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Price increase after 7 years???

Hand Lettering topics: Sign Making, Design, Fabrication, Letterheads, Sign Books.

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joe cieslowski
Posts: 338
Joined: Sun Apr 11, 2004 6:15 pm
Location: east canaan ct
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Price increase after 7 years???

Post by joe cieslowski »

Did this one in '03.

Image

I charged $1,200 then. In your opinion, what would be a fair increase after 7 years.

BTW, I don't have to compete for this job......no cut-rate carvers in my area.

Thanks,

Joe
Makin Chip$ and Havin Fun!
Danny Baronian
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Re: Price increase after 7 years???

Post by Danny Baronian »

HI Joe,

I would'nt base my price on an increase from years ago, unless it's for the same customer, in which case, they would most likely question a drastic price increase.

You've got two things going for you: you're hand carving a good product, and say there's no competition. There are very few producting this type of product, hand carved or not. Of those that do, the quality varies widely.

Never underestimate your competion or your customer. In this economy, someone can always under bid you, and convince a client a lower price doesn't mean lower quality. A lower price always reflects poor quality, or a lot left on the table that should't be.

The attached photo is a job supplied to a customer as a pattern. The client sculpted the center, made a mold and cast a quantity. 36" diameter , 3" thick was $ 2,600 as pictured.

What are the dimensions? For a similar job 1 1/2" thick, 20" in diameter, $ 2,800 would be a base; 3" thick, 40" diameter would be $ 5k and up. Finish would be additional.

Danny
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Danny Baronian
Baronian Mfg.
CNC Routing & Fabrication
http://www.baronian.com
joe cieslowski
Posts: 338
Joined: Sun Apr 11, 2004 6:15 pm
Location: east canaan ct
Contact:

Re: Price increase after 7 years???

Post by joe cieslowski »

Thanks Danny!

It is for the same customer and I also made 2 the last time. Both took less than a week to make.

They are 22" in dia. x 1" thick (mahogany), made in 2 parts.....the circle and soldier.

This time, It will go quicker cause I still have all the patterns.

The guy I'm dealing with is the head of their cabinet shop (they imported him from England). He liked the price and quality last time. That's why he is back to me and he is the one that makes the decision. The school just writes the checks. (Honest)

I was thinking of going up a flat 10% but it kinda looks like I have been undervaluing my work. I guess I'll just have to think on it.

Thanks again for the input Danny!

Joe,
Makin Chip$ and Havin Fun!
Larry White
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Joined: Thu Apr 08, 2004 4:18 am

Re: Price increase after 7 years???

Post by Larry White »

When I first read this, I figured 10% would be reasonable, and not scare your client off.
It would be interesting to see how much the materials have gone up since the first ones.
I so often work on other peoples materials (glass), that my quote is basically for labor and overhead.
I could see adding the 10% to the $1,200.00, then adding an additional line item for the materials.
With your proven quality, and no identified competition, I wouldn't suspect they go anywhere else. They should be used to paying more over time......like daily.

-Larry
Robare M. Novou
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Re: Price increase after 7 years???

Post by Robare M. Novou »

Joe, Did you do two for $1,200? Or one each for $1,200?
And how did you feel after you got paid for the first set of these?
Did you feel like you made out, or did you feel you put too much time into these for the price.

Maybe now's the time to increase the price to make up for any money you did not get the last time.
I would say charge them $1,500, up to $1,750.

And of course, like the others said, don't forget about the increased material costs, or your overhead increases, if any.

Your prior work with this client gives you an edge, for sure, but in these times, as in others, price it seems is what the client is loyal to. In other words...don't get to greedy.

RMN
What's On Your Book Shelf ?

http://www.milwaukeesignworks.com
joe cieslowski
Posts: 338
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Location: east canaan ct
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Re: Price increase after 7 years???

Post by joe cieslowski »

Thanks everyone for the input.

It was $2,400 for the pair and I was OK with that. The only materials were about 12 bf of mahogany and a little leaf.

Even if i double those costs, we're lookin at $60 increase (I have a wholesale source for the mahogany). Last time, I paid someone to "clean up" the copy on their putter so I don't have that cost this time around.

A little side note.....in the last 7 years they have nearly doubled their tuition....nearly $50 G's.......for ONE year of HS.....blows my mind.

I think that 10% is OK on my side and I don't think I'll get a hasle over it.....PLUS, more orders are coming. These are used on lecturns and they don't want the hassle of moving lecturns to different buildings and they are throwing up buildings like they were for FREE! It's the second most heavily endowed prep school in the country.

