Comments on: how to lower your prices without reducing your profits http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/ creative focused business thinking Sat, 04 Feb 2012 11:57:08 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Dawnaurora http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/#comment-490 Dawnaurora Wed, 28 Apr 2010 13:56:42 +0000 http://craftmba.com/?p=472#comment-490 Hello, thanks for this post. I love the tips. I am outsourcing some of my business aspects and I love it. It is worth the cost and reduced stress. Hello,
thanks for this post. I love the tips. I am outsourcing some of my business aspects and I love it. It is worth the cost and reduced stress.

]]> By: Janine Golbert http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/#comment-489 Janine Golbert Thu, 22 Apr 2010 16:08:57 +0000 http://craftmba.com/?p=472#comment-489 Great tips! I enjoyed tour post very much thanks! Great tips! I enjoyed tour post very much thanks!

]]> By: Penelope Bridge http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/#comment-488 Penelope Bridge Fri, 05 Mar 2010 22:28:53 +0000 http://craftmba.com/?p=472#comment-488 phew thank goodness canada hasn't caught up to the US precedent vis a vis contractor/indemnity! we are still operating basically as Ariel has described. i think that it makes sense to understand the relationship from the contractor's perspective as well - you are always on the lookout for the next contract and time is money for them too! phew thank goodness canada hasn’t caught up to the US precedent vis a vis contractor/indemnity! we are still operating basically as Ariel has described. i think that it makes sense to understand the relationship from the contractor’s perspective as well – you are always on the lookout for the next contract and time is money for them too!

]]> By: Melinda O'Keefe http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/#comment-487 Melinda O'Keefe Fri, 05 Mar 2010 00:08:31 +0000 http://craftmba.com/?p=472#comment-487 I run a small manufacturing studio, handcrafting and assembling jewelry. I'm walking that tightrope now, hiring people to help make jewelry for wholesale and retail orders. 2009 was the first real big year I had and issued three Misc 1099 to freelancers for the first time. I've been told that I won't be able to do this much longer so I've had people work out of their own studios and pricing things out as piece work, as that's what it is. I'm so afraid that if push comes to shove, I cannot fathom paying out disability, worker's compensation, social security, FICA, ect. The paperwork! All I need is another form to fill out and keep track of. Ugh. I'm not that big of an enterprise. It would kill the bottom line as I couldn't imagine passing on these costs to the customer for what I do to cover these expenses. I'm sweating it out now, hoping for the best. How do small businesses survive this? I want to make sure to dot all my i's and cross all my t's. I want to help my community by offering jobs to local people. I don't want to make any mistakes. I want to keep this handcrafted jewelry assembly in the USA. I report all my income to the Uncle Sam and pay the taxes that go with it. Can't my freelancers do the same if I'm reporting their income to the government? Melinda Melindesign.com I run a small manufacturing studio, handcrafting and assembling jewelry. I’m walking that tightrope now, hiring people to help make jewelry for wholesale and retail orders. 2009 was the first real big year I had and issued three Misc 1099 to freelancers for the first time. I’ve been told that I won’t be able to do this much longer so I’ve had people work out of their own studios and pricing things out as piece work, as that’s what it is. I’m so afraid that if push comes to shove, I cannot fathom paying out disability, worker’s compensation, social security, FICA, ect. The paperwork! All I need is another form to fill out and keep track of. Ugh. I’m not that big of an enterprise. It would kill the bottom line as I couldn’t imagine passing on these costs to the customer for what I do to cover these expenses. I’m sweating it out now, hoping for the best. How do small businesses survive this? I want to make sure to dot all my i’s and cross all my t’s. I want to help my community by offering jobs to local people. I don’t want to make any mistakes. I want to keep this handcrafted jewelry assembly in the USA. I report all my income to the Uncle Sam and pay the taxes that go with it. Can’t my freelancers do the same if I’m reporting their income to the government?

Melinda
Melindesign.com

]]> By: Kathleen http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/#comment-486 Kathleen Thu, 04 Mar 2010 17:36:00 +0000 http://craftmba.com/?p=472#comment-486 Ariel, that is pretty close to the nutshell version. Or rather, I should say was. :::Unfortunately::: now a demonstrable chilling effect has arisen. As word becomes known of a recent federal circuit decision, contractors are going to be more reluctant than ever to take someone's work. Briefly, the US Federal Circuit Court of Appeals has decided contractors cannot be indemnified for various forms of infringement. The short version: no indemnity for contractors regardless of due diligence! This is sheer insanity. It strikes me as a subterfuge strategy to legitimize the defunct (for all intents and purposes) DPPA. Meaning, contractors are now going to be required to hire intellectual property attorneys to scrutinize the product concept of every customer who comes in the door if they don't want to be sued later by a third party. Do you have any idea how much this is going to cost? Tons of money and who will pay but the customer? If this decision stands, it can only mean the end of manufacturing in the US meaning yet more people will become unemployed. Surely the court could have exercised a bit more foresight regarding the devastating and unintended consequences in this troubled economy. If it's difficult to find contractors now, much less at an affordable price, it will only get worse. Far worse. Ariel, that is pretty close to the nutshell version. Or rather, I should say was.

