You Don’t Have to Justify!

A few weeks ago I was teaching a class about the “business end” of a machine quilting business. In this class, along with a lot of other things, I talked about offering additional services, such as binding quilts, to your customers. In my opinion, binding quilts is not that hard to do and you can make a fair amount of $$ at binding quilts.

In my quilting business I have four different pricing levels for binding. They are –

Binding #1, $2.50 perimeter foot – Trim the quilt, make the binding (straight binding, cut selvedge to selvedge) and apply the binding to the front of the quilt using my home sewing machine. The customer is responsible for hand stitching the binding to the back of the quilt.

Binding #2, $3.00 perimeter foot – Trim the quilt, make the binding (see above) stitch the binding to the quilt, front and back, using my home sewing machine. (This binding in totally applied with the home sewing machine.)

Binding #3, $3.50 perimeter foot – Same as Binding #1 except that I hand stitch the binding to the back of the quilt.

Binding #4, individually priced – This is Custom Binding such as bias binding, piped binding or any other type of binding that is different from Bindings #1 – 3. There is no “upper limit” to the price on this type of binding.

Example – a Queen Size quilt is 90 x 108 inches (the size of a pre-cut Queen Size batting) which equals 33 perimeter feet. (90 +108 x 2 divided by 12 inches per foot = 33 perimeter feet) Of course, the number of perimeter feet would be different on different sizes of quilts.

Using the example above my prices would be –

Binding #1 – $82.50 – and it takes me about an hour to make and apply this binding
Binding #2 – $99 – it takes me about 1-1/2 hours to make and apply this binding
Binding #3 – $115.50 – it takes me at least 2-1/2 hours, probably more, to make and apply this binding.
Binding #4 – is not included in this example.

I stated that of the customers who have me apply binding, they usually chose Binding #2. And, I love the $$ I can make applying Binding #2!

Everyone in the class seem receptive to the idea of charging for binding and for the prices I was suggesting.

Note: If you are NOT offering binding services to your customers, please think about doing so!

I would also like to say that in my business, only about 15 – 20% of my customers have me put the binding on their quilts. I don’t tell my customer how much time it will take to apply the binding to their quilt – I also don’t tell my customers how much time it has taken me to complete the quilting on their quilt.

A few days ago I received an email from one of the students in that class. Among other things, she stated that, in her opinion, I was “gouging” my customers in my pricing for my binding, mainly because it takes me such a short time to apply a binding (Binding #2)!

Fair warning – I am going to rant for a little bit!

In my classes, I tell people how I run my machine quilting business. I am not saying that my way is the “best” way or the “right” way to do things – it is the way that is working for me, at this moment in time. YOU are an independent small business owner. If you feel that my prices are too high or too low, you can charge what YOU want in YOUR business! I am NOT going to come and re-possess your quilting machine, or do harm to your quilts if you don’t charge the same as what I charge!

Here is a definition of “price gouging” from www.LegalDictonary.net  https://legaldictionary.net/price-gouging/

Price Gouging – The practice of raising prices on certain types of goods and services to an unfair level, especially during a state of emergency.

Also on the same page is this –

In most states with price gouging laws, the act is defined by the presence of three criteria:

Emergency or Crisis Situation – applies to abrupt price increases during a time of disaster or other emergency
Essential Items or Services – applies exclusively to items or services that are essential to survival
Price Limit – sets a limit on the price that can be charged for essential goods or services

In my mind, “gouging” the customer is also when you are the ONLY person in an area who can do “something” and you charge a huge amount of $$ to do so.

Personally, I don’t think my charges for my binding services fall within the legal definition of price gouging. (I am not a lawyer – if you are, and I’m wrong, please let me know.)

I do feel that something should be said about experience. I have been applying binding on my own quilts and customers quilts for well over 20 years. I am efficient at applying binding and I almost have a “system” when I do so. Because I can apply the binding efficiently in a relative short period of time should I charge LESS for my binding services? I say No!

The same could be said for my quilting. Because I can quilt some patterns efficiently and in a relatively short period of time, should I charge LESS for those quilting designs? Again, I say NO!!

Here is an example in my own life – In my backyard I have a tree limb that is broken and hanging in the branches of the tree. It is about 20 – 30 feet in the air. I am afraid that someday this branch will fall and wipe out my fence and possibly hurt someone or the neighbors dog. I can’t reach the branch, my son can’t fix this, neither can the handy man I hire on occasion. I have to hire an arborist to come and get this dead branch out of my tree. I will have to pay him $$, probably a lot, to fix this for me. He has experience doing this and will probably get it done in a short amount of time. Is the price he will charge me “gouging”? Probably not. Will I pay his price, YES! Will I grumble about it, possibly. But the job will be DONE!! And I don’t have to worry about that branch anymore! (He is coming and fixing the tree on Saturday.)

If my customer is willing to pay the $$ for me to bind their quilt, it is their choice. I do a good job and the job is done well. In my opinion, it is NOT gouging!

I am now finished with my rant and I hope that you will feel free to post your comments about this.

Advertisements