How to Price Products & Packages
The order forms have six packages. We have a package A, which is right here. 'kay? Package A is an 8 x 10 composite, that has, oh, here, I can go to the next slide for ya, it's an 8 x 10 composite, with the team and individual. It'll have the association name on it, and the year, what it is, that's our package A. It's an 8 x 10 and one of these cardboard things, these cost me 60 cents, these cost me 40. And we include two wallets. Our machine allows us to print in house, we print two wallets, because, 10 years ago my dad used to give away magnets in the package, and you'd have to print one of these, and throw the other one away, and I got sick of making magnets for free, so we dropped out magnets, and we included two wallets. My cost of goods went down, 'cause I wasn't paying for the magnet, and we just gave them the two wallets that were comin' off. We got a little bit off push back on that, but the standard response was, "Oh, with stainless steel appliances, some parents can't use ma...
gnets, so we find it better that everyone get wallets. We understand your concerns, but we evolve our packages to meet the needs of the majority of our clients, and I'm so sorry that we couldn't meet your needs specifically, but we are taking the feedback into consideration, and we'll let you know what we can do in the future. But we aren't putting in magnets for free. (laughter) Thank you so much, have a nice day. You can buy a magnet. This whole thing together, it's like a buck 80. That's what it costs me. Okay? Nine percent cost of goods. Ninety percent margin. We have a package B. Package B is essentially the same exact thing, it's the same print, but we put it in an acrylic frame. We use this acrylic frame in another product later on, but it's this acrylic frame, I get it from Neil Enterprises. It's like a buck 80 for this frame, if you buy 'em one at a time, if you buy 'em in the minimum quantities, I buy a lot, I pay a buck a frame. I got a whole lot of 'em. If you guys need to borrow a frame, let me know. (laughter) So this package, same exact product, same thing, just presented in an acrylic frame, they pay four bucks more, I make an extra three. My cost of goods go up a little bit, 2.15, but we're still maintaining that 90% margin. Package C. Some people don't like the composites. This is our package C. This is just a 5 x 7, 4 x 5 acrylic frame. I get these from this acrylic company in South Dakota, I think it's Enterprise somethin'. I don't know, they make these for me. I can't find this product anywhere. They just make these for me. We called an acrylic shop, and said this is what I want, and we buy, like a 1,000 at a time, 2,000 at a time. And so, it's a product that's been in our line up for a lot of years. I'm surprised that you can't just buy a frame like this, I can't find it anywhere, not at an affordable price. So we just order them in. Cost of goods on this, is 2.88. It costs me 2.88 to make this and deliver it. The only thing that was driving me nuts on this product, was, we, for the longest time, could not figure out how to box it correctly. So we'd always have big clunky boxes, and it was super annoying, and so I called Uline, they sent a guy out, and they got a box for me, so now my life is much better. Package A, that first one that we went over, I'm gonna be honest with you guys, that's like, 80 to 90 % of what we sell. Always, that's what we sell. We have a bunch of options, but that's our main one. We have some other cool stuff. We have a package D. 'Kay? That is this one. This is an 8 x 10 composite, we flip it horizontally, and then we have the team, and individual, but the difference with this one, is this is when you get into customizing it with your name. Now, a lot of the labs will add names and stuff to orders for free, it's not even service that they're gonna charge you for, we do not do that for free because I find that, I'll mess up, and do a typo on it, and then I have to redo it. And when I'm doin' a 1,000 orders, the chance of me not flippin' two letters, or not missing something, or you'll have the dad write his name down on the order form, instead of the kid's name. So even though you spell it right, it's the wrong name. That leads to more client dissatisfaction, so we don't do it at 20 bucks. We don't do it. You get it when you go up to 38. And so, that is a very intentional and deliberate thing, but again, you have the 8 x 10, and the two wallets, the frames still cost the same. My cost of goods on this is only six percent. So, we make a lot more on this one. But, we take the time, it's a little bit longer in production, because we have to make sure we type the name in right, we have to go to a different border, and all that stuff. Okay? The package E. This thing, it's one of those products that I can't believe is gonna be popular forever, and every year, we keep getting requests for them. And so, we sell 'em! We get these from JDS, is the name of the company, that's where we get the plaques, that's where we get the plastic figurines. Literally, we take a 5 x 7, a 4 x 5, we slap a sticker on the back of them, we roll 'em through a mat roller, we mount this little plaque on, the little figurine on it, it's out the door. Cost me 3.54. 'Kay? Sell it for $39.00. Which is what? 91 % margin. Seeing a theme? And a package F, which is the same basic product as this, but instead of on the frame, it's on a plaque.