New guy question

coach26 · January 29th, 2008, 08:19 AM

I have a home embroidery business, mostly sports related. I have a friend who does screenprinting that I want to use for my customers scrrenprinting needs. How is this outsourced. I would not just send them to his shop, or would I? Do I take the order and forward to him and what is the industry standard for my compensation? Thanks for your assistance.

Robert Young · January 29th, 2008, 11:22 AM

Learn your friend's pricing, abilities, and lead times......at least weekly make sure you are current with this information... mark those prices up to whatever margin you want to make and add as much cushion to his lead time as your client is willing to take (just so you are sure you can meet the finished dates you have promised).... when you sell something you then take it to your friend's shop.. you are his client .. his pricing has already built into it his margin...
Just make sure this is a friend you can trust... use more than one screenprinter to help hedge your bets if something happens and you need to break off one relationship or the other... always have at least 2 in your plan. Friendships are fine until money is involved, and the more money the easier it can be to break the friendship, sorry this sounds so cynical.

jr_sanford · February 27th, 2008, 01:24 PM

He may be a friend, BUT, business is business! Mr. Young gave great advice. Make sure you also know the "turn around time" and add 10% more time to that. How about having him get you to do some work for him as trade?

J.R. Sanford
Production Manager
NW Awards
185 NW Chehalis AV
Chehalis, WA 98532
(shop) 360-748-7346
(cell) 360-880-6384
[email address]