Price rises

[markw]

With the Euro at an all time high against the pound many of our suppliers will be looking to pass on this costs to us. How many framers in today's market feel that they can increase prices to cover the added cost of materials?

[Bill Henry]

We don’t have a choice, I don’t think. There are few areas where we can reduce our margins and still remain viable.

When gasoline prices were at an all time high last year, many of our suppliers added a “fuel delivery surcharge”. We adjusted our prices accordingly. When the vendors eliminated the charge, we did not drop our prices.

Custom picture framing is not like buying a gallon of milk or a loaf of bread. Those items are bought nearly ever week, so consumers are painfully aware of price increases. Framing, on the other hand, is a comparatively rare occurrence for most folks.

Most people who have had framing done in the past know that it is expensive, but cannot remember exactly what they paid two years ago, so a slight increase will probably not upset them.

A brand new customer who has never had framing done before will probably have a “sticker shock” regardless if we increase our prices or not.

[griff buch]

Hi Mark W
I for one will be increasing my moulding prices in accordance with the suppliers new prices. If and when the pound returns to its former glory will the prices reduce? The 10% extra on the moulding cost of an average £60 job will probably be less than £1.The customer will not notice this increase and over the course of a year it will be a substantial amount of money that you will be down. (It's the same when I hear framers say they knock off the pennies or round down the price to make an easy figure- the customer saves a few pennies and the framer loses zillions ) Also, as far as I am aware, we still have inflation and therefore you have to keep upping your headline prices - you can always come down but you can't go up!
Anyway if you have a computer programme the changes will be easy to accomplish

[kev@frames]

good thoughts Griff.

As good business practice, shouldn't one be charging the maximum your own market will take, regardless of the materials?

If, for example, your frame retails at £60 now, and it still sells at £70 next week because materials have gone up by a couple of pounds, does that say that you could have been making an extra £10 on each one before?

Most of us are too cheap anyway. Thats why there are no big picture framing chains, and thats why very few of us have ever had two or more shops on the go. Because we dont charge enough.

I dont reckon i'd be far off the mark saying that if some people's workload suddenly doubled, and they had to take on staff, they would still have to put their prices up to pay for the staff. Now what does that say about the pricing policies (and business plans) of a lot of framers? It says they are working for peanuts, either by choice or because its a hobby for them, not a business.

Framing is mostly labour anyway, people neglect labour costs and overheads and focus on pence-per-foot when they ought to looking at how many pounds(or euros)-per-hour it actually costs them to make that frame. Thats just the way i think, anyway.

I love Bill's term "Sticker Shock"

[Keith Hewitt]

Most of us are too cheap anyway. Thats why there are no big picture framing chains, and thats why very few of us have ever had two or more shops on the go. Because we dont charge enough.
:

Kev is absolutely right.............it reminded me of the lovely story a local framer told me.
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Lady came into his shop to pick up 2 pics. Oh you have done a nice job, how much do I owe you. Jack replies £60, so lady writes out cheque and Jack puts it in the till. Later in the day his wife says " I think we are too cheap!" Jack says and what makes you think that? Wife replies " That cheque is for £120." -
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And if they do complain ask them how much they pay for a meal out. Then ask them what that meal becomes the next day. The picture you have just framed will last longer than them. Its a bargain!

[Bill Henry]

When people complain how “expensive” a quote for framing is, I try to joke them out of it.

“Two hundred dollars? Heck, this frame will last fifty years; that’s only $4.00 a year. You can’t even rent a video for that anymore.”

It works … sometimes.

[griff buch]

My favorite line is to ask the customer how much the tank of petrol cost for their car ( often a 4x4) which I can see parked outside.

[kev@frames]

bill and griff - now we are talking thats the way to do it. i wish i was a quick witted with customers. This is a post that every framer should show his/her counter staff.

[markw]

Perceived value - a topic that has come up a few times on this forum. We are in changing times and perceived value is the questionable factor when dealing with the more financially challenging customer. I have no problem explaining why my framing costs a fair amount of money - but I know that some have little perception and explaining does little to help them. The answer to increased cost of materials is always to reflect that change by increasing the price you charge - maintaining your margin. Personally I think there's good reason to actually put prices up a bit more - then discount a little. The end result being a happy customer - and happy framer who is successfully maintaining a good margin.

I dont often feel sorry for my suppliers - but the present exchange rate must be a real nightmare for them - and many have absorbed that cost for a while. the reality of business is that we all need to survive - I want to know that my suppliers will survive - my business depends on them as much as it does customers.

[Keith Hewitt]

I know a smart framer in S'pore - Joe Lim - he really knows how to handle the "Can you knock a bit off" type.
He works out the price, and quotes the customer, and then puts a price about 10% higher in his calculator and leaves the calculator on the desk. Joe Public asks for a "discount" and Joe says " Please dont embarass me I have already rounded the price down to what I just quoted you. Look here is the correct price and shows them the calculator. They see the higher price and simply accept the verbal price - but they go away happy

I watched it in action with a well known local business man whose wife brought in her paintings to be framed, and it was obvious the husband was keen to use his negotiation skills - but even he fell for it!

[Not your average framer]

There's some kind of rule about this, which says something like this:

If you increase you prices until you lose perhaps 5% of sales due to the price then those sales which still remain will result in far greater earnings than if you priced your work to please all possible customers.

When I had a heart attack about 5 years ago, I was struggling to work at all after coming out of hospital, due to being so weak. So I put my prices up, hoping to get a lot less work. Unfortunely, I got even more work.

Most of us are too concerned about losing orders to competitors, when it does not always work like that in all areas. If you are working too hard, then you probably are also too cheap!

[Roboframer]

What does anyone think of a company that raises their prices, and I mean dramatically, without informing you - you don't find out until the invoice arrives?

And you have, of course, priced the job on the company's current price list.

Happened to me this week and the offending items are being sent back - and I'm not interested in re-packaging them or making arrangements with carriers either. The rep can stuff them in his car!

[Bill Henry]

What does anyone think of a company that raises their prices, and I mean dramatically, without informing you - you don't find out until the invoice arrives?

Most of our vendors are very good about giving us advanced notice of at least two weeks, but more commonly a month.

I pickup up a new line of moulding from a sales rep, and priced my corners on the rate sheet he gave me.

Only after I had sold a rather large order did I happen to notice that the rate sheet was almost two years old. I went on line to find out that the company had raised their price by almost 25%. By that time the moulding had been shipped.

When I received the invoice, the price had gone up by another 10% from the on-line posting.

I ended up just breaking even on that order.

I was so angry that he next day I removed all of the chevrons from the wall and reamed out the representative and told him that he was no longer welcomed in my shop.

[markw]

Bill, rate sheet - is that something you use to keep you warm whilst looking at your price list?

[Bill Henry]

Bill, rate sheet - is that something you use to keep you warm whilst looking at your price list?

What, you thinkin’ I’m talkin’ funny just 'cus I'm on the far side of the Atlantic?

Well, psthbbbt! to you, pal!

[markw]