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Panel metal - Was: Hello again

2004-09-26 by Larry Hendry

--- Jay <jay@denonville.com> wrote:
> > And what about front panels? Stooge to the rescue, I guess...
>  
> If Stooge has a supply for the metal. Larry?

So far, we have only used metal purchased from Roger for the supply. 
That is because the number has been so small.  To make it feasable to
run metal parts I'd need to have at least a couple of hundred of them
made.  That has not been a problem in MOTM land.  Each time we run
panels we sell in the 250-400 panel range.

The advantage of running my own metal is cost.  What I pay Roger for
metal is considerably higher than what the cost to produce them might
be.  

However, a potential disadvantage is that I would be using a
different painter.  The paint finish might be ever so slighly
different. He matches MOTM very well.

Some people may not care about the cost difference.  But, just being
breif, that has a lot to do with how we set pricing on our MOTM line.
 We price the printing at our exact cost with no mark up.  We provide
the blanks at the "Paul sale price" into the process.  Our mark up is
the difference between metal cost and metal sale price.  Which means
on a custom screened panel Dave and I split the same mark up that
Paul gets on a blank panel.  Prices vary depending on quantity sold
since the screen material and set up cost is almost 100% of the
printing fee. I like this because it forces me to show no favortism
toward what we produce.  Our per-panel profit is the same if I make 1
or 20 of them.  I am not certain exact formula will work.  i think
the metod will.  But, Roger's metal mark up is lower than Paul's (you
can see that when you compare the price they sell blanks for.

I have no idea how Roger will respond to an order for 100 or more
panels. So, whether we buy from Roger or make our own is up to
Roger's willingness to sell and our customer's demand.

Larry

P.S.  Jay, how are you holding up through all this amazing weather in
Florida?




		
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