Preparing For First Sales Pitch and Quote

[Ed Maloney]

I'm putting together my first price quote for a job. It's not a big one, about 12 interior maple signs for a local retail liquor store. I'm thinking I want to start getting the business name around and showcase some of my work since this will be my first gig. I will be supplying a prototype sign and other samples of my laser work.

I was planning to quote the materials at cost, offer a 50-75% discount on the laser time, and charge the shipping costs from my suppliers at cost as well. I will show the actual retail costs on the quote so they can see the what a buy they are getting.

Any advice on this approach?

[Joe Pelonio]

What are you getting for the discount? If he agrees to let you put a small sign there showing your info as the signmaker, it may be a good investment. If you are depending on him to give referrals based on people asking him where he got the signs, keep in mind that it's a liquor store, the customers may not be people that buy signs. At the very least ask him if it's OK to let you take pics after they are up to use in your advertising, or on your website.

[Craig Hogarth]

Like you, I'm new to engraving, but I've been in sales for several years.

If you were approached, I wouldn't offer a discount on anything. If you prospected him yourself, a discount would be OK to offer, but only if necessary for a commitment, to keep him from shopping or if you're attempting to upsell.

It's never a good idea to show a customer your costs if you plan on getting future business. It's hard to charge full retail on something when they already know the costs involved.

I'm in probably the most competitive sector in the sales industry and about 90% of my customers shop me, although they never tell me so. I'm guessing this industry is much different and I'm looking forward to hearing from other members here.

[Bruce Volden]

Ed,


I add my materials cost and shipping together, then up the price of the material 20%. This covers future (short term) materials costs as they WILL go up. Some businesses charge more. Laser work is charged "basically" by square inch (some charge per minute). When I started out I too wanted customers. If you charge too little (just to get started) you will always have customers wanting a "better" deal, if you charge too much customers WILL shop around. Get a feel for your market and stick to it. I had my first machine for 4 months before I got a "good" order, they wanted items cheaper but I held my guns. They stayed with me till they reitired the business. Also be aware of the fact that if you charged X amount for this "sign" why shouldn't this next one be the same price when all they did was change the graphics and fonts.......:eek:


Bruce

[Mike Null]

The business is not about covering costs--it's about making a profit. That's a profit on materials and labor. If they only buy materials are you going to sell them at your cost? Discount your labor? Are you selling inferior product?

Why not get paid for what you're doing. You have a great service and a unique product--why be the Wal-Mart of engraving.

[Bill Cunningham]

Once you lowball a job, don't ever expect to get a decent price for similar jobs from the same customer. Quality work, gets quality prices.. There is an old story that works well when dealing with some new customers..
If you want nice clean fresh hay, be prepared to pay a fair price... But, for example, if you are satisfied with hay that has already been through the cow once, well, that comes a little cheaper..

If your doing samples for a liquor store, show them what laser can do that other methods can't.. Perhaps some fine graphics of grapevines etc. for the wine department
.. Or even a photo of Ernest & Julio:D

[Chuck Burke]

Ed,

I would have to agree with those that said NO DISCOUNT! You are IN business even if you ARE just starting. You need to keep that in mind and run your business as a business. Charge a fair price, make a fair profit provide EXCELLENT service and SUPERIOR product, and you will be well on your way.

As has been mentioned if you start lowball out of the gate, it will be come increasingly difficult to raise your prices.....you will always get the "Well you only charge me "this" much before".....

Just my two cents. Want change?


Chuck Burke
American Pacific Awards
Maui Hawaii

[Jerry Ervin]

I have to agree with Chuck.

His statement is sound advice to any business. It really doesn't matter if you are a barber shop, auto shop, picture framer, or even an engraver, it is harder to increase prices when you start off selling your goods and services at cost.

I have been in business for over 16 years. In that time I have seen more businesses fail from under charging than from over charging.

Jerry

[Phyllis Meyer]

Hi Ed,

I agree with everyone, you have a high quality product, you should get paid for it! I totally understand the "first gig"...I think we all feel obligated to that first customer, someone actually willing to show our stuff, but the advice about it being a liquor store (not a sign shop) rings loud and clear.

Now, this is what I would do: Make up a few signs that read:
"It's 5 o'Clock Somewhere"
"I've Got Friends In Low Places" (There are so many ideas)

Show the owner other items (and those above are great sellers for me). Then you have to decide if they are just going to carry your signs, or will they buy outright from you...? What else does he carry in this store? Do you have a rotary attachment? Beer Mugs, Wine Glasses...The list goes on and on. Good Luck!

Sincerely,
Phyllis:)

Good luck Ed,

[Gary Hair]

One more thought...

If you sell your product based solely on price then what does the customer do when your price is too high? They go to the next lowest bidder.

If you sell your product based on quality and service along with your "specialty" or "uniqueness" then they will stick with you no matter what your price.

Sell yourself, your service and your quality, not price.

And, don't discount!

Gary