Why are there so many framing shops?

by on August 21, 2005 at 8:39 pm in Economics | Permalink

Bryan Caplan poses the question.  My answers:

1. This is a U.S. phenomenon, driven in part by framed photos of family members and regular turnover of decoration in one’s house.

2. The real value is often advice on which frame to buy.  This requires a reliable expert on hand and keeps framing shops small and artisanal in nature.

3. Frame shops lure people in to view and buy other overpriced items, such as pre-framed posters.  You need a separate shop for each variety of garish bad taste out there.

My puzzle is different: why is framing so expensive?  The frames are just finished wood, which you could import or buy cheap at a lumber yard.  The framing labor is often immigrants.  Yet a good framing job can cost more than a refrigerator or washer/dryer set. 

1 T J Olson August 21, 2005 at 10:47 pm

I concur with your question, Bryan: why are they so expensive?

Perhaps unlike most household accoutrements, both wife and husband can take a close interest in these aesthetic trophys?

But I’m enough of a woodworker to disagree and want to DIY (bringing down costs of framing) – and thus the mystery continues.

2 Steven Schreiber August 21, 2005 at 11:09 pm

Possibly it has to do with rent? A store that must produce frames will need a workshop and supplies on hand, especially if they need to be able to deliver the finished product in the next day or so. Custom framing is probably fairly rare, I’d suspect Wal-Mart has brisk sales of frames that fit a variety of common sizes but might not acheive a certain matting effect or the consumer may desire a much less common design. The custom frame shop then must keep a variety of framing materials (wood, glass, mats, etc) on hand, plus their pre-made frames, pre-framed posters, and the workshop to do the custom framing in. All of that eats space and I suspect much of the cost of custom framing is rent for all that space. I also suspect that framing stores tend to be located in areas with higher rents in order to be near where fairly wealthy customers will shop.

3 Mitch Berkson August 21, 2005 at 11:12 pm

Doesn’t your (Tyler’s) second conjecture solve the puzzle? Advice from an expert is expensive.

The canonical engineering story:
(source: http://en.wikipedia.org/wiki/Charles_Proteus_Steinmetz)

An interesting anecdote, as told by Charles M. Vest (President of the Massachusetts Institute of Technology) during commencement on June 4th, 1999, recounts Steinmetz’s mastery of electromagnetic phenomena and his engineering skills:

In the early years of this century, Steinmetz was brought to General Electric’s facilities in Schenectady, New York. GE had encountered a performance problem with one of their huge electrical generators and had been absolutely unable to correct it. Steinmetz, a genius in his understanding of electromagnetic phenomena, was brought in as a consultant — not a very common occurrence in those days, as it would be now.

Steinmetz also found the problem difficult to diagnose, but for some days he closeted himself with the generator, its engineering drawings, paper and pencil. At the end of this period, he emerged, confident that he knew how to correct the problem.

After he departed, GE’s engineers found a large “X” marked with chalk on the side of the generator casing. There also was a note instructing them to cut the casing open at that location and remove so many turns of wire from the stator. The generator would then function properly.

And indeed it did.

Steinmetz was asked what his fee would be. Having no idea in the world what was appropriate, he replied with the absolutely unheard of answer that his fee was $1000.

Stunned, the GE bureaucracy then required him to submit a formally itemized invoice.

They soon received it. It included two items:

1. Marking chalk “X” on side of generator: $1.
2. Knowing where to mark chalk “X”: $999.

4 Jody August 22, 2005 at 2:03 am

Why is framing expensive? The same reason class rings cost so much.

With absolutely no data to back this up, I suspect that a healthy proportion of the framing business is driven by the framing of diplomas. The framing of an undergraduate diploma is a frequent gift from parent to child.

If the frame is picked by and purchased by the parent, then the uniqueness of the situation, pride of the parent, and the gift giving phenomenon all tend to make the parent more willing to pay higher prices as a signal of how much they appreciate their child graduating. (Plus the parent may have also just realized that a significant drain on their household income has just been eliminated).

