I'm going on record right now and say "I think every drapery workroom should have a written price list." And not just any old list, but a clear concise and complete list that reflects your buisness practices and costs.

I know many workrooms like to fly by the seat of their pants when it comes to pricing. One of the many arguments I've heard, is that we are making custom products so everything has to be priced out differently. I've also heard that some cusomters require more work than others so the charges will be different.

I don't disagree that making up a price list is probably one of the hardest things any drapery workroom has to do. It's difficult to determine how to price and even more difficult to make sure your prices reflect the amount of work you do. But, I don't feel that difficulty is an excuse for not having a price list.

And my number one argument for creating a price list is this:

How do you know you are making any money if you don't know what you are charging.

If you are randomly making up a price, copying prices from a large commercial workroom, or if you "Have the general outline of your prices in your head." There is no way those prices can possibly reflect the overhead and costs of your drapery workroom. And if your prices don't reflect your costs (weights, thread, needles, lining, buckram etc.) then there is no way to know if you are really making money.

A price list isn't a random collection of numbers it is a starting point for actually making money doing what you love. The price list should cover the bulk of things you make, including panels, different types of valances, shades, cushions, pillows and bedding etc. Obviously a price list can't cover every single thing we make, we are too customized, but it is an excellent starting point. If, for example, your customer wants euro pleat panels with banding on the leading edge and trim in between the two fabrics, you can refer to your price list and easily write them up an estimate. The estimate will include your price list's price for euro pleat panels, the cost of banding per foot, and the cost of trim per foot. You most likely won't have this listed in the price book as one single treatment, but you can find the information under the heading of panels and panel add-ons.

My second argument for creating a price list is:

How can you evaluate your prices and adjust them to cover your changing costs if you don't know what they are?

The cost of doing business increases every year. Drapery pins cost more, shipping prices are higher, thread and pins are more expensive. If you have no idea what you are charging on a regular basis there is no way to adjust your prices to reflect the increasing cost of doing business. When you have a set price list you can look at the cost of a panel and easily determine in the materials and time going into making them has stayed up-to-date. As a matter of fact, I would recommend looking at your prices every 6 months, to a year, and see if they continue to be relevant and if they need to be increased.

The third argument is:

You are more likely to charge your customers LESS if you don't have a price list to fall back on.

How many times have you written a quote and thought, "Hmmm this seems a little high," and adjusted it down. How many times have you had a customer hesitate over your estimate and you've lowered the price to make the sale.

If you have a price list to back you up, you'll know that you put a lot of time and energy into creating those prices and that is your very bottom price for making money. You are far less likely to low-ball yourself if the prices are already written out in black and white and they are well thought out, and fair. You can more easily tell your customer with confidence that you cannot change your labor price, but maybe we could adjust the design a little.


The fourth argument is for the workroom doing wholesale work:

Would you carry a line of fabric books or drapery hardware if you had to call the company every time you needed a price?

The same goes for designers/decorators and your workroom prices. If a designer has to try and reach you every time they need a price and then the price is different for a panel from one job to the next, they are more likely to go visit your competitors. After all would you sell fabric from a company that refused to give you a price book, made you call everytime you needed a price and then randomly changed the price because they deemed you a difficult customer?

Now, I am NOT advocating, not to give your designer a written estimate for the entire job (and a signed contract) before beginning work. What I am saying, is that your designers need a jumping off point for figuring pricing and a written price list can help them do that. Some designers like to make the sale on-site. They can't be expected to call you and hope you are in your workroom while they are in the customers home. Others want to turn their customer estimates around in a day. They should have something to work from.


My final argument for creating a price list is:

People talk.

It's that simple. Designers and homeowners talk. At some point someone is going to compare the price of their pinch pleat panels and they are going to realize that their is a discrepency between them. How upset would you be if you discovered the cable company charged you twice as much as your neighbor to install your cable? If you don't have a set price list you are going to end up making different charges for different customers and at some point someone is going to notice.

I know everyone is very busy. Your business pulls you in a hundred different directions, but if you have not yet created a price list you need to do it NOW. After all you are running a business and the core of that business is a making money. And what is a price list, but a way to charge so you can make that money.
If you need help getting started with a price list here's a link to a couple price list articles and a price list template.