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Estimates (Read 1,648 times)
 
Jennifer Hasan
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Estimates
Apr 17th, 2015 at 11:50am
 
I've been asked to provide an estimate for a muddler I make in various quantities: 100, 300 and 500! They asked if I would engrave their logo onto each muddler.

I would like your opinions on the following:

1) Would you give a volume discount?
2) Would you put someone else's logo on your items in lieu of your own?

Thanks,

Jenn
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Re: Estimates
Reply #1 - Apr 17th, 2015 at 12:49pm
 
Not knowing what a muddler was, I Googled it and noticed that Crate & Barrel has wood ones for $9.95

What is your normal price for one of yours? That would determine how much you could discount for large quantities.

As for engraving each one, it would  be quicker to brand the logo.
Companies put others logo on all the time.

Many tires are made by the same company but with a different logo on them.
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Ron Sardo
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Re: Estimates
Reply #2 - Apr 17th, 2015 at 3:50pm
 
Jennifer Hasan wrote on Apr 17th, 2015 at 11:50am:
1) Would you give a volume discount?

Do you realize a reduction in manufacturing costs by doing volume?

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Jennifer Hasan wrote on Apr 17th, 2015 at 11:50am:
2) Would you put someone else's logo on your items in lieu of your own?

This is normal for a company that is giving these out as a promotional item. Think of it like getting a pen with a company's name. They didn't manufacture the pen, they are just advertising their name.

If you are you making these one at a time I would pass.
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« Last Edit: Apr 17th, 2015 at 3:51pm by Ron Sardo »  

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Jennifer Hasan
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Re: Estimates
Reply #3 - Apr 17th, 2015 at 5:33pm
 
Thanks guys.

I don't realize a reduction in manufacturing costs by doing volume, which is why I hesitate to give a volume discount.

I know how promo items work but I suspect that they want to resell them, not give them away. I have to consider the advantages and disadvantages. While I would love to have 500 pieces circulating with my logo on them, the money/client might be worth more.

Thanks again,

Jenn
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Don Stephan
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Re: Estimates
Reply #4 - Apr 17th, 2015 at 7:44pm
 
Happened across a video once of manufacturing of "turned" wooden drawer knobs.  Very long dowel rod auto fed through headstock spindle and gripped at appropriate spot.  One piece scraper came up, shaped the knob, and parted off in about 3-5 seconds.  Scraper backs off, dowel is fed, and so on.

Hard to believe quality of finish would be important if requesting lots of 300-500.  Sooner or later the requestor will find an automated lathe like above and ask you to match price.
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Mike Nathal
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Re: Estimates
Reply #5 - Apr 18th, 2015 at 10:19am
 
Perhaps they could be shipped with a label/card "Hand Crafted by Jennifer Younge for XYZ Inc."
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Kevin Gade
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Re: Estimates
Reply #6 - May 2nd, 2015 at 8:09am
 
My 2 cents,
Some think when you give an estimate that that is your final price.  I my world and estimate is just that. An estimate. On the other hand a quote is a quote, final price. Be sure your customer knows the difference. That can save a lot of misunderstanding between parties.
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Ron Sardo
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Re: Estimates
Reply #7 - May 2nd, 2015 at 9:12am
 
Agreed Kevin, that's why I never give verbal estimates only written estimates.

When I give written quotes I outline what may increase the price so there are no surprises.

Usually the only time a price may change on a quote or estimate is when the customer makes changes, additions or I need to fix something that they provided.
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Re: Estimates
Reply #8 - May 2nd, 2015 at 11:15am
 
Ron Sardo wrote on May 2nd, 2015 at 9:12am:
Agreed Kevin, that's why I never give verbal estimates only written estimates.


A verbal estimate is worth the same as the paper it's written on.
There is a long line of people that have be bitten by doing it (usually only once)
I prefer to have it written down to avoid the "but you said" syndrome.
If you talk to a customer and "say it's probably going to be about $100, but that's just an estimate", all they hear is $100 dollars.
I find it's better to be clear (on paper) and simply avoid the frustration of explaining why the price changed.
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Re: Estimates
Reply #9 - May 2nd, 2015 at 11:33am
 
I got the same thing in the tax office where the receptionist could only say that returns start at $90 for a 1040EZ & AZ 140EZ, and go up from there.  Had a client with 2 rental properties, self-employment, stock sales, and itemized deductions that complained 3 hours later that the return was only supposed to cost $90, not $500+.  He didn't believe that $90 would barely cover my pay, much less the computers, software, rent... 

Told me that he would go get it done at one of the VITA locations.  I didn't tell him that just the W-2 income put him over the limit for VITA income.  He was back 2 weeks later after they told him they couldn't do depreciation or stock sales.  He admitted that the previous year he had paid more than $2000 for a CPA to prepare it.
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Ron Sardo
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Re: Estimates
Reply #10 - May 2nd, 2015 at 12:13pm
 
Ed Weber wrote on May 2nd, 2015 at 11:15am:
I find it's better to be clear (on paper) and simply avoid the frustration of explaining why the price changed.

Even then there can be headaches. If there is a problem that I know will cost the client more I give them a call and ask them how they want me to proceed. If they are willing to incur the extra cost I get them to sign off on the extra expense.

This isn't even foolproof as I found out yesterday. I had a customer try to renegotiate the agreed on price after he saw the invoice. Luckily I still had the product in hand and they needed it today for an event. I wouldn't give it to them until I received a check for payment in full.



JimQuarles wrote on May 2nd, 2015 at 11:33am:
He was back 2 weeks later

I like customers like that because they don't complain after reality sinks in.
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« Last Edit: May 2nd, 2015 at 12:13pm by Ron Sardo »  

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