need advice pronto

[TinaC]

Well I just seemed to get the dog situation under controll to the point where I was finally making some money. Now just the other night I find out that a lady who was working as a long arm quilter in a local quilt shop has gone out on her own.

Normally this should not be a big deal, however she is charging .01 per square inch. I'm chargin $2.25 per square foot which compared to her if I wanted to match her I would have to charge $1.45 per square foot. She is basically $50.00 less then everyone else in my area.

I'm attending a quilt show in my area next month and I need to know what I should be charging. Do I drop my price this drastically to make sure I contain a good market share or do I stand my ground and take a chance at loosing everything I've worked so hard to build.

She has about 5 years experience with a longarm, but that's it. However anyone who has used her to this point will probably stay with her. As far as atracting new clients I don't what she's planning on doing.

My business is just that, a business. I'm doing this to make money doing something I love. Also I attended MQS this past May, I took 11 classes as well as worked in the judges room. I'm taking the NQA judging program I want to start being able to judge shows in the next couple of years. I even had my first quilt ever in a show and it was MQS, it was my own design, mind you I just used a pantograph but the point is it still hung.

My bigest challenge is turn around. I'm a little slower than most of the ladies because I'm young(33) with two children and I work nights at wal-mart to make sure I can pay my loan if I ever have a slow month. All the other ladies in my area are retired so all they have to do is quilt. I feel I'm doing a pretty good job. My turn around time is 2 weeks.

I need any and all advice to my situation that you wonderful ladies have to offer. I need to plan my marketing strategy for the upcoming quilt show.

Thank you in advance for your support.

Tina

The Quilt lady

[LynnQuilts]

Hi, Tina! You can take my "words of wisdom" with a grain of salt, since I do not longarm as a business. Others who do do this as a business may have very different thoughts on the matter. I see other people's rates, and read of hundreds of dollars charged for custom quilting a quilt. Of course, these hundreds are on top of the hundred(s) a person might have already spent making the top, plus the batting and backing. I don't know how many people can afford to spend many hundreds of dollars on a quilt. Maybe once for a very special quilt. If one can get the high prices, I suppose that is fine and good, and they don't need to worry about it maybe. But it seems to me (and I could easily be wrong ) that professional quilters are going to price themselves out of jobs by charging high rates, aiming for an hourly wage that is almost twice what I make at my job. It's your business, and only you can decide if you want to leave your rates alone and get what customers you can, or perhaps lower them to "compete." If you do want to lower them, you don't necessarily have to match hers, but just be a little lower so that there is not so glaring a difference in your prices, maybe? Just my thoughts, for what they are worth (probably nothing!!).

[jkerekes]

Tina,

I'm not an expert--I've only been in business a short while, but I've been nosing around this "industry" for a long time. This is what I have learned from seeing this issue again and again on another message board: Don't lower your prices. If you are charging an average price FOR YOUR AREA do not change your prices. If you are friendly with other long armers in your area, you might want to call them and all agree not to lower prices. If her prices are so much lower---she'll probably get all the bargain shoppers. You don't necessarily want to cater to the bargain hunters. You want quality pieces to quilt. I'm not trying to be a snob...at all. The fact is--if you do a quality job, are an honest person, keep up with your "technical" skills, etc. your quality customers will probably stay with you. The "cheaper lady" is going to get all the "cheap" customers. You may see a slight shift in your customer base. Take a deep breath and hold fast. I'm also young(34) and I have 4 small children at home and my prices match the prices of the other long-armers in the area. I'm slowly building a customer base. Maybe I would be building faster if I would underprice my "competitors", but I refuse to do that. This type of work shouldn't come "cheap." That is poor, poor business practice--in my opinion. That lady might be doing that to grab a few new customers and then she will raise her prices. So be it.

Have you ever thought of talking to her? She may be completely clueless! You may do her a favor by mentioning this issue to her.

Where do you live? A turn-around time of two weeks makes people pass out here!

Jill K

[QuilterSue]

Tina, DO NOT lower your prices to match this new LA quilter. All this will do is put you out of business by creating a downward spiral.

Many years ago when I first went into business as a secretarial service, the national organization's executive director posted a long story in his monthly newsletter. To make it short, I'll paraphrase and relate it to the LA quilting business (but this still might be long:().

Quilter A (that is you) charges $XX amount and has been in business for a while. Quilter B decides to open up across the street or across town and charges $X. Quilter A is afraid she is going to lose customers so she reduces her rates to match Quilter B. Quilter B hears that Quilter A is now charging the same amount as she and figures that since Quilter A has more experience and she is only charge $X that she better reduce her rates and now charges even less. If you both keep in this cycle, you will both be giving away your quilting or paying your customers to come to you. Eventually you both will be closing your doors because you can't be in business and give away your services.

I have been in the secretarial/word processing business since 1984. I am definitely not the least expensive in my area - actually I am probably one of the more expensive services but I still have customers and still have my business. I promote my business for (a) its longevity and ( the quality of service provided (I have been known to turn away customers who are only interested in price - I tell them I'm not the service for them and will refer them to one of the lesser expensive services that I know:o).