:::Unfortunately::: now a demonstrable chilling effect has arisen. As word becomes known of a recent federal circuit decision, contractors are going to be more reluctant than ever to take someone’s work.

Briefly, the US Federal Circuit Court of Appeals has decided contractors cannot be indemnified for various forms of infringement. The short version: no indemnity for contractors regardless of due diligence!

This is sheer insanity. It strikes me as a subterfuge strategy to legitimize the defunct (for all intents and purposes) DPPA. Meaning, contractors are now going to be required to hire intellectual property attorneys to scrutinize the product concept of every customer who comes in the door if they don’t want to be sued later by a third party. Do you have any idea how much this is going to cost? Tons of money and who will pay but the customer?

If this decision stands, it can only mean the end of manufacturing in the US meaning yet more people will become unemployed. Surely the court could have exercised a bit more foresight regarding the devastating and unintended consequences in this troubled economy. If it’s difficult to find contractors now, much less at an affordable price, it will only get worse. Far worse.

]]> By: Ariel http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/#comment-485 Ariel Thu, 04 Mar 2010 00:44:24 +0000 http://craftmba.com/?p=472#comment-485 As I understood it, in essence, an independent contractor is bound only by contract for a project to, in this case, make X number of Y objects for Z amount of dollars in T number of days. In return you grant that independent contractor an indemnity against copyright/design/trademark infringements and an understanding that they do not replicate your designs in any other way/venues without your written express permission. That contractor is responsible for their own taxes, insurance.. etc and they can take on any number of projects they like unless something is worded into the agreement. Feel free to correct me if I'm wrong. As I understood it, in essence, an independent contractor is bound only by contract for a project to, in this case, make X number of Y objects for Z amount of dollars in T number of days. In return you grant that independent contractor an indemnity against copyright/design/trademark infringements and an understanding that they do not replicate your designs in any other way/venues without your written express permission. That contractor is responsible for their own taxes, insurance.. etc and they can take on any number of projects they like unless something is worded into the agreement.

Feel free to correct me if I’m wrong.

]]> By: Colleen (bcharmer) http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/#comment-484 Colleen (bcharmer) Wed, 03 Mar 2010 23:20:00 +0000 http://craftmba.com/?p=472#comment-484 GREAT post! With regards to buying groups, there are MANY purchasing co-ops on Yahoo Groups. I belong to several and have only had one dud. It's a fabulous resource if you're smart about it! GREAT post! With regards to buying groups, there are MANY purchasing co-ops on Yahoo Groups. I belong to several and have only had one dud. It’s a fabulous resource if you’re smart about it!

]]> By: Veelana http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/#comment-483 Veelana Wed, 03 Mar 2010 22:55:12 +0000 http://craftmba.com/?p=472#comment-483 Thank you for this insight! Since I work at home and my materials cost next to nothing (for my paper stars, at least), I really need to cut the time I take per star - or pay myself less, wich I'm not willing to do. I'll do some assembly line style crafting tomorrow and see how it goes :-) Hugs from Vienna Vee Thank you for this insight! Since I work at home and my materials cost next to nothing (for my paper stars, at least), I really need to cut the time I take per star – or pay myself less, wich I’m not willing to do. I’ll do some assembly line style crafting tomorrow and see how it goes :-)

Hugs from Vienna
Vee

]]> By: Anna http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/#comment-482 Anna Wed, 03 Mar 2010 21:24:41 +0000 http://craftmba.com/?p=472#comment-482 Another point I learned the hard way about buying from craft stores: not only can it be more expensive, but it can also leave buyers second guessing your handiwork. Even though I make jewelry, if I see a necklace I like I might still buy it. However, its an automatic turn off when I look at a listing and can tell what craft store they got it from. Its also very depressing when I would price items...only to find the charm I was using was used on four or five other pieces within the same price range. I think wholesale or bulk lots have a tendency to have more unique items. Has anyone else experienced this, or perhaps the other way around? (where pieces found in bulk are more common then items bought individually from craft stores) Another point I learned the hard way about buying from craft stores: not only can it be more expensive, but it can also leave buyers second guessing your handiwork. Even though I make jewelry, if I see a necklace I like I might still buy it. However, its an automatic turn off when I look at a listing and can tell what craft store they got it from. Its also very depressing when I would price items…only to find the charm I was using was used on four or five other pieces within the same price range. I think wholesale or bulk lots have a tendency to have more unique items. Has anyone else experienced this, or perhaps the other way around? (where pieces found in bulk are more common then items bought individually from craft stores)

]]> By: Daniellexo http://designinganmba.com/2010/03/03/how-to-lower-your-prices-without-reducing-your-profits/#comment-481 Daniellexo Wed, 03 Mar 2010 18:42:36 +0000 http://craftmba.com/?p=472#comment-481 #2 has so much potential! Any tips on starting or joining a buying co-op?? #2 has so much potential! Any tips on starting or joining a buying co-op??

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