Charging for new product samples

[Bogwot]

Hi all, I am working with a clothing manufacturer for a small range of leather products, he is wanting samples which he will need to pay for, my question is how do I change for the samples. I will need to purchase the materials etc, a full shoulder for example, but I will only use, a small amount for the goods. 

Any assistance would be much appreciated 

Kind regards 

Richard 

[Rahere]

You're setting a guide price for the finished product, remember. Is the market there to pile 'em high, sell'em cheap, or are you able to go for premium pricing? Or in between?

[chrisash]

In your position I would just supply samples free of charge or just a token value, expecting the next order to be substantial and having all the profit, but that does to some extent depend on the size of the samples. bvut a small part of a shoulder does suggest small items

[mike02130]

The leather supply house ought to provide samples for free or a low price.  Two dealers I use will provide off cut samples free with my orders and another one charges a dollar for a 2"x3" clicker cut sample.  But those are EU and USA suppliers.  

edit, 

Are you asking about leather samples or product samples?

Edited July 19, 2021 by mike02130
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[chuck123wapati]

5 hours ago, Bogwot said:

Hi all, I am working with a clothing manufacturer for a small range of leather products, he is wanting samples which he will need to pay for, my question is how do I change for the samples. I will need to purchase the materials etc, a full shoulder for example, but I will only use, a small amount for the goods. 

Any assistance would be much appreciated 

Kind regards 

Richard 

dont charge for the sample it will make you look good and you can make up that little cost many times over 

[fredk]

I'm contrary, due to past experience of getting ripped off.

Charge a normal 'whole-sale' price for the samples. ie the price you are going to sell them to the client for. 

Also make sure your maker's mark  is on each item. Even with a written contract of supply and even if you think you can trust that client they may take your items to someone else to copy and get them at a reduced price even with reduced quality.

Been there, got the tee shirt etc.

[Bogwot]

Thanks all for the comments, the samples would be three belts and matching accessories, so utility style belts for over the clothing with pouches and other accessories, so prototype samples to test prior to the initial order, fredk I tend to to think the same as you. Thanks again for your comments they're appreciated 

[Tugadude]

To me it would depend on the specific customer or opportunity.  I don't know about charging a prospective customer, but one thing you could do is ask that the samples be returned.  I'm not sure what they will be doing to them, but it is likely they might just open the package, look at them, buckle them and put them back.  Who knows?  Regarding your situation, if they want three colors, how about just sending one belt with accessories and two sample pieces of the other leather?  They should be able to envision the products in the other choices I would think.

Also, as was suggested above, some leather manufacturers and/or distributors will provide free samples, but probably not enough to get several belts out of.  For that you might try Springfield Leather Co., which sells some of their leathers by the foot.  At least you might get away without buying a whole side.

I'm a hobbyist, but I'm also in sales, have been for over 30 years.  The old adage about people not appreciating things that are given free is pretty accurate.  There was a manufacturer that charged for contractor training.  Their competitors all bragged about the fact that they offered free training.  Funny, but the company that charged was always booked.  I guess folks felt they were going to get their money's worth.  Something to think about.  

[Rahere]

I was trained as a buyer by a major engineering company in the 1970s, at the start of the digital age. We knew what we authorised would take a lot of beating, but lacked the resources to do the intensive usage testing a manufacturer should do. So our criteria was tougher: Friday afternoons was football time. If it could be destroyed, we'd destroy it. The issue was how long it survived: if it shattered at the first glance, then no. But if it was robust enough to survive unreasonable abuse (ie the worst Murphy's Law might dish out less deliberately) then perhaps.

That might apply to anything - so don't expect to get it back pristine. It might be they don't want to see how it survives being dragged through a flood. You never know.]

[fredk]

If I may, I'll add some more.

Not leatherwork but when I had a wooden toy making company.

I was once asked about producing a number of wooden toys for a shop that was going to specialise in being sort of 'Victorian'.

We, being me and the shop owner, decided on which toys and worked out a per unit price based on dozens being made. As for 'samples' I charged much in excess of the unit price. I had to charge for; design, hand construction of each sample toy, buying in the safety info sheets for dyes and paints, fees for the testing to destruction of the toy for it to pass regulations as well as the cost of materials and a cost for time spent on it all, which included travelling to meetings, to the timber yard etc and fuel costs & parking fees et al. afair this total came to around £35 to £40 per toy against a unit price which varied, wholesale, from £1.50 to £3

As it turned out that shop never materialised but I did not loose any money on it because the 'sample' prices had all been paid. All R&D costs covered.

In other words, I'm trying to say; make sure you are not out of pocket on the deal. Even though you'll only use 1/4 of that shoulder, unless you can immediately allocate the other 3/4 to another on-going project the whole price of the 'samples' needs to cover the total cost of that shoulder. Plus costs for any time you need to spend designing the pouch or hangers as well as making them

On those wooden toys I had to buy in excess of certain hard-woods for them but that was covered in my charge

I've found what Tugadude said to be very true;

"The old adage about people not appreciating things that are given free is pretty accurate "

You don't need to explain anything to the client about your prices. Just tell them that if they want quality items they'll have to pay R&D for them but after that the unit price will be lower

[Bogwot]

Guys, as always some first rate points made well, thanks for taking the time to respond, l will update you on the progress as and when, thanks again Richard 

[Klara]

I'm with @fredk on this one. There is no guarantee that the samples will lead to further business, make sure you won't regret making them.

However, if you feel bad about charging them for the whole side, you could maybe treat the sample price (or part of it) as "down-payment" which will be deducted from further orders. That would amount to free samples, but only if they place the order. Or only  if they place an order above a certain amount, or... You can get creative, as long as you adhere to what is considered good business practice where you live.

@mike02130 Who is your EU supplier?  I've yet to find one I'm completely happy with...