What you need to do is charge a fair price for the quality of service you provide. You have experience and I assume you provide quality services. Find your niche and advertise and promote yourself in this manner. Again, DO NOT lower your prices. You are not in competition with this new quilter. Yes, at first you might lose a few clients who want to try her out but if the quality of work you produce is better and if your customer service is top notch, you will be in a better position than this new service. You have expenses to cover. If you reduce your rates you won't be able to cover your expenses and make a profit. And after all, we are all in business to make a profit.

I hope I haven't offended anyone, but this is something I feel very strongly about. I have seen too many businesses go out of business over the years because they didn't charge enough or provide quality service. Do both, and you'll be one happy camper.

As Kimmy from MN says, quilting is not a "cheap" hobby. If all the customer is interested in is price, let them go. It is not your problem if they spent all their money on fabric. You need to make a living.

I also personally feel that too many quilters don't charge enough. You would be better off getting a job working for someone else - you would make more per hour, get benefits, get paid vacations, get health insurance, etc. Be sure you are making enough per hour to pay yourself a salary and all the extras. Remember as a business you have matching FICA and other expenses. There is a lot that goes into an hourly wage - be sure you cover yourself.

[Quiltdoodlesmith]

Tina,

SUE IS RIGHT. Stand by your prices. Customers know that you get what you pay for. Your style, quality, and customer service will keep you busy soon enough.

Also your turnaround time will continue to improve - even with your multi-tasking lifestyle.

If or when the quilt shop brings in another longarm quilter you can bet their prices will be the same as they were before - or higher.

[Giftedhands]

Tina: She may have set her prices based on what the shop was charging. Don't change your priciing. Say a prayer, eat some chocolate and be patient. See if the Walmart people will let you hand out information to the people who buy their materials there, or handouts on QOV or classes, and start building a rapport with the quilters...

Cynthia

[quiltaholi_518]

Hmmmm. I just started quilting for others a few months ago, and I offerred "introductory" pricing for the first 2 months. Not because I am trying to undercut anyone else, but because I am not known yet. And ironically, most of my clients did not come to me because of pricing, it was because of a faster turnaround. Your 2 weeks is GREAT!!!!

I also do something noone else does. When they pick up their quilt I give them a fridge magnet with my name and number. First time clients are getting a thank-you card, and when a client refers someone they get a certificate (printed on a business card) for $10 dollar of a future quilt. These are all things I feel give them a good value and a good feeling without giving it away.

Stick by your guns? yes, but also offer that little extra that will make people remember you, not your prices.

[April W]

Tina,

Definitely DO NOT DROP your prices. When I first started taking customer quilts I had several people from my area call to check out my prices. One lady told me that I was charging way too much...she had a man in Dadeville that would quilt any size for only $15.00. I let her know that I would not be dropping my prices and she was more than welcome to use his "services". I also work at a doctor's office 4-5 days a week and quilt as much as possible. However, I do not have the great turn around that you manage, but then I have to make some of mine from old embroidered blocks that have been passed down or design the whole quilt, I have a "full service" quilting business. I always have 3 to 6 customer quilts on hand too.

[stephaniepg]

Tina,

I agree, do not lower your prices! I have worked through my LQS for the past seven years, solo. Two years ago, a woman purchased a longarm, also working through the LQS, and many of my customers switched to her. She can do this full time, I have another full time job. She has a quicker turn around time. I felt bad, but gradually, "my" customers have come back to me, or save me for the special quilts. Her prices were originally lower, but we have agreed to the same pricing, she quilts most of them the same, I will do custom, she has five thread colors, I am like a little child and have to have every color. As mentioned before, find a niche and develop it, some will use your service, others will not, and some will use both of you.

[TinaC]

Thank you everone for you thoughts and opinions. Last night at our first quild meeting to start off our fall session I stood in line for show and share. It was a string quilt(now if I knew how to post pictues I would show it here) but with a black border and What I did was using yellow thread on front and back(the back was white) I did a panto in the center but did a custome feather with custom fill using some of Linda Taylors fill in tricks. Well I started with the back and then when I flipped it to the front basically the crowd went silent. It was just the thing that I needed to prove to myself that I'm good at what I do and my price is just fine the way it is.

Too make a long story short. I had several inquiries about what I charge and most were more than happy to book an appointment. I've also got my trade show at the end of October where people will see my work first hand and up close. I'll keep you posted on the developments of my business.

Again hugs to all of you, without this group I would have given up long ago. However, I'm not a quiter and this is what I know I want to do with the rest of my life.

PS If someone can tell me how to download photos I would love to post some of my quilts to share with you wonderful ladies.

Thanks again The Quilt lady

Tina

[diane Bevans]

I would like to add to the mix of this. I think you really have to think about your area a lot. I have 3 longarm sewers within a 20-30 min drive of me and If I charged as much as you I would be out of business. They have been in it longer and have established their customers. I have to think about competition but about pricing fairly, I am a little under them but the average is0.015 around here. The economics of our area would not support what you are charging either. But your area may be able to support the higher cost. So do a little research and find out what others around you are charging, with turnaround, and experience as you are charging. Who knows maybe not enough!

[Pam C]

Tina:

I would be interested in learning how to become a quilt judge. Would you please post information on this? I would really appreicate it.