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  • Orders from friends

    I finished a commission last night for a handbag (£20), sock elephant (£12.50) and tote bag (£5). It was for a good friend of mine to give to her best friend's family who is leaving for the states. I decided last night that the price I had quoted was far too low for the amount of time that I'd ended up spending on it. All the items were beautifully made - even if I do say so myself.

    In hindsight - even taking into account the 'friend discount' - the handbag alone should've been £30, the sock elephant £12.50 and the tote £7.50 which adds up to alot more than £37! I don't feel taken advantage of as it was my fault for underpricing.

    Anyway I delivered them in person this morning and she was clearly genuinely thrilled and shocked at how nice everything was and immediately placed an order for 4 more bags and another sock elephant. I was well chuffed but didnt give her a price.

    The question is - should I do them at the same price (£20) and cut a few corners or should I hike my price up (£30) and spend the same amount of time on them? It's hard to know what to do seen as she is a friend, but I'm not prepared to spend ALL day on a handbag (-not including time spent choosing and buying materials) and then only get £20 for it! It's less than minimum wage.

    I can't afford to lose the order as even at the lower prices it's worth £92.50 and my bis is only just starting up AND perhaps most importantly she is a very popular person with alot of contacts, so it could in turn lead to alot more orders.

    Personally, I would be miffed at people changing prices on me even though I would understand, but it would make me not place anymore orders in the future and I might withdraw the original order.
    www.belovedly.co.uk
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    Belovedly facebook group

  • #2
    I'd be inclined to talk to her and perhaps say the material prices have gone up (more than feasible as a lot of my suppliers have hiked up their prices recently) and you quoted the prices on her last order from what you paid previously, however now you need to buy new materials you have to increase your prices slightly - be very apologetic about it, add a bit of blah about weakness of the pound effecting fabric prices.

    Personally I think a 50% increase for the handbag might be too much and might end up with her cancelling the order so perhaps meet half way and charge her £25 Again with the tote bag maybe charge £6 or £6.50 and to make your story more feasible put up the sock elephant by a £1.

    At least that way you'll hopefully still have her order but won't be so much out of pocket.
    Visit Natty Netty for a huge selection of Iris Folding supplies

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    • #3
      I agree with nattynetty 50% increase is too big a hike.

      Maybe just adding on a couple of pounds onto each and look on this sale as potential advertising for you.

      Do have a word with her though and let her know that she's lucky she ordered just now as due to the fact that you buy a lot of your supplies from overseas suppliers, the recent drop in the rate of exchange has made the next lot of supplies more expensive. That way she'll know to expect an increase if she orders again but hopefully you'll still keep her as a customer.

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      • #4
        Thanks. Yeah, you have both confirmed my gut instinct. I will put up by £2.50 per bag this time and try to get them done a little quicker. Each time she orders I will put up £2.50 until I hit £30 per bag. It's abit easier to swallow that way. I think I'll say my fabric supplier gave me a discount last time but didn't this time. The whole exchange rate is too confusing for little me to be able to blag without blushing!
        www.belovedly.co.uk
        www.mybelovedlylife.blogspot.com
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        Belovedly facebook group

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        • #5
          I completely agree with NattyNetty and Krafty... I'd definitely speak to your friend and explain about the increase in materials costs, etc and hopefully she'll understand.

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          • #6
            If you think she might bring you some business be sure to tell her the proper prices to quote to her friends then she'll see what a good discount you gave her
            I started off with nothing and I've still got most if left.

            www.folksy.com/shops/fluffysstuff

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            • #7
              What i do for every new client that i meet socially is give them mates rates for there first order but i explain at the time to them to double the price to anyone else who wants one ie saying to them its double if you want another one.
              It usually works and there have not been any misunderstandings as yet.
              Please pass the word.

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              http://valewoodturner.blogspot.co.uk/

              " 200 years of family tradition continued in the only way I know how. "

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              • #8
                Hi

                I personally would be completely honest and say to her that you have given her a Special Rate and that you are happy to make them for her at that rate, but if she is ordering for her friends then give her the real prices!!

                I think she will be over the moon at getting a better rate and will be more than happy to recommend you.

                I am sorry but if I bought something and it went up more than once in a short space of time, then I would not be going back to that person!
                Rach

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                • #9
                  Originally posted by GlamGlass View Post
                  Hi

                  I personally would be completely honest and say to her that you have given her a Special Rate and that you are happy to make them for her at that rate, but if she is ordering for her friends then give her the real prices!!

                  I think she will be over the moon at getting a better rate and will be more than happy to recommend you.

                  I am sorry but if I bought something and it went up more than once in a short space of time, then I would not be going back to that person!
                  I agree. You could still add a nominal amount on - say £2.50 - with apologies for an increase in material costs, but say she is still getting a very special rate for your time on this order. I agree that you must stress that if she orders for anyone else they must be quoted the market price otherwise you will not be able to sustain the business.

                  Linda

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                  • #10
                    I've had this problem too, best thing to do (in my opinion!) would be to greatfully accept her order for the 4 more bags but explain that whilst you were happy to give her a friend's discount for the odd item, you're trying to set up a business and to discount further just isn't an option for you. Be straight from the beginning that you're doing this as a business otherwise you risk friends and family presuming that you'll do things cheap as a favour
                    www.lucyliz.co.uk
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                    • #11
                      I agree with those who think you should be honest, i'd tell her how many hours it took to make and that it meant you were technically working for less than minimum wage to make those for her, soooooo you'd either have to charge her x amount per bag for the new items to make it worth your while, or you could spend less time perfecting them and so they might not be quite up to the same standard but would be the same price.

                      I recently made some jewellery for a friend of mine, she's my best friend who I've known since I was 3, I said I would only charge her for materials if she showed them off and tried to drum up some more business for me, the materials cost about £7, but she said she'd pay me £15 as that would be about what she'd normally spend on bracelet necklace and earrings if not more, when she saw them, she gave me £20 and wouldn't accept any change! she also got me two orders that same day - one for £100! but she appreciates how much time I spent making them, plus she runs her own cleaning business so she understands how important it is to charge for your time etc
                      Nicola

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