Last week I had some punch bags screen printed as a sample test run and to confirm and negotiate a price. The buyers were happy with the finished product and finally negotiated what I thought was an expensive initial price down by a good 30%. I still thought this was high, but you need a starting point.
This was always going to be my starting point price and not the original price as that is how I tend to operate. This week after doing costings the screen printing price does not work and now it is back to negotiating.
The screen printer has already been informed and I know from a gut feel he is not playing the right game. I have been receiving messages daily if I have heard any news so I already know this is a lucrative deal for him and why he wants to know the news.
Having originally cut him off at the knees reducing his first price by over 30% it is now time to tackle the ankles and see how low we will go. When people see brands they get the impression there is money to be made and yes there normally is, but not to the extent you will retire from one job.
When you negotiate a fair price is when both parties are not happy and that tends to be the middle ground and we are far away from that point at the moment. I have no clue what the cost of a screen print even is and that is my next job to find out and then include labor time and then calculate what a fair price would be.
These are not one off jobs that are required and would be continuous so regular reliable work is being offered and I get the feeling this is not being accounted for. I was not born yesterday so do not take me for a fool because once I find out the true costings things will become far clearer.
If I find out he is trying to make a killing off this which I think is the case then the chances are I will find another printer. I have been straight with him this afternoon and told him the only way this deal will happen is to work together. The numbers are big so even if the margins are small then the the profitability of the job is still a decent number.
We will sit down later this week and work from his cost perspective and this way is his only chance of getting the deal over the line. I have the inside information with regard to volumes and if this is going to work I need to crunch the numbers and guide the screen printer on what the prices should be.
Some people just need a little guidance and steering in the right direction and many miss out due to the idea of making a quick buck. The chances are he is the right person for the job and if I do not help him then I have to start the process all over again.
My hunch tells me the bags will all come in as blanks and not pre branded so the bags can be branded according to the orders required. This does not tie certain stock up and makes logical sense as certain clients may be bigger than others leaving branded stock sitting longer than expected. This exercise has peaked my curiosity now and it will be interesting to see what the final number will be and if that number is viable or not.