Not sure how much of a secret or how unique this is to this industry but in sign writing, they’ll charge customers bloated prices that includes the cost of all materials, then use offcut and leftover materials from previous jobs anyway.
This makes sense in 2 ways:
If they didn’t have the offcuts, they would have to buy the materials anyway. So accounting for that cost is required.
If they didn’t use the offcuts, they would have to bin/recycle them. This is a good reduce/reuse policy.
It’s similar with event kit hire companies. They might have 2 of one item on the book, and know they can subhire a further 2 items from a different company.
If you request to hire 2 of the items, it will likely be at the cost of what the other company charges (well, b2b rate at least) plus a margin (to cover delivery, processing, insurance).
Because the company you go to may or may not have 2 items on the shelf. They might only have 1 or none. And they can’t suck up the cost of subhiring.
If they hire out the items on the shelf, great. Probably a bit more profit.
If they have to subhire, no big deal. Just slimmer margins
Not sure how much of a secret or how unique this is to this industry but in sign writing, they’ll charge customers bloated prices that includes the cost of all materials, then use offcut and leftover materials from previous jobs anyway.
This makes sense in 2 ways:
If they didn’t have the offcuts, they would have to buy the materials anyway. So accounting for that cost is required.
If they didn’t use the offcuts, they would have to bin/recycle them. This is a good reduce/reuse policy.
It’s similar with event kit hire companies. They might have 2 of one item on the book, and know they can subhire a further 2 items from a different company.
If you request to hire 2 of the items, it will likely be at the cost of what the other company charges (well, b2b rate at least) plus a margin (to cover delivery, processing, insurance).
Because the company you go to may or may not have 2 items on the shelf. They might only have 1 or none. And they can’t suck up the cost of subhiring.
If they hire out the items on the shelf, great. Probably a bit more profit.
If they have to subhire, no big deal. Just slimmer margins