?? For Other Pro Sewers Discounts?

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

wrote:

I got home, though, and started mulling it over, and realized exactly
how much I don't know about the ins and outs of interior design, and
needed reassurance that I wasn't being too hard-headed, cutting off my
nose to spite my wallet. It occurred to me that perhaps this was a
standard industry practice--had I known, I would indeed have revised the
prices on the price list I left with her. I did indicate that, if I am
too low priced by far than other interior dec labor, that I would be
revising the price list, so that is covered.

There's one issue that hasn't been discussed. If she tells you how much
you are paid and tells you when you will be taking discounts, you are no
longer an independent contractor and are a statutory employee, and she
will be liable for employer taxes, FICA, and the like. She may be
trying to circumvent that by getting you to agree to it -- or, indeed,
she may be ignorant of this little detail of independent contractor
versus statutory employee status. But it's still not right for an
independent contractor to not have control over how much they make.

--
I know God will not give me anything I can't handle.
I just wish that He didn't trust me so much. - Mother Teresa

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

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

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

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

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

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

You said it perfectly!

--
Sugar & Spice Quilts by Linda E
http://community.webshots.com/user/frame242

On Sun, 19 Oct 2003 19:41:06 -0400 (EDT), wrote:


I mentioned that I will be working with an interior designer. The
question came up about giving discounts on large orderssnip



I'd say: Don't discount. You have to set a price on your skill and stick
to it. Otherwise, you will find yourself doing more and more work for less
and less money

I know how hard it is - I'm self-employed too. But if I caved in to all the
firms that want to pay me less (which is ALL of them) I'd be working 100
hours a week just to pay the rent.

Sure, I lose some business this way - that's the downside. But it's better
than being exploited and paid less than you know you're worth.

Trish