December '20

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Page 90 of 168

A P P A R E L D E C O R A T I N G S T I T C H S O L U T I O N S 8 4 G R A P H I C S P R O D E C E M B E R 2 0 2 0 G R A P H I C S - P R O. C O M • Profitability of your orders – which orders were priced to meet your profit goals, and which came in way above or way below that. Can you determine why the order was high or low, so that you can tweak your pricing accordingly for similar jobs in the future? The burger joints have figured out a profitable pricing solution for their products. Granted, they know down to the penny their fixed costs and have a much smaller range of variables than we have to deal with in our industry. I think that their strategy can be applied to our industry suc- cessfully, however. When you spend a bit of time and do the research into the real numbers of your existing orders, patterns and trends become ap- parent. Take this information and develop the pricing guidelines to display in your business for 2021. Display it in your business and even online. It will make it easier for your customers to do busi- ness with you. When you make it easier for cus- tomers to do business with you, they are more likely to choose you over a competitor that is less forthcoming with pricing information. PRICE VISIBILITY Once you establish the price points that make sense for your business, the next step is to make these prices and core products highly visible in your business. In your retail location, put up a display that features these specific products, then include signs with your new pricing information. You do not have to price every product in your business, just make sure your core products are highly visible and the pricing information jumps out. On other products, clip on a small sign or add a hangtag that says something like, "Need something custom? Ask for a quote!" Add an asterisk to every pricing display so that you have the opportunity to modify the pricing if the order does not fit into the criteria that you have established. A simple statement such as, "*Prices subject to change based on the products and designs requested," gives you a bit of wiggle room for the orders that do not fit the criteria for your established pricing. By establishing and displaying visible prices, you begin to train your customers that your pric- ing is not random. It is not based on the seat of the pants numbers that you just made up. Create an add-on price for oversized designs, additional logo placements, and for names. (Im- age courtesy Mary Mayer, Your Name Here) It is time to set the record straight about what our time, expertise, equipment, skills, and services are worth as apparel decoration professionals. (Image courtesy Erich Campbell)

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