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  • #966318
    *Alison*
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    Hi all,

    Just got a couple of questions about pricing of products.

    I run a small business selling little charms – i have always sold these for $1.25. The amount of sales I make each month actually makes a good little profit for the business. I know i probably could sell them for slightly higher price though.

    My questions are:

    * I sell these charms at markets and have kept the price at $1.25. Do you think the .25c could turn potential buyers off? Should I adjust my price to say $1.30 instead?

    * I have a stall at a christmas fair on Saturday and am thinking of doing 8 for $10 type offer. Would you say this would get more customers & sales?

    Any advice on this would be greatly appreciated.

    Thank you
    *Alison*

    #1017413
    Burgo
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    Cost + 100% +10% is one formula we used ages ago.

    $ 1.50 is not a lot of money even $ 2.00 but what do you think you can sell them for.

    Also remember it is easier to drop the price than to increase, so if you start at say $ 2.00 then for a supa dupa chrissie special now $ 1.50, see what I mean.

    Good luck used to love the markets always an atmosphere that shop dont have…………..or is that just fresh air.

    #1017414
    LeelaCosgrove
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    I would hazard a guess that you would TOTALLY get away with $2 – but either way, the only way to know is to test it.

    Trial both price points.

    Track the number of sales you make.

    Take into account variables (you’re not going to make as many sales generally on a rainy day at an outside stall).

    Make a decision from there.

    #1017415
    LeelaCosgrove
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    Burgo, post: 20064 wrote:
    Cost + 100% +10% is one formula we used ages ago.

    $ 1.50 is not a lot of money even $ 2.00 but what do you think you can sell them for.

    Also remember it is easier to drop the price than to increase, so if you start at say $ 2.00 then for a supa dupa chrissie special now $ 1.50, see what I mean.

    Good luck used to love the markets always an atmosphere that shop dont have…………..or is that just fresh air.

    That’s why I love you Burgo … sometimes I think we share a brain!

    #1017416
    King
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    Yes, test and measure is the way to go.
    Are there some that you can have the higher price point on? Remember price is only the customer’s perception. If they think it is nice and good value they will even pay $3, but if they look and feel like plastic that will break etc, then $1.30 might be a fair perception of value.
    Often the little bit of conversation you have with people can implant the value in their minds…”They are really nice and won’t tarnish” maybe all you may have to say!

    #1017417
    bencament
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    I would probably say that raising your price from $1.25 to $2 would make little difference.

    If anything, people will be attracted to the fact that it’s a round figure, especially when you’re working with small amounts like this.

    As long as you’re comfortable selling a product at a higher price and believe that it’s worth that amount, then go for it.

    Just remember that selling things too cheap will only de-value your product, so be careful with your christmas specials if you go down that path.

    Ben Cameron
    Retail Exposure

    #1017418
    Anonymous
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    Hi all,

    Haven’t been on here for a few weeks – with Christmas, young children & work; I haven’t had time to scratch myself.

    Just wanted to update you on this post – I sold at the Christmas fair, increased my price to $1.50 each or 8 for $10 and it was an absolute hit. The 8 for $10 was so successful, buyers who were only planning to purchase a few went for the special. I made a very healthy profit & enjoyed the festive feel of the fair & loved chatting to my buyers.

    Thanks for everyones advice, really appreciated it!

    Alison

    #1017419
    King
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    Congrats!!
    Now the next test is to increase the price again!
    6 for $10 etc

    #1017420
    Jake@EmroyPrint
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    Personally, I’d prefer to buy if it was kept around the $1.50 mark.

    $2 kind of breaks a new price bracket I guess.

    #1017421
    King
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    Emroy, post: 22553 wrote:
    Personally, I’d prefer to buy if it was kept around the $1.50 mark.

    $2 kind of breaks a new price bracket I guess.

    but would you know the old price – unless a few customers had bough previously ;)

    $2 is almost throw away coinage these days

    #1017422
    Jake@EmroyPrint
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    King, post: 22558 wrote:
    but would you know the old price – unless a few customers had bough previously ;)

    $2 is almost throw away coinage these days

    I don’t think the old price would matters … It’s just a mental barrier.

    #1017423
    King
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    If the price point was OVER $2 it might make a difference. But we these items are impulse buys using small change. Anything under two bucks these days does not even rate for a moment’s consideration ij the purchase decision process. If they won’t spend $2 too bad, plenty will at far greater profit. Even if 25% less are sold, the seller has still made more profit.

    With one product I sold, I DOUBLED the price and sales did not take a dent.

    #1017424
    Jake@EmroyPrint
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    King, post: 22571 wrote:
    If it was OVER $2 it might But we these items are impulse buys using small change. Anything under two bucks these days does not even rate for a moment’s consideration ij the purchase decision process. If they won’t spend $2 too bad, plenty will at far greater profit. Even if 25% less are sold, the seller has still made more profit.

    With one product I sold, I DOUBLED the price and sales did not take a dent.

    No matter how much you try and justify your argument, it’s my personal opinion.

    I’m not saying everyone will be like that, just that I am.

    #1017425
    THE SALES WARLORD
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    Spose at the end of the day it’s about the customer and what value they have in the product.

    I reckon if my little girl – or my 30 year old fiancee wanted whatever it was I would pay up to $20 for the same thing you’re charging $2 for.

    It’s really about what value you create, not a commodities price driven market will buy at rate.

    Have you tried doing bundles?

    You can have anything on this piece of velvet for $2 each

    Some of these nicer pre made bracelets with 6 charms for $5

    Or these really ornate ones for $15

    Great way to add value so you can sell to people for who $2 is their maximum or to people who will spend more to get more?

    #1017426
    King
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    my point exactly – perception….

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