GB GONE Posted January 13, 2006 Report Share Posted January 13, 2006 So far I have been very firm in my pricing. I have 2 very large orders that I am debating on doing. One is a 2500 bait order that will repeat every 3 months for overseas. The other is a 2000 bait order for Canada. Would you discount to these accounts??? The baits are a variety of styles and colors, not just all one color. All have to be packaged "retail" not bulk. Any and all thoughts appreciated. My position has always been...time is $$$$ and our time is the most expensive part of the deal. I hate to turn away the business though... Jim PS Anybody "for hire" out there??? Quote Link to comment Share on other sites More sharing options...
Dungeonhawk5 Posted January 13, 2006 Report Share Posted January 13, 2006 well, are they in a bid gathering stage or are they ready to do it regardless? I dont think on an order that big, a 5-10% would be a big deal. If it were me, i would strongly consider it, as its reoccurring stable business. Put it this way... If you made $10,000 off the same 2500 baits spread out over 12 months, or made $9000-$9500 on one order.. You could invest that money up front and return 5-10% in a midcap fund or something... If I were in your position I would never turn away the business, a reoccuring large order with potential shouldnt be overlooked. 5-10% isnt that much of a dent in your pocket. In my opinion Quote Link to comment Share on other sites More sharing options...
GB GONE Posted January 13, 2006 Author Report Share Posted January 13, 2006 All great points but have you ever been up against a 5000 hand poured bait order...WHEW!!!! Say goodbye to the wife, kids, fishing, eating, sleeping, etc .... BTW...My "day" job would prevent a full out assalt as well....Also consider I have reocurring business of over 500 baits/week presently.... Jim Quote Link to comment Share on other sites More sharing options...
Dungeonhawk5 Posted January 13, 2006 Report Share Posted January 13, 2006 the big order is reocurring every 3 months, indefinately? or only for a year or two? how much do you stand to make from a 2500 bait order? are you logistically set up to have a part time employee? meaning do you have a place not in your home to accomodate another person working? so basically the one contract would contribute 7500 baits a year, how much actual profit do you see from those 7500 baits? maybe now would be a time to consider growing the business into a full time job? all these are my future goals. I am not looking to get rich, but I wouldnt mind making a decent living from it. Heck, ship me a couple molds and supplies and id pour for you for a small percentage... I am not big into this hobby or business yet, but one thing I do know about business is if you have the work, and you cant get it done, you grow and get it done... There are always ways to make it work, you should never turn away business if its there. Quote Link to comment Share on other sites More sharing options...
GB GONE Posted January 13, 2006 Author Report Share Posted January 13, 2006 True dungeon!!!! I really don't want the business to go elsewhere but my biggest concern has always been...QUALITY!!! These guys are coming my way due to the quality they have seen in my products. I doubt that a part time individual could come anywhere close for a long time... I have even talked to (shutter!!!!!!) a company that hand pours stuff for BassAssassin and other companies but was extremely dissapointed in the quality of the samples. It is not just all about the money for sure in this "business"/"hobby". The quality of your work will keep you around OR not keep you around...quick!!!! Unfortunately, I am a perfectionist when it comes to my baits so it will be on me to make these orders go or not. I have also taken steps to grow to a pot or 2 vs the microwave technique which will increase productivity to a certain degree.. Jim Quote Link to comment Share on other sites More sharing options...
Dungeonhawk5 Posted January 13, 2006 Report Share Posted January 13, 2006 im the exact same way ghost... I very much plan to grow this from a hobby in to at least a part time small business... getting a small business license or tax stuff is kinda daunting... For my money you simply cant turn away business... Think about taking a few vacation days to get it done... Thats what I would do on a large order. Hell, even taking a couple non-paid days off would probably be better than not fulfilling the order. Quote Link to comment Share on other sites More sharing options...
millsryno Posted January 13, 2006 Report Share Posted January 13, 2006 Hey Jim, I have done some bulk work and here is how I priced it out. This was for 5.25" stickbaits, bulk packaging, all the same color. 25 pack = $11.88 (.475 per worm) 50 pack = $22.50 (.45 per worm) 100 pack = $42.50 (.425 per worm) 250 pack = $100 (.40 per worm) 500 pack = $187.50 (.375 per worm) 1000 pack = $350 (.35 per worm) Sounds like you are like me and have a "9 to 5". I'm sure if you were willing to make the leap and quit your "9 to 5" you could get more aggressive to keep the orders rolling in. That is a BIG step, though... If you were doing this as your only full time job, you could afford to make a very low profit margin. You would have enough time to do your regular, higher paying jobs and this one. In that situation it makes sense to keep the orders coming in to pay the utility payments. My advise, though, don't get over your head if you ain't going to be making enough PROFIT on it to be happy. It could potentially hurt your image if you were to one day reneg on the deal (and I know you have a terrific image). I know it might sound great to sell $8K worth of baits per year to these guys, but what are you really profiting on it and how much time are you puting into it? Got to also remember another thing, they came to you. They want your quality and your craftmanship. They did not come to you because you are the lowest price. You might have to remind them of this when it comes time to negotiating, but it's the truth. You can't have the best for nothin'. Quote Link to comment Share on other sites More sharing options...