If the frame is picked by the child and purchased, then the actual purchaser is separated from the person who chooses the item and that always leads to price inflation.

Then under both scenarios, a diploma is the commemorating token of a massive investment – tens of thousands of dollars and four years of time. Just as you wouldn’t buy 30 dollar tires for your Porsche, you’re not going to denigrate your already heavily invested diploma and your education with a $5 frame. If nothing else, price is generally interpreted as a signal of quality.

I believe this last explanation (high priced accessory to go along with high priced good) also explains the high cost of frames used for art (which I guess is the second most common use of frames).

So rather than answering this question in terms of how much it costs to make a frame, just note how much it people are willing to pay for a high quality frame to frame their high quality diploma/picture.

The huge discrepancy in terms of how much people are willing to pay and how little it costs to make a frame also explains the large number of frame stores (high potential profit => large number of suppliers).

5 Ronald August 22, 2005 at 6:29 am

I should have also mentioned that I think the large number of framing shops are probably a result of people chasing the highly profitable work of framing pictures, while being unable to lower their prices for fear that they would be looked down upon by the rich cliental they cater to.

6 Tim Harford August 22, 2005 at 8:47 am

We may not be in equilibrium. My cousin runs a frame shop and is under pressure because the superstores are starting to offer mail-order framing. (They send the job away to a centralised facility.) Perhaps the local frame-shops will soon be a thing of the past.

Why is framing expensive? The capital costs are large – a laminating press, for instance, will cost tens of thousands of dollars. The woodworking gear is cheaper but needs to be well away from the laminate (sawdust) with extractor fans. And so on.

7 Peter August 22, 2005 at 10:49 am

Hmm. When it came time to frame my diplomas and certificates (for what most folks call an “ego wall”), I got a bunch of identical frames from Target for about $5-10 each. For me, similar appearance was more important (not that the certs/diplomas looked alike) than coughing up $100 or so per cert/diploma/photo for a fancy frame.

My co-workers take outdoor panarama pictures that they end up stitching together (usually in photoshop), so those *have* to be taken to a frame shop. One extreme example in the office is 7 feet wide by 1 foot high.

Disclaimer: I am a different Peter than the above one.

8 Kevin August 22, 2005 at 2:53 pm

“why is framing so expensive?”

-Other respondents have claimed believably that there are high capital costs of running a framing store
-I can imagine that there are low marginal costs for framing, however
-The things that people want to custom frame are typically things for which they’re willing to spend a lot to get exactly what they want
-It’s a pain to transport pictures and there’s also the risk that your valuable picture will damaged in transit
-You don’t want to entrust your valuable picture to just anyone
-It’s difficult to compare costs between framing stores
-It’s difficult to convincingly advertise low prices
-It’s very difficult to convincingly advertise high quality

I think all of these factors lead to the current situation of lots of framing stores that charge a lot but are probably not particularly profitable.

A potentially good idea for a business would be to start a company that serviced framing stores by letting the stores take the order, picking up the items to be framed, and then framing them at a central location. Ideally, one would be able to provide framing services for a much larger geographic area than individual stores can now, and use the expensive framing equipment more efficiently. Improvements in inventory should also be possible.

-Kevin

9 tylerh August 22, 2005 at 3:23 pm

Simple answer: expertise.

The increase in personal utility for certain personal objects can be so high that the high cost of the frame-bundled-with-expertise is rational. The “cheaper” frames (eg walmart) may be made from identical materials to the identical quality standards but come without that expertise. The large number of “tacky art” expertise suggests some sort of “sweet spot” between high enough margin to support the necessary “expert” per stoe but low enough prices to sustain large enough volume.

Examples: My family buys frames from cheap mass-retailers( target/walmart), commodity “frame shops” selling imported frames and tacky artwork, and high-end custom framers. The $3 walmart frame is fine for the snapshot of my kids at the breakfast table, but not for the 11 x 14 baby portraits that hold pride of place on the bedroom wall. My wife insisted that the baby portrait frames match the decor, so she spent a day at the tacky-art frame shop sorting through hundreds of pre-made frames imported from Central America. The frames need to change whenever the decor does, so sometimess the fast turnaround on “custom” frames from whatever they have in stock is also a benefit.

