Tack shop pick up drop off...

[awharness]

I know this is a topic that is talked about and talked about, but I feel that this is a differnt angle on it. PRICING. I have an offer to do a pick up drop off service at a tack shop. They want to charge me 10%, so I need a set price list. I would like some input. It is a typically high end Hunter jumper dressage market. No tooling or creative work, just basic repair and fabrication. I know I have to charge 100% mark up on materials and hardware, but how much for labor?

would 12.50 min on labor + materials... which would equate to like 50 an hour plus materials? any input would be welcomed...

THanks

-Andrew

[barra]

When I have in the past had similar arrangements with local saddleries I would never accept them charging me at all. What I was doing was providing THEM, the saddlery a service by in effect bringing in extra people into their store. People would go to their store because they knew they could get their saddlery repaired there. Invariably while the customer is in store either dropping off or picking up they would browse and often buy something even if it was a cake of saddle soap or a curry comb that would not have been sold if not for the fact the customer went there for the repair.

As for an hourly rate, I think a lot depends on where on the globe you live but personally I would not get out of bed for 12.50 an hour.

Just my 2 bobs worth.

Barra

[Andy]

Andrew,

It's like we JUST spoke about this! (FYI: I know Andrew, he is from my neck of the woods, we share the same first name, and the love of leather...he also likes my machines! He does the horsey thing, I do the firearms thing)

Anyway...

$45-65 per hour, yep, seems high but you have a web site, a TON of machinery, the leather and fixin's to get a GOOD product out that is WELL MADE.

My customers balk, but they bring their cars and trucks in to be serviced for the SAME hourly price! Not only do I have the full array of tools that their mechanic has, but all the machines, tons of leather, thread, fasteners that I stock on MY nickle for THEM. Selfish, perhaps, but you have a skill, charge for it.

Hope that helps,

Andy

PS Yes, you can use my Adler...

[$$hobby]

i agree w/Barra. i feel that you are providing a service to the shop. I can see if you end up taking up selling space for the projects to p/u or drop off.

if the shop wont budge, there are probably others that will work w/you.

[Blake]

Just a few thoughts here.

I have been on both sides of this issue so look at it from the stores perspective too. Who is responsible for collecting your payment from the customer? Who is responsible for writing up the work order? Who is responsible for storing the repair until it is picked up? Who is responsible for providing a place for all of this to happen? Who calls you when a repair comes in? Who calls the customer when a repair is ready?

Even the time spent taking in and writing up a repair takes up an employees time. I have never minded giving a retail store a reasonable percentage as they have given me an outlet that I would not normally have. I also found that over time especially with custom work the customer would bypass the store and contact me directly.

As far as an hourly wage you have to decide what your market will bare but I would adjust it upwards to counter whatever the percentage is that you give the store. It costs you money and time too just to make the pick ups and deliveries.

Lots of Tack stores have this service for boot repair as well as tack repair but there has to be incentive for both of you to make it work. If there is no incentive for the store then it will grow old fairly fast. A percentage also obligates them somewhat to the arrangement.

Offering this service from the stores perspective doesn't actually bring that much new business to them as much as it provides a service to their existing customer base and as we all know its important to keep that base constant and happy.

Another thought is ......... How much leather care products will you sell for the store by recommendation on the invoice when a repair is picked up? If it is a reasonable amount then you may want to re-negotiate and have them wave the percentage or increase your prices a bit more for your time spent selling their products to the customer.

Is 10% of a $50.00 repair all that much for everything that has to happen on the stores part? Is the $50.00 repair really worth all of the time and travel that you endure ? I would look at the volume potential as someone else said," it might not be worth getting out of bed for".

Most repairmen do a milk route sort of thing like pickup on Monday and drop off on Friday and this saves making several trips a week .

I'm not pro or con either way, I'm just pointing out some perspectives if you want to make it work.

I have clients that own specialty stores that take orders for custom leather goods. I get these orders and make a decent profit and they do too. I work out of my shop at home and rarely have anyone in my shop. They pay a tremendous overhead and pay for advertisement, public relations etc. They get headaches. I get another glass of tea. They get tire kickers and bebacks. I get orders. They take credit cards and pay a percentage. I get a cup of coffee. My headache is meeting the delivery and I control that so its not a major deal.

Blake

[awharness]

Hi Blake, I think that 10% extremely fair. This particular tack shop is huge, two tack shops, as well as two huge lumber yards. They will do all the front end work! All I have to do is pick up, and drop off, after I fix the tack. They will run it threw their system and then just cut me a check once a week for the previous weeks work. I know I always give my buddies deals. but not this way!. They want me to make up a pricelist, that is the delemia, BUT I can use my name and web site on the flyer! They will also advertise it as a service. They send a lot of work my way, but I am out of my home as well and its easier to just have them drop it off. They are 4 miles from my house on my way into town, and I buy grain weekly reguardless! I was just wondering what would be a fair dollar amount for an hourly rate and min rate... Thanks for the input though blake!