pourboyplastics Posted January 13, 2006 Report Share Posted January 13, 2006 Jim, The way I have worked this out is to give a discount how many packs of a same color and style they buy. I think this works out better because if you need to pour more of one color you just add more plastic, but when you change colors there is more time involved. Some for example if they buy 1-5 packs is a certain price and then 6-10packs I give them 5% off and so on. Just remember when you start pouring large hand pour orders you are not going to save that much more buy buying large quanities of supplies, the way to save is to invest in equipment that can increase production over a certain period of time. I.E. Larger pots or automated machinery. Labor is everything. I started out the same way you have, pouring a few hundred a week, then a few thousand a week, it is true, say good buy to the family and your night life. Quote Link to comment Share on other sites More sharing options...
GB GONE Posted January 13, 2006 Author Report Share Posted January 13, 2006 Thanks all!!! My biggest problem is that my "real" job is REAL good!!!! Great salary, benefits, etc. I will NEVER make the kind of $$$ I make in my job. I actually like my job as well. That being said, I love to pour and would jump ship in a heartbeat. Family commitments and security will hold me back for a while though. Here is what I have tried to negotiate with the orders: I will divide the orders up into colors (exactly as Brad stated...a pot of each color will go a long way!!!) and give the individuals an exact schedule for completion of each style/color. No "special" colors allowed in the orders..all have to be from my color chart. In return, I will give them a 5% discount and give them the option of multiple shipments vs one big one. Should be a win-win and as stated previously, these pros came to me. Even though I may be in the driver's seat, I always try to let the customer feel like they are. Jim Quote Link to comment Share on other sites More sharing options...
Dungeonhawk5 Posted January 13, 2006 Report Share Posted January 13, 2006 sounds like a great situation jim.. hope everything goes well for you... Quote Link to comment Share on other sites More sharing options...
GB GONE Posted January 13, 2006 Author Report Share Posted January 13, 2006 Well, just that easy the deals have been done..... See you guys in a few months!!!!! Jim Quote Link to comment Share on other sites More sharing options...
millsryno Posted January 13, 2006 Report Share Posted January 13, 2006 Was the 5% discount enough to do it? Quote Link to comment Share on other sites More sharing options...
GB GONE Posted January 13, 2006 Author Report Share Posted January 13, 2006 I only offered the one client with the repeat business the 5% discount. The other bit on full pricing!!!! I didn't give up much for sure...except for ALL my free time!!! There goes my tournament schedule for this year!!!! Jim Quote Link to comment Share on other sites More sharing options...
dsmblack Posted January 13, 2006 Report Share Posted January 13, 2006 As a salesperson, I have always been taught not to show a discount up front. You may need it later, if you are still in the negotiating stage. If the guys who are buying from you are happy with your current price and have already agreed to buy from you I would not discount. Again you may need it later if he comes to you in several months and wants to negotiate, because he has found someone who will sell to him cheaper, or something like that. One thing that you may do is give him some free packages of some of your new baits or colors, just to show your appreciation. Price is only a small factor in peoples buying decisions. Quality and good service is more important. Make sure you are providing that, and I am sure you are. Good luck. Quote Link to comment Share on other sites More sharing options...
Kamakazee Posted January 14, 2006 Report Share Posted January 14, 2006 Jim if you need sticks for your order I can make 6-7 thousand a day. Dave www.kamakazeebaitco.com Quote Link to comment Share on other sites More sharing options...
millsryno Posted January 14, 2006 Report Share Posted January 14, 2006 Hey Dave, I just wanted to let you know that you did an awesome job on your color chart. I really like it! Quote Link to comment Share on other sites More sharing options...
alsworms Posted January 14, 2006 Report Share Posted January 14, 2006 I think most people who pour would agree with me when I say that their dream is making this a full time job. Those large orders are really the only way that's going to happen. Like most of the other guys said, figure out some way to get those orders done to keep them coming back. Glad that worked out for you Jim. All the best with that! Chris Quote Link to comment Share on other sites More sharing options...