However these shops have their limits. We have a Guatemalan textile we dearly love. It only cost only $80 (plus airfare and a sabbatical) but display required cleaming, repair, stretching, and mounting. Not the kind of thing you trust to the framing hacks around the corner. After two months and an $800 dollar payment to a really good frame shop we have the signature piece for our upstairs. Ridiculously expensive frame? yes. Worth the cost? absolutetly.

To summarize: expertise and the tools to realize that expertise are expensive — the proprietor may have to wait days for customer like me to show up.

10 A.S. August 22, 2005 at 10:36 pm

Worked in a retail framing chain. Yes capital cost are high. Proper framing is labour intensive especially if you have to do it over again for anal-retentive customers (there is a speck of white lint on my glossy black matting scream!) There is a high damage and waste rate on materials and finished goods. That’s right one nick or scratch and the whole thing is thrown out. There are always odd size remnants on the parts that are useless and thrown out (what do you do witha 3″x13″ piece). There is also a high cost of insurance in case someone’s precious art gets damaged. We also have to pay replacement cost for things like portrait photo’s if they get marked (the photographers are extortionists). And many customers dispute the results and therefore the price after the framing is done (more costs) and refuse to pay the balance owing. And yes you have to keep a full inventory for custom work, which takes up space. Even if that style rarely sells.

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12 Bruce June 7, 2007 at 3:41 am

