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how to determine pricing

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Top 150 Contributor
Namibia
Male
Cocco posted on Fri, Apr 27 2012 9:28
finally i got a partner to go in the sigh business with me and finally we purchased a vinyl cutter just waiting for it to come. the link is here file:///D:/Documents%20and%20Settings/Ocean/Desktop/Think%20Investments/www.vinylcutters.co.za.htm http://www.vinylcutters.co.za/ its the pcut630 we are busy registering our company my question is how do you determine pricing. i know its a broad subject so i will be specific do u charge per letter or is there a formula to be used. lets say its a name: coreldraw.com 1m by 500m on white 5 year vinyl. how much would i charge
Creation pcut ct 630 vinyl cutter

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Suggested by artlife

Well, no one can really help much with that, because what you charge will be determined by your labor, materials, and overhead. You need to get that figured out before you open your business. Your pricing will also be affected by local market (competitors) although prices can vary based on everything from quality to turnaround time.

Top 10 Contributor
Pigeon Forge, TN
Male
TAG - gdgmacros.com

Hi

I hope you have a great partner. While a partnership can make startup easier it could complicate things later. A partnership almost always ends bad. You could end up with a fierce competitor shorty down the road. A good woman, like a wife partner, would be better.

 

Put a few prices out there that you feel are very fair and will still enable a heathly profit. You can adjust later.

 

-John

"The best thing about learning is that it never stops, and the rabbit hole will go as deep as you let it."
~John
www.gdgmacros.com

Top 10 Contributor
Virginia USA
Male

Hello Cocco; John is RIGHT it's going to be tough. Good Luck.

George

TheSignGuy

Top 10 Contributor
Calgary, Alberta, Canada
Male
TAG - MacroMonster.com

Cocco:
how do you determine pricing?

Pricing... whatever you AND your customer both agree to.

More important: always create work that you are proud of, where you later on you always think that you'd tried your best at the time.

Top 25 Contributor
Southeast Texas, USA
Male

Giving you a price structure is impossible as we do not have any idea on cost of doing business in Namibia. Taxes, write offs on equipment, and all the other things that make up cost. A sign shop i used to freelance at calculated price on square inches of material used plus artwork. I was not concern with the details but would bet they based the price on total cost of all the costs figured as amount of vinyl used plus profit percentage.

Jack

Lately, I have too much month left at the end of the money!

Top 150 Contributor
Namibia
Male
thanks guys for all your responses. the thing that i really wanted was just a baseline and i think i managed to figure that out. by the way in katima mulilo there is no competition. the nearest is 500km away. ive set a baseline at least. for example. 700mm length by 350 mm height - JEFF HARRISON in white vinyl with a normal font like impacy or arial black (so dont i put a lot of pressure on the cutter blade) so 700+350= 1050 x 35. basically i wanted to calculate the length and width by a figure. for extra weeding i will add more, complexitiy of font and extra colours i will add more. dont know to to figure that one out yet. but as u say, only time will tell
Creation pcut ct 630 vinyl cutter
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