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jnapier

First Custom Order! Help With Pricing.

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Hey guys,

 

I have a custom order starting where the client would like 25 units of an existing vessel I have (cup sized pourer), and 25 of a smaller cup to be designed.

Both are very minimal, flat slipcast colours, clear glaze.

 

My question is- my existing vessel is $25 each ordinarily and I foresee the cup would be 16-18$ each ordinarily- would normal etiquette be to decrease this price for this larger order and if so by how much?

 

Very newbie question I'm sorry but I'm a little in the dark. Any help would be great.

 

Thanks,

 

J

 

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Is the client buying the pieces in order to resell them? If so, this would be considered a wholesale order, and your wholesale price should be about 50% of the retail price.

 

Or if the client is not intending to resell, but rather to keep and use the pieces, then no discount is required. Be very careful of offering volume discounts, because you might just encourage the person to order 100 pieces next, with the same discount or expecting a better discount, and then you've really hurt your profit margin.

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Also on the custom designed portion, I strongly suggest getting a deposit of 50%, if not outright charging a design fee once the custom piece is decided upon. Even if the piece is simple and very close to something you already do, the design work will be more effort than actually producing the end work.

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You are not a pottery factory ... By that I mean your costs do not go down with volume.

Since you have to make each one, the price stays the same.

Volume discounts are given when this situation is reversed ... When it is cheaper to make and ship a thousand.

 

I too would ask for a 40 - 50% deposit on the custom part of the order. You will quickly regret not doing so when your client starts saying stuff like ... maybe a little smaller, maybe wider ... how about a little taller ..... do you have any other colors ....

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My spin is a bit different-

My prices are low to start with so for wholesale (they plan on resale) I mark them down 1/3.

Quantity does not matter-1 to 10,000 same price

Get a deposit-50% is the norm.

Mark

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One of the reasons for selling it lower for wholesale is because all of the other components and time suckers that goes into selling each individual pot are removed.  Going to shows, packaging, shipping, marketing, those things are done for random walk by sales, but with wholesale you remove all of those other time and money factors PLUS you are selling more of them.  It seems like a good deal, but be sure that you are not marking wholesale prices for small orders and not marking them too low. You may need to raise suggested retail for the items to allow yourself to be paid appropriately.  

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if you skip on the deposit you could be risking ending up with the order falling through. Once they have placed a deposit they have some money on the line. Situations change and with nothing to lose they could send you a cancellation after you have made the order. this happens more often than you would think. 

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