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Price Wars- Episode 5



 
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Old July 23rd, 2008 Jul 23, 2008 3:56:44 PM -   #1 (permalink)
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Default Price Wars- Episode 5

"Hey Ridgely, I've got an order for A LOT of t-shirts, I'll email you and can you give me a quote? We've had them done by another company in the past, but I want to bring the business to you." Okay I'd be glad to give you a quote.
Order is for 500 gildan g5000 white tees. 4 color front, 1 color back. My quote was 4.61/pc.

Hey, did you get my quote? "Yes I did. The other guy was at 3.25/pc s-xl."
Wow! How can they do it that cheap? The blanks will cost around 1.50/pc to get to the door.
"Well do you give discounts for more shirts? I mean like 10,000pcs ?"
Oh yeah, the price will get lower depending on volume- up to a point.
"Well we're doing 5000 pcs."
Wow! Yeah I guess I could charge 3.25/pc if we're going to do that many.
"Well, I'm thinking of having you do something special for the volunteers, maybe in another color or something, maybe long sleeves..."
Well, okay, but what about the 5000? I want to do the 5000pcs.
"Well we'll see, I'll get back to you."

And so goes another day in the life of a 24-7 t-shirt grinder. Win some, lose some, get some, some you dont get. Damn I want to do those 5000pcs! Maybe somehow I can squeeze them to give me the account? What do you think?
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Old July 23rd, 2008 Jul 23, 2008 3:59:49 PM -   #2 (permalink)
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Default Re: Price Wars- Episode 5

It sounds like they are just going back and forth between you and your competitor, danging this huge order in front of you like a carrot and saying "the other guy said he could do it for cheaper".
 
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Old July 23rd, 2008 Jul 23, 2008 4:28:38 PM -   #3 (permalink)
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Default Re: Price Wars- Episode 5

You were waaaay too high for that order.

I would have been at $4.60.

You don't need customers like that. Let them move along.
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Old July 23rd, 2008 Jul 23, 2008 5:06:40 PM -   #4 (permalink)
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Default Re: Price Wars- Episode 5

Neato you are so right on.. with that..
I outright tell customer .. on t-shirts and signs.. I wont do the bidding war.
You will never become successful just by offering products the cheapest.. You become successful by offering the best product at a fair price.
 
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Old July 23rd, 2008 Jul 23, 2008 5:20:05 PM -   #5 (permalink)
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Default Re: Price Wars- Episode 5

I tell them straight up, I will give you a fair price, but I'm in business to make money. I also tell them "PROFIT IS NOT S DIRTY WORD". They don't go to Mcdonalds and say hey I want 10 cheesburgers and I want to pay .65 cents and not a penny more. They would tell me to hit the bricks. I would tell this customer to not let the door hit them, where the good lord split them. .... JB
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Old July 23rd, 2008 Jul 23, 2008 5:37:23 PM -   #6 (permalink)
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Default Re: Price Wars- Episode 5

Yeah I know. This is a neighbor of mine's, so I would like to work with them. I know it's cheap and I dont want to work for cheap, but...
Anyway I could still make a little money at that price, but I dont like a bidding war, especially at that low of a price and margin. Plus I want to spin that auto full throttle and see if i can print them all in 5 days......


5 days...... hmmmm...... that's a whole week shut down and not doing anything else...... hmmmmmm,
on second thought.... maybe I could farm it out. Better rethink it.

Oh well nothing spent, nothing lost. Either way it goes, it'll be okay- got me for a minute with the big juicy carrot.
Better sleep on it, Got 1200pcs to do in the morning. THanks guys and girls.
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Old July 23rd, 2008 Jul 23, 2008 6:39:07 PM -   #7 (permalink)
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Default Re: Price Wars- Episode 5

Quote:
Originally Posted by out da box
5 days...... hmmmm...... that's a whole week shut down and not doing anything else...... hmmmmmm,
on second thought.... maybe I could farm it out. Better rethink it.
Good for you... that's where my mind was going... locked in - all that time - to a low profit job, while you could have been working higher yeild opportunites.... enjoy that sleep... and higher paying opportunites.
 
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Old July 23rd, 2008 Jul 23, 2008 6:44:29 PM -   #8 (permalink)
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Default Re: Price Wars- Episode 5

If this is for a neighbor make sure, if you farm it out the printer will do a good job. I would not want to put that job in someone elses hands. After all this is your Rep on the line. ..... JB
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Old July 23rd, 2008 Jul 23, 2008 7:12:47 PM -   #9 (permalink)
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Default Re: Price Wars- Episode 5

I would also keep in mind that once you bid low, that customer will always expect you to bid low. Keep your prices firm and your quality the best I dont negotiate prices ever.
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