the person that's teaching your kids to work at discounted prices? How about the landscaper or electrician? Why is it that so many people think because we do what we do, that we aren't worth a decent wage? I've been sewing since I was 4; custom sewing in my 20's; my 30's saw one-of-a-kind heirloom christening dresses; and late 30's through late 40's my own pattern line and teaching. Honest folks, I've worked hard to get this far - and I continue to work my proverbial butt off to keep coming up with new and different ideas! Discounting: the minute you set that precedent, you'll be expected to do it each and every time. Guaranteed. Don't do it. Annie Wildly Wonderful Wearables Why be boring? Embrace change! www.wwwearables.com |
#19
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You said it perfectly!
-- Sugar & Spice Quilts by Linda E http://community.webshots.com/user/frame242 |
#20
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