Client Cost Sharing for Custom Stamps

[odekami]

Brand new forum member here, I am curious about the business etiquette when bidding a custom stamping job. I have a potential client who wants a series of leather cupholders and coasters with their logo stamped on it. The custom stamp I am looking at is about $100, and it will be a small job, I'm guessing under 50 pieces total to start, with option to restock ongoing since it is for a friend's coffee company that I also work for. The fact that I work for them, and that we are friends, gives me a unique opportunity to approach cost sharing options to start up the equipment costs. However, I don't want to rely on this relationship to do something strange or unusual in the leather business model. Does anyone ever ask to split the cost for a custom stamp up front, or is it more professional to work the cost of the stamp into the per piece price?

Thanks in advance for any insight here! I'm exited to engage with the forum, I've been an occasional lurker here for years.

[Hildebrand]

I have no experience with this particular situation but business wise I think either a minimum first order(to insure you get your stamp paid for and some profit) or a cost share for the stamp would be appropriate.  The minimum order route may get a better response because businesses are used to having to make minimum orders of items.

Todd

[chuck123wapati]

My take on this, I haven't done this type of thing, is that you should be upfront and simply tell them the cost of the stamp will be included in the price as it cant be used for anything else. That being said you cant charge them again for the cost every time they order but will keep it for them and reuse it or they can have it for someone else to use. 

[Rhale]

I would have them order and pay for the custom stamp, it’s there stamp not yours then you use it as necessary.  Also that way it won’t be your fault if it’s not exactly the imprint they want!  Just my way of doing  it, I am sure there are a lot more ideas on this.

[particle]

I agree with what the others said. You should not be expected to eat the cost of a custom stamp that's of no additional value to you. If you want to give them a break on your labor for the first batch of coasters, that's up to you. But the stamp is a hard cost and out of your control. Do you have a press? If not, you'll probably want to add a hydraulic press to your arsenal.

[blue62]

Artwork fee= cost of stamp plus shipping plus your time for ordering stamp.

[fredk]

I'll chip in. 

When I had to get a stamp made for a club it cost me £26. This, with anything I have to get especially to do a job I price into the cost of the main job, by pro-rata. In this case the club wanted 10 items - my choice of what to make. So I made them coffee cup cuffs. Pro-rata the stamp was £2.60 to be added to each cuff, but I didn't add that as I knew there would be a repeat order. I added £1.50 = £15 covered.(cos I like the club)

Year two, the club wanted 16 items made, so I made them luggage tags and key fob purses. I added £0.70 to each item. = £11.20 + the previous £15 = £26.20 = stamp paid for

Year three the club wanted 14 items. I made them small valet trays. No need to add any extra.

Year four - this year, I reckon they'll be wanting about 12 items.

If you charge $100 for the stamp right off the client may be ok with it, but if you hide its cost in the price per item its easier for them to swallow. eg $100/50 items = $2 per item. Can you add that to the price of the item?

I like to have the stamp made and keep control of it. Means that client has to come back to me (muhaaa!), they can't take the stamp away and get stuff made by a competitor.

[sinpac]

4 hours ago, chuck123wapati said:

My take on this, I haven't done this type of thing, is that you should be upfront and simply tell them the cost of the stamp will be included in the price as it cant be used for anything else. That being said you cant charge them again for the cost every time they order but will keep it for them and reuse it or they can have it for someone else to use. 

2nd that.

[blue62]

1 hour ago, fredk said:

I'll chip in. 

When I had to get a stamp made for a club it cost me £26. This, with anything I have to get especially to do a job I price into the cost of the main job, by pro-rata. In this case the club wanted 10 items - my choice of what to make. So I made them coffee cup cuffs. Pro-rata the stamp was £2.60 to be added to each cuff, but I didn't add that as I knew there would be a repeat order. I added £1.50 = £15 covered.(cos I like the club)

Year two, the club wanted 16 items made, so I made them luggage tags and key fob purses. I added £0.70 to each item. = £11.20 + the previous £15 = £26.20 = stamp paid for

Year three the club wanted 14 items. I made them small valet trays. No need to add any extra.