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huge boobs galore
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just facials
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little april
little summer
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milton twins
more gonzo
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my friends hot mom
my naughty latin maid
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my sisters hot friend
naughty allie
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her first lesbian sex
his first facial
his first gay sex
his first huge cock
hot campus teens
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housewife bangers
huge boobs galore
insane cock brothas
just facials
latin adultery
little april
little summer
met art
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milton twins
more gonzo
my first sex teacher
my friends hot mom
my naughty latin maid
my sex tour
my sisters hot friend
naughty allie
naughty america vip
naughty bookworms
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neighbor affair
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backseat bangers
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huge boobs galore
insane cock brothas
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latin adultery
little april
little summer
met art
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milton twins
more gonzo
my first sex teacher
my friends hot mom
my naughty latin maid
my sex tour
my sisters hot friend
naughty allie
naughty america vip
naughty bookworms
naughty drive thru
naughty julie
naughty office
neighbor affair
orgy sex parties
porn stud search
prime cups
rectal rooter
seduced by a cougar
she got pimped
simpson twins
so cal coeds
sperm swap
squirt hunter
tamed teens
teen brazil
teens for cash
teen topanga
texas twins
trixie teen
twinks for cash
virgin teen lesbians
wild fuck toys
squirt hunter
all internal
american daydreams
asian 1on1
asian parade
ass masterpiece
ass traffic
backseat bangers
bang boat
black cocks white sluts
boob exam scam
bookworm bitches
border bangers
bubble butts galore
college fuckfest
college wild parties
couples seduce teens
diary of a milf
dirty latina maids
fast times at nau
first time swallows
ftv girls
gangbang squad
gay blind date sex
gay college sex parties
give me pink
her first anal sex
her first big cock
her first dp
her first lesbian sex
his first facial
his first gay sex
his first huge cock
hot campus teens
housewife 1on1
housewife bangers
huge boobs galore
insane cock brothas
just facials
latin adultery
little april
little summer
met art
milf seeker
milton twins
more gonzo
my first sex teacher
my friends hot mom
my naughty latin maid
my sex tour
my sisters hot friend
naughty allie
naughty america vip
naughty bookworms
naughty drive thru
naughty julie
naughty office
neighbor affair
orgy sex parties
porn stud search
prime cups
rectal rooter
seduced by a cougar
she got pimped
simpson twins
so cal coeds
sperm swap
squirt hunter
tamed teens
teen brazil
teens for cash
teen topanga
texas twins
trixie teen
twinks for cash
virgin teen lesbians
wild fuck toys
teens for cash
all internal
american daydreams
asian 1on1
asian parade
ass masterpiece
ass traffic
backseat bangers
bang boat
black cocks white sluts
boob exam scam
bookworm bitches
border bangers
bubble butts galore
college fuckfest
college wild parties
couples seduce teens
diary of a milf
dirty latina maids
fast times at nau
first time swallows
ftv girls
gangbang squad
gay blind date sex
gay college sex parties
give me pink
her first anal sex
her first big cock
her first dp
her first lesbian sex
his first facial
his first gay sex
his first huge cock
hot campus teens
housewife 1on1
housewife bangers
huge boobs galore
insane cock brothas
just facials
latin adultery
little april
little summer
met art
milf seeker
milton twins
more gonzo
my first sex teacher
my friends hot mom
my naughty latin maid
my sex tour
my sisters hot friend
naughty allie
naughty america vip
naughty bookworms
naughty drive thru
naughty julie
naughty office
neighbor affair
orgy sex parties
porn stud search
prime cups
rectal rooter
seduced by a cougar
she got pimped
simpson twins
so cal coeds
sperm swap
squirt hunter
tamed teens
teen brazil
teens for cash
teen topanga
texas twins
trixie teen
twinks for cash
virgin teen lesbians
wild fuck toys
twinks for cash
all internal
american daydreams
asian 1on1
asian parade
ass masterpiece
ass traffic
backseat bangers
bang boat
black cocks white sluts
boob exam scam
bookworm bitches
border bangers
bubble butts galore
college fuckfest
college wild parties
couples seduce teens
diary of a milf
dirty latina maids
fast times at nau
first time swallows
ftv girls
gangbang squad
gay blind date sex
gay college sex parties
give me pink
her first anal sex
her first big cock
her first dp
her first lesbian sex
his first facial
his first gay sex
his first huge cock
hot campus teens
housewife 1on1
housewife bangers
huge boobs galore
insane cock brothas
just facials
latin adultery
little april
little summer
met art
milf seeker
milton twins
more gonzo
my first sex teacher
my friends hot mom
my naughty latin maid
my sex tour
my sisters hot friend
naughty allie
naughty america vip
naughty bookworms
naughty drive thru
naughty julie
naughty office
neighbor affair
orgy sex parties
porn stud search
prime cups
rectal rooter
seduced by a cougar
she got pimped
simpson twins
so cal coeds
sperm swap
squirt hunter
tamed teens
teen brazil
teens for cash
teen topanga
texas twins
trixie teen
twinks for cash
virgin teen lesbians
wild fuck toys
wild fuck toys
all internal
american daydreams
asian 1on1
asian parade
ass masterpiece
ass traffic
backseat bangers
bang boat
black cocks white sluts
boob exam scam
bookworm bitches
border bangers
bubble butts galore
college fuckfest
college wild parties
couples seduce teens
diary of a milf
dirty latina maids
fast times at nau
first time swallows
ftv girls
gangbang squad
gay blind date sex
gay college sex parties
give me pink
her first anal sex
her first big cock
her first dp
her first lesbian sex
his first facial
his first gay sex
his first huge cock
hot campus teens
housewife 1on1
housewife bangers
huge boobs galore
insane cock brothas
just facials
latin adultery
little april
little summer
met art
milf seeker
milton twins
more gonzo
my first sex teacher
my friends hot mom
my naughty latin maid
my sex tour
my sisters hot friend
naughty allie
naughty america vip
naughty bookworms
naughty drive thru
naughty julie
naughty office
neighbor affair
orgy sex parties
porn stud search
prime cups
rectal rooter
seduced by a cougar
she got pimped
simpson twins
so cal coeds
sperm swap
squirt hunter
tamed teens
teen brazil
teens for cash
teen topanga
texas twins
trixie teen
twinks for cash
virgin teen lesbians
wild fuck toys

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