Thursday, October 18, 2012

All the Same or Not?


I need your opinion. Currently I price my burlap according to the costs I incur to produce it. For example, this bag using my pricing structure would be a dollar more than the exact same bag without the stripe. If it were washed, I'd add another dollar for that. I also charge according to the design. I have a ton of different designs, some of which cost me more to produce than others.

Another dealer advised to charge the same for all of the bags as customers don't understand why one would be more than another. I can see her logic but hate to charge more for an easier bag and take a loss on a special design.

What do you think?


11 comments:

  1. My advice is to calculate the average cost to produce your lovely bags. I would have two prices one for no design and then one for the type of design you are currently employing.

    This may be difficult at first and you could incur some minor loss per bag while compensating for a more costly design. However, if the difference is essentially negligible go with a straight forward pricing structure.

    Additionally, I agree from a marketing stand point you do not want any reason a customer might question, you only want the customer's thought process to be, "I love it, I'll buy it".

    Hope this helps.

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  2. Nicole Samuelson auntienc@hotmail.comOctober 18, 2012 at 8:30 PM

    Hi Kitty, Regarding your question all the same or not, Definately Not. If customers inquire about the differences in the prices you could explain that you price according to your production costs, in order to give your customers the best possible prices. The prices therefore vary from basic to designer, depending on the designs,colors,additional ornamentation,etc. I price according to my cost also. Most of my customers understand price variances without question & appreciate the prices and quality they receive. For the customers who don't understand why there is a price difference, I post a little note with an explanation which they appreciate or you could just talk to the desk /cashier personnel and ask them to explain on your behalf if a customer asks. I hope this might be helpful for you and I'm sure you can word this better than me, but that's my opinion for what it's worth. Kitty, I so enjoy reading your posts everyday, they are inspirational,informative,and many times funny which is wonderful!Also , i hope Buster gets well soon.

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    Replies
    1. Thank you so much. I have considered making a sign to explain the price differences. Maybe I could have some "price groups which would simplify things for the front desk. Buster has made some real improvement today which is wonderful : )

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  3. I'm a little torn, but, usually price a little more for something that took more time or just turned out looking nicer!

    Carol

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  4. I'm torn as well as to what to do with your pricing. Looks like you are getting some good advice. I'm glad to see that your etsy mini has grown to 4 windows!! You go girl!

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  5. I decided to upgrade my look and eliminate the lower priced items and continue to refine my look with the middle items. I will also continue to offer the higher priced speciality items as well. It seems like a workable compromise. I make a note on the higher priced items stating that prices are based upon the time and skill required to make each item.

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  6. Hi I just found your comment on my French Market Blog and I wanted to say thank you for the lovely comment and thanks also for following. I love making new friends.
    Your blogging sister, Connie :)

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  7. You got some great advice---yay! I hemmed and hawed and couldn't decide how I felt about it. The burlap is awesome!

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  8. Thank you for your comment and your compliment!

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