Ok….we talked about pricing in yesterday’s post. You can click “here” if you haven’t read it yet.
Shame on you.
Many of you thought I was under-pricing myself with a $75.00 price but when you look at the “comments”……
$75.00 put me in the “buyers” market. Not just the “If this table was my style, I would spend 150 on it market”……I want the buyers market.
I don’t want to have to sit there with the product.
If I had a showroom, storage unit….then waiting “for the perfect buyer” would be a better choice.
I do about five or six projects a week. Move some into consignment or sell on CL….
Then I start on the next batch.
So, at this stage, my intention is to maximize my profit and time and get the product moving in and out quickly.
But you guys are “the market”…..so your input is priceless and the help on these tutorial posts go both ways. I need your input! It keeps my pricing in “check”.
I am BAD about under-pricing and I am constantly learning the CL “ever-changing” market….to see what moves….what is “hot” and where I can get the most “profit.
So….anyways……back to pricing.
Some comments said…..”If I knew what you paid…it might be easier to guess what you listed it for”.
But…that would not have helped you.
What I pay has nothing to do with how I base my price.
Because I will lose profit.
Back in the day……I used to run one of the largest builder developer sales team here in my region. I was responsible for all aspects of the sales, from building, pricing and marketing, to the running of a large sales team. (Don’t get too impressed, it gave me experience, but also the title of un-employed ; ) in this down market )
Our houses we built had a fixed number of cost. So I could say…….”If we put this $$$ on each house…then we cover what our expenses will be and should net this $$$$ consistently. It kept our profits at a great level and consistent.”
Why don’t I do the same with my furniture?
Wouldn’t it be smart to say……”If I want to always make a consistent profit, then always put a mark-up of $50.00 on a piece”….keep it consistent…… then I will know that I will consistently make $50.00 every time I sell a piece.
Here is how that would work.
I spent $7.00 on this table.
I would list it for $57.00 then?
What happens when the table cost me $20.00?
I list it for $70.00?
Couple of points.
I need my “market” to know my basic pricing for tables, chairs, benches etc.
Not have my prices bouncing all around.
Plus, I end up making more in the long run on pieces that I can put a “large” mark-up on.
My product is not a fixed price when I buy it….so therefore my mark-up cannot be “fixed.”
Clear as mud?
Here is another guessing game for you that will give you a good example.
Let me know what you think “you” would buy the following two benches for.
One sold and one didn’t.
The one that sold could have been priced for more.
The one that didn’t probably needed to be priced for less.
They were priced the same.
Crazy isn’t it?
What would you have spent?
Tomorrow will be a post on how to word your ad and what to leave OUT of your ad.
Consignment vs CL
A reveal of an upcoming project and your input of how I should price it.
Hope some of this stuff helps.
It bores me to death and I’m afraid your eyes are rolled back in your heads.
Don’t leave me people.
If you like this….share it……
One thing I have consistently found out. Don’t look at people , that are interested in re-selling, as your competition but your motivation. There are enough clients, followers out there for all of us. Share these tips and I promise…..your generosity comes back to you seventy times seven.
I will share what I have learned and I will learn from what you share.
Have I created a muddled tutorial?
Call me “Confused-scious”.
Let me know your “bids” on the two benches.
Remember…….low or high…..it doesn’t matter.
No answer is wrong….
You will see how it all fits together!
Thanks for your input and can’t wait to see your comments.
Kurt, get your hand off the screen, we are skipping that portion on this tutorial.
Give me your bids, “Mini Flippers”!