Year four - this year, I reckon they'll be wanting about 12 items.

If you charge $100 for the stamp right off the client may be ok with it, but if you hide its cost in the price per item its easier for them to swallow. eg $100/50 items = $2 per item. Can you add that to the price of the item?

I like to have the stamp made and keep control of it. Means that client has to come back to me (muhaaa!), they can't take the stamp away and get stuff made by a competitor.

And if management changes and they don't buy anymore items, guess who paid for the stamp.

[fredk]

20 minutes ago, blue62 said:

And if management changes and they don't buy anymore items, guess who paid for the stamp.

the client has cos you have put the price on each item

[Hasbeencowboy]

Right, wrong, or indifferent, as an ex-contractor, I would factor in the cost of the stamp and prorate it amongst the first order and say nothing to your client.  If and when they give you a second job, you can reduce your price "out of the goodness of your heart" and they will be happy

[RockyAussie]

This is how I normally go about it. Customer sends their logo design to me in high res. As this stamp to be made has to go on 1 or more products I put the outline into corel draw and make the stamp size down to suit. This often has to have some modifications and wording added as well.  I send this art work for them to agree on and request any changes they may want. All up I know that the stamp is going to cost me something like $65.00 au to be made so I round the customer cost to $100 or $120 which is a separated cost to them. They get 10 pieces or a hundred pieces is their business and I don't have to do any more factoring in. In over 25 years and many hundreds of stamps I have only ever had one customer ask me for their stamp. Most times you are left to hold stock of the leather,thread, zips, fittings and such so for them to fully cover the cost of their own logo is more than fair.

[Northmount]

Commercial outfits here require the customer to purchase the stamp and they can have it whenever they want if they go somewhere else.  I have a stamp in my drawer that was loaned to me by such a customer, and they have never asked to have it back. They wouldn't know what to do with it!

Tom

 

[blue62]

1 hour ago, fredk said:

the client has cos you have put the price on each item

Not unless it's all split on the first order, in your example your talking years, 

 

1 hour ago, RockyAussie said:

This is how I normally go about it. Customer sends their logo design to me in high res. As this stamp to be made has to go on 1 or more products I put the outline into corel draw and make the stamp size down to suit. This often has to have some modifications and wording added as well.  I send this art work for them to agree on and request any changes they may want. All up I know that the stamp is going to cost me something like $65.00 au to be made so I round the customer cost to $100 or $120 which is a separated cost to them. They get 10 pieces or a hundred pieces is their business and I don't have to do any more factoring in. In over 25 years and many hundreds of stamps I have only ever had one customer ask me for their stamp. Most times you are left to hold stock of the leather,thread, zips, fittings and such so for them to fully cover the cost of their own logo is more than fair.

I like this idea, sounds like a artwork fee to me.

[RockyAussie]

6 minutes ago, blue62 said:

I like this idea, sounds like a artwork fee to me.

Exactly. I will add that it should always be advised to ask for their artwork to be in black and white as well. Some multicoloured logo's take a lot of time to work out how to separate the sections without losing anything in the process.

[mikesc]

^^^ as a designer and someone who also had a printing works ( letterpress, litho and silkscreen )..what RockyAussie and Blue62 said..

Artwork has to be supplied "camera ready"( B/W separated etc* ) ..and blocks or stamps etc are paid for 100% by the customer ( they are not a "shared cost" ) as additional to the first order invoice which is based upon the number of pieces required..

 

Check with whoever is making your stamps as to what they require as artwork "format"..you do not want to have to buy or rent expensive software and do "conversions" ) because the customer supplies artwork in a format that the stamp-maker does not accept without them charging extra..

[chrisash]

When I started a Embroidery company in 2003 the cost of converting a company logo to digital format for the embroidery machines was £100 and upwards depending on complexity and number of stitches (nowadays i used to get them made in India at £5)

What we offered is the customer paid the cost of the conversion, but the digital format belonged to them , so that if they wanted to use another embroidery company they could request the copy back as they had paid for it

You could do the same the customer pays for the stamp and you just use it but it belongs to them