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Forum nameStartup Stew
Topic subjectRE: Pricing question - opinions please!
Topic URLhttps://www.businessownersideacafe.com/forums/dcboard.php?az=show_topic&forum=119&topic_id=1556&mesg_id=1585
1585, RE: Pricing question - opinions please!
Posted by nightsky, Tue Dec-09-08 10:06 PM
I respectfully disagree with just about everything that you said. I really tried to find something to agree on. Here's why...

>Starting out I think you should try to set your prices as low
>as you can set them.

Why would you want to do that? If you have the best cookie on the market... your prices should reflect that. Otherwise, you will just be another vendor selling cookies. Price can also be a good way to set yourself apart from the other sheep who are selling cookies around you. And, people who know quality will perk up their ears and pay attention.



>You are trying to build your clients.

True... but you don't need to catch them all. A good fisherman doesn't want to catch all the fish in the pond. He wants to catch the large, discriminating ones. You can make more profit, work less stress-filled hours, and actually enjoy what you do if you charge what the product is worth. One of the fastest ways to run your business into the ground is to fight to be the low-priced dealer. There will always be someone else who will come along and undercut your price. Then what?



>Then as prices start to raise, your clients will still pay

Not really. If you start out selling on price... that is where you will most likely have to stay. If you get into the habit of thinking that price is so important - then at the first sign of the customer hesitating, you will throw in the towel and lower the price... because that is what you think they are concerned with. If you go after the customers who buy only on price... then, as soon as you start to raise your price, they will spit the hook and go to the next low-priced vendor. There is NO LOYALTY amongst low-price shoppers. You get loyalty by offering a consistantly great product at a fair price (now, fair may not be fair to 75% of the other buyers, but it is to your customers).



>whatever fee because you're already have them locked in the
>bag.

Low-price shoppers are never locked into anything. They will drop you faster than lightening if you start to raise prices. Nope... no loyalty there.



>The person who was selling the cookies at a very low
>price. He probably don't sell them that low always.

Wrong again. The person who starts out selling low, will usually always stay low, because they are the ones who think that price matters. And, fighting for the lowest price, for any length of time, will run them into the ground and they will close up shop.



>When you are attending shows to sell, you have to ALWAYS try to >either beat your competition prices or be on the same price scale as
>close to him.

Why? If you do that... then you are just one of many other sheep. I would be more comfortable tripling my price than trying to match or beat others around me. At least I would have everyone asking my what I was thinking. And, I would then have the opportunity to explain it to them. If you try to match or beat those around you... you will usually end up walking around the show complaining about how terrible the show is... with all of the other salesmen.



>Now day people aren't concern about the quality
>(in they should be) but they are more concerned about the
>prices.

True for some customers... but those who you say "aren't concerned with quality.. but they are more concerned with price"... are the people who only buy on price. Quality DOES matter to people who have money and are accustomed to getting quality. Cathy is making a really good, great tasting cookie. She isn't making an average one. Those who buy quality will still buy form her.

Here's an example... I have friends who have lost their jobs, others who have had their hours cut way back... and they are all complaining about the economy. Why? Because I have a great product and I don't sell on price. And, the funny thing about all of this is... my friends who have had their hours cut, ask me all the time, "Do you ever work?" I was just asked that two days ago. They ask that because they always see me working one or two weeks a month. What they don't see is all of the behind the scenes work that goes into that week or two that I am actually out painting.

I really hope that you don't take my response to your comments as being attacks. they weren't meant to be. But, I just vehemently disagree.

I hope this helps.



Jeff S.
Night Sky Murals
Award Winning Murals

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