[Jewelry making - Article 00152] - [Orchid] Ethics and Profit?

[Beth Rosengard]

========[ Invite a Friend - http://www.ganoksin.com/invite.htm  ]========

Hi Neil,

>     What do you do? Hold to your quotation and keep the higher yield?
>     Reduce your retail to reflect your usual markup and pass the
>     savings on to the client? Somewhere in the middle? And why? 

    Interesting question. What I would do is pass some percentage of the
    savings on to the client. The percentage would depend on the amounts
    involved (and perhaps whether or not I had correctly estimated the
    labor costs for the item). The reasons are these... 

    I would not pass on 100% of the savings because there are other
    times when I underestimate on quotes and this would help compensate. 

    And the reason I would pass on any percentage at all to the customer
    is that this action which would be totally unexpected could have
    nothing but a positive effect and possibly gain you a customer for
    life. I can envision the customer saying to her friend: "Do you
    believe that he quoted me $1000 but only charged $950?! He said that
    his costs were less than expected. Now that's the kind of guy I want
    to do business with!" 

    I see this less as an ethical question and more of a good business
    decision again depending on the amounts involved and the particular
    situation. 

Beth

 
____________________________________________________________________
T h e   O r c h i d   L i s t
Open Electronic Forum for Jewelry Manufacturing Methods and Procedures
____________________________________________________________________
Orchid FAQ:
~ http://www.ganoksin.com/orchid/faq.htm
Orchid Archives:
~ http://www.ganoksin.com/orchid/archive
Orchid Galleries:
~ http://www.ganoksin.com/orchid/gallery.htm
Invite a Friend:
~ http://www.ganoksin.com/invite.htm
____________________________________________________________________
Tips From The Jeweler's Bench - Article Archive
~ http://www.ganoksin.com/borisat/tip_sear.htm
The Jeweler's Selected Bibliography List
~ http://www.ganoksin.com/jewelry-books
Buy Orchid Jewelry:
~ http://www.ganoksin.com/shop
____________________________________________________________________
-Unsubscribe:
-Email: orchid-request AT ganoksin.com Body=unsubscribe subject=blank
____________________________________________________________________