Issue link: https://docs.hic.us/i/403552
shipping rates. Small quantities cost you almost as much in shipping as larger quantities. For example, 1 dozen caps sent COD can easily cost as much as $9.00 in shipping charges. That adds about $0.75 per cap!! Four dozen caps wouldn't cost but about $0.60 more to ship, or $0.20 per cap. So on a per piece basis, the shipping is actually much less for four dozen caps than for one dozen. Third, consider the ideal size order that you would prefer to have, and use quantity price breaks to steer people in that direction. Another aspect of the pricing game that you should address is rush charges. If a customer needs it tomorrow, then you should charge him an additional fee. Why? Because it can and usually does cost you more. For example, a rush should may incur overtime charges from your workers. Secondly, you might have to interrupt another order midstream to change over and run the rush order, and then change back to the original order later. This causes unnecessary downtime. Third, by delaying the completion of your existing work, you may anger someone else, and have to offer some type of compensation such as a discount on their order. And, one last thing about rush jobs, if you don't charge a premium price or fee, your customers will come to expect that to be your normal turn-around time, and will demand it on every order. Once you get a feel for pricing your embroidery and your garments, its time to put it in writing. I strongly recommend that you develop and maintain a printed price sheet. It takes the guesswork out of quoting, and helps you "stick to your guns" when you feel tempted to drop your price. I have also found that customers don't question a printed price nearly as much as a verbal one. Sure, your competitors can get hold of a copy, but they can probably find out what they want to know anyway. (I know of several Embroiderers who will pose as customers to try and find out what you charge.) In addition to a printed price list, you should establish payment policies. This information should be reviewed with each customer when he places an order. Items to include are deposits, payment terms, payment methods, rush charges, shipping, returns, and exchanges. Well, that should just about do it for pricing basics. It's not as hard as it seems, just time-consuming. Once you have your initial pricing structure in place you can always fine-tune it. So get out a pencil, paper and calculator and get to work. The sooner you start, the sooner you'll finish, and the healthier your business will be for the effort. www.hsi.us care@hsi.us 149