The Art of Pricing Your Products

[ChinChic]

hi all....if you are running a retail biz, i'm pretty sure many of you belong to one of the following:

1) you have a shop front or pushcart or even both + an online shop
2) you have an online shop and take part in fairs & bazaars on a regular basis
3) you have an online shop, take part in fairs & bazaars occasionally & having a full time or part time job...
4) you consign your items to shops, you have an online shop and also take part in fairs & bazaars

does any one of the above describe you, especially scenario 2, 3 & 4? if yes, i'm really curious to find out how do you price your products at various points? ie for the same item, do you sell at the same price regardless of the rental rates and overheads? e.g. this bazaar A charges just $20 for 2 days and bazaar B charges $300 for 2 days for a booth, do you still sell your items the same price at bazaar A & B?

also, if you are just running a blogshop with no or minimal overheads and having a pushcart at the same time, you price your items the same pricing?

i'm quite baffled by this because i intend to start a blogshop where the overheads is minimal, i could afford to price my items lower, but next month, i intend to take part in a bazaar that will cost me a few hundreds in rental for 2 days, then i cannot sell my items the same price, if not i would not be able to cover back my costs and earn profits.

what should i do?

[EarthlyScents]

I don't suggest that you price your items just a little above your cost-prices because if you consider having a physical retail place in later stage, you'll have to increase the prices (both online and physical). Your existing customers who buy from you online may not be able to comprehend the price-leaps. There are market-values for everything so if your items fall below a certain market price (depening on what you sell and where they are produced), some people may think they are inferior products.

[ChinChic]

i see, thanks for your valuable advice... after thinking through i'll try to keep my pricing consistent, else i may cause people to be unhappy with me. it's tough but i'll try

anyone else willing to share some tips?

[anneffendi]

Originally Posted by ChinChic

hi all....if you are running a retail biz, i'm pretty sure many of you belong to one of the following:

1) you have a shop front or pushcart or even both + an online shop
2) you have an online shop and take part in fairs & bazaars on a regular basis
3) you have an online shop, take part in fairs & bazaars occasionally & having a full time or part time job...
4) you consign your items to shops, you have an online shop and also take part in fairs & bazaars

does any one of the above describe you, especially scenario 2, 3 & 4? if yes, i'm really curious to find out how do you price your products at various points? ie for the same item, do you sell at the same price regardless of the rental rates and overheads? e.g. this bazaar A charges just $20 for 2 days and bazaar B charges $300 for 2 days for a booth, do you still sell your items the same price at bazaar A & B?

also, if you are just running a blogshop with no or minimal overheads and having a pushcart at the same time, you price your items the same pricing?

i'm quite baffled by this because i intend to start a blogshop where the overheads is minimal, i could afford to price my items lower, but next month, i intend to take part in a bazaar that will cost me a few hundreds in rental for 2 days, then i cannot sell my items the same price, if not i would not be able to cover back my costs and earn profits.

what should i do?

Pricing your products depending on "your average market value " and location of the place you are selling.If you are selling at expo,then you have to mark up a lot.Even at bazaars, slight mark -up is still ok as generally potential customers WILL definately bargain .
Other things you might want to consider is know your type of crowd/customers depending on bazaar location.Presentation is important, arranging your items in a professional way so that people will not think that you are selling second-hand stuffs Even you are selling a second-hand item , it does plays a part as it attracts potential buyers. Do survey around on how other players are marketing their products.No harm in throwing free gifts/welcome gifts for buyers who bought your items. They will sure come back.The most important of all good customer service.hope this helps.

[Mystech]

Actually, i think you're mostly right. Pricing is a very delicate thing. TOo high, no1 buys. too low, no1 buys. If you have a rare/unique item, then, you need to see percieved value. if yours is not that rare, just look at what your competitors price it at.

[KittyMi]

What about online and offline prices? For the same product, do you think it is ok to price online cheaper than brick & mortar stores? Supposely, you supply to both.

[Shuimu]

Personally I think should not have diff pricing for the same product. I price my clothes higher when the rental is high..but I do not change my price when my rental is much lower. Instead I offer attractive discount telling my customers i am passing the savings to them. It works..save me the trouble of changing price tags !

[Mystech]

never change your pricing like that. if you do, people will get the mindset, why buy from the physical store. just get online. thats one. 2nd would be they will think, This guy must be earning alot, thats y can price so low. and if you're a supplier, you'll be killing the guy who gets from you, creating a bad name for yourself.