Mon Aug 11, 2003 11:01 pm Author: ruth
Gold star to Lorraine, the sharpest knife in the block...
My error, I left a £20 sundries box filled in on my spreadsheet.
Input substrates £89.91 with 50% markup = £134.87
Decoration £2 per square foot, 8 square feet £16
Logo vectorisation £13.50
Total according to the fomula = £164.37
Inputs
Substrate £89.91
Vinyl 2metres = £3
Tape, water, electricity, Invoice paper etc. £4
Logo assuming I sub it out £13.50
Total £110.41
Gross markup 49% £53.96
Gross margin 33%
This means that for a 1 hour job (2 hours talking and writing about it mind)
We make £53.96 which seems ok...
As it happens we've inadvertantly included a £20 buffer taking us upto
Gross markup 67% £73.96
Gross margin 40%
For 3 or more I've offered a 15% discount which if we examine that as an order for 3 goes like this...
According to my formula
Input materials £331.23
Output cost £419.14
Gross markup 27% £87.91
Gross margin 21%
In reality due to my £20 error
Input materials £331.23
Output cost £470.14
Gross markup 42% £138.91
Gross margin 30%
So from this I can see that my formula is wrong as as it is I would stand to make £87.91 out of half a day's work which is not enough. As luck would have it I stand to make £138.91 which is acceptable I think? It's not that I have low aspirations for making money, it's just that I'm trying to understand the market and where I stand within it. Unlike some of you I can't charge a preium because I'm very experienced and a sign made by me is certain to last a very very long time or a sign by me will be stunningly well designed and enhance the image of a company. I don't work with uncommon materials and I don't provide a fantastic blend of art and signcraft. I've not got wizz bang machinery to knock out jobs in moments flat. I am currently a regular signmaker with a plotter, software, some stock, a workshop and a reasonable eye for what looks good. How much would you charge?
And before you say "If you're happy then..." tell me what would you charge, would you expect to get the job, would you use that to leverage further more profitable work or is this bread and butter cash profit work?