Ahhhh Life in the connecticut hills.

BTW, I'm making two "Honor Boards" for a different prep school here.....$2,400. Basically just some semi fancy woodwork. Now, this is my third job for local prep schools in 2 years.....sweet! (Thats 3 different schools)

Thanks for your time and input!!


I appreciate it.

Joe
Makin Chip$ and Havin Fun!
joe cieslowski
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Re: Price increase after 7 years??? Update

Post by joe cieslowski »

I recieved the 50% deposit this afternoon.

I decided to go for a 25% increase.... $1,500 each. I checked what gold cost me then and it was $375. I checked my wood pile and I have enough mahogany already in stock. I also found my cost to "clean up" the copy.....$150. That's still on file so no new costs there.

Here is the original art work...

Image

Work is seriously starting to back up now.....spring must be around the corner!!!

Thanks for all the input and emails.

When you work alone, having somwhere to air your questions and doubts is a comfort.

Thank You!!!

Joe
Makin Chip$ and Havin Fun!
Danny Baronian
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Re: Price increase after 7 years???

Post by Danny Baronian »

Great Joe!

Your right, it is nice to have input from others.

Now when they order the next 20 - 30.... I know someone with a router! :)
Danny Baronian
Baronian Mfg.
CNC Routing & Fabrication
http://www.baronian.com
joe cieslowski
Posts: 338
Joined: Sun Apr 11, 2004 6:15 pm
Location: east canaan ct
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Re: Price increase after 7 years???

Post by joe cieslowski »

And who might be that router owner? :lol:

Aside from doing the 3D programing, this might be a bit of a trick to do this lettering.......it goes slightly up on the inside of the curve near the edge....the lettering might get a little chubby in that area :roll:

Joe
Makin Chip$ and Havin Fun!
Danny Baronian
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Re: Price increase after 7 years???

Post by Danny Baronian »

I wouldn't know... :)

If that were to be done, the head would be scanned with a 3D scanner, and added to the background, either like you do in two parts, or one single piece.

The circluar plaque would be a matter of making the base, creating a convex center, and creating the text. That would take about 5 minutes to do. If the text was hand drawn, it would take an additonal 15-30 minutes, for a total of approximately 35 minutes. Text in a cove, curved surface, flat surface, makes no difference.

The final output would not be much different than hand carved, with the exception of the obvious hand tooled marks, which can added after the fact.

The CNC can produce some exceptional work, check out my web site of the city seals. The richmond was created entirely with vectors that were then modeled within the 3D program. This is in no way intended to say it's better than hand carved, just different. CNC work, in the right hands can produce excellent work too.

Danny
Danny Baronian
Baronian Mfg.
CNC Routing & Fabrication
http://www.baronian.com
erik winkler
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Joined: Sat Feb 23, 2008 5:48 pm
Location: Amsterdam Netherlands
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Re: Price increase after 7 years???

Post by erik winkler »

Hello Danny,

Did you got a new website?
It looks great! Nice and crisp phot's there.

Erik
Realizing we are in the 2nd renaissance of the arts.
Learn, copy and trying to improve...
Still in the learning phase ;-)
Amsterdam Netherlands
www.ferrywinkler.nl
www.schitterend.eu
www.facebook.com/Schitterend.eu
Danny Baronian
Site Admin
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Re: Price increase after 7 years???

Post by Danny Baronian »

Hi Erik,

yes I did, thanks!

Sounds like you guys are having fun over there.....with the exception of Pat's sudden encounter with the side walk... and the round trip snowstorm!

The google maps are interesting, especially areas of interest that have expandable thumbnail photos of the area.

Danny
Danny Baronian
Baronian Mfg.
CNC Routing & Fabrication
http://www.baronian.com
erik winkler
Posts: 1097
Joined: Sat Feb 23, 2008 5:48 pm
Location: Amsterdam Netherlands
Contact:

Re: Price increase after 7 years???

Post by erik winkler »

Eventhough we are extremenly bussy here at the school, I will try to post the more interesting stuff within these days.
Pat's encounter is almost healed. There is so much to see here you would not belive it!

We have to go now, because we will go to Praque this weekend and have lots to visit.

Adios,

Erik
Realizing we are in the 2nd renaissance of the arts.
Learn, copy and trying to improve...
Still in the learning phase ;-)
Amsterdam Netherlands
www.ferrywinkler.nl
www.schitterend.eu
www.facebook.com/Schitterend.eu
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