-Andrew

Just a few thoughts here.

I have been on both sides of this issue so look at it from the stores perspective too. Who is responsible for collecting your payment from the customer? Who is responsible for writing up the work order? Who is responsible for storing the repair until it is picked up? Who is responsible for providing a place for all of this to happen? Who calls you when a repair comes in? Who calls the customer when a repair is ready?

Even the time spent taking in and writing up a repair takes up an employees time. I have never minded giving a retail store a reasonable percentage as they have given me an outlet that I would not normally have. I also found that over time especially with custom work the customer would bypass the store and contact me directly.

As far as an hourly wage you have to decide what your market will bare but I would adjust it upwards to counter whatever the percentage is that you give the store. It costs you money and time too just to make the pick ups and deliveries.

Lots of Tack stores have this service for boot repair as well as tack repair but there has to be incentive for both of you to make it work. If there is no incentive for the store then it will grow old fairly fast. A percentage also obligates them somewhat to the arrangement.

Offering this service from the stores perspective doesn't actually bring that much new business to them as much as it provides a service to their existing customer base and as we all know its important to keep that base constant and happy.

Another thought is ......... How much leather care products will you sell for the store by recommendation on the invoice when a repair is picked up? If it is a reasonable amount then you may want to re-negotiate and have them wave the percentage or increase your prices a bit more for your time spent selling their products to the customer.

Is 10% of a $50.00 repair all that much for everything that has to happen on the stores part? Is the $50.00 repair really worth all of the time and travel that you endure ? I would look at the volume potential as someone else said," it might not be worth getting out of bed for".

Most repairmen do a milk route sort of thing like pickup on Monday and drop off on Friday and this saves making several trips a week .

I'm not pro or con either way, I'm just pointing out some perspectives if you want to make it work.

I have clients that own specialty stores that take orders for custom leather goods. I get these orders and make a decent profit and they do too. I work out of my shop at home and rarely have anyone in my shop. They pay a tremendous overhead and pay for advertisement, public relations etc. They get headaches. I get another glass of tea. They get tire kickers and bebacks. I get orders. They take credit cards and pay a percentage. I get a cup of coffee. My headache is meeting the delivery and I control that so its not a major deal.

Blake

[Blake]

Hi Andrew

I have to apologize, I should have read your post a little closer.

Blake

[rickybobby]

I know this is a topic that is talked about and talked about, but I feel that this is a differnt angle on it. PRICING. I have an offer to do a pick up drop off service at a tack shop. They want to charge me 10%, so I need a set price list. I would like some input. It is a typically high end Hunter jumper dressage market. No tooling or creative work, just basic repair and fabrication. I know I have to charge 100% mark up on materials and hardware, but how much for labor?

would 12.50 min on labor + materials... which would equate to like 50 an hour plus materials? any input would be welcomed...

THanks

-Andrew

Andrew,

Others have posted what your overhead is, all true, yoou need to pay yourself as if you were a business. A good example is a craftsman, which we are, we need to collect on the hours spent learning, studying, practiceing, ect. You also need to figure growth for your business, future equipment, wearing out equipment, NEW TOOLS ! Even without the overhead of a store front you have overhead! Computer geeks, auto mechanics, auto body shops, plumbers, ect. all pay bills (overhead) also consider the times you are not working on tack, but are not doing anything else because you need to go see if they have work. You need to charge a hourly rate that will Sustain you while waiting for the next job, I don't mean make a killing on one job so you don't have to work the rest of the week just enough so you can stay dedicated to this business.

I have been in the service business and had my own body shop for 20 years. As a craftsman I have not taken my own advice on this and not gotten further ahead as fast as I would have liked to. The leather business is new for me, I have done leather work since I was 14, but I am doing this as a second career now and I am following these things other businessmen have taught me.

I think it would be impossible do do this for under $50.00 per labor hour.

* you can give a estimate for labor hours to repair, call if you find there will be more to give the customer a heads up. Also be fair if it takes you less time.

* look over the items at the time they are dropped off, note missing parts (cinch, breast collar or not, stirrup leathers, irons) customers will forget they took these off and ask you replace them at your cost. This is preventable with checking these in and noteing what is there and what is not.

* "Under promise and over deliver" I learned this in the automotive repair business. If a customers job takes 1 week and is $300.00 But you thought it would take 5 days and be $285.00 and this is what you told them, you will have a unhappy customer.

On the other hand you told them $325.00 and take 10 days when you call them in 1 week and the bill is $300.00 your a hero!

If anyone else has any ideas I would be interested. Sorry for the long post but business is important!!

Thanks, hope this is a answer that works for you!