www.bearlygrown.com

I started a new biz and am dealing with pricing issues.

I have done the research and have come up with a fair price, but have been getting some flack from friends.

Let me know your thoughts.

Also-
Please know that this is a temp website and the official one is being designed now for our launch in Feb/March.

Any feedback on the business would be GREAT!
THANK YOU

DEB RYAN

It has been my experience (at least in my field) that my friends were the last ones to test pricing on.

Family and friends tend to think they should be comp'd on the items. If your research of the market shows your prices to be within the mainstream -- stick to them. after all, your market isn't your friends. It's moms and dads of children who are leaving their toddler years (or so).

Obviously, since customers are providing you with the bulk of the material, your costs are relatively low. But you also have to consider your time. How long does it take to create a bear? A blanket? How much in supplies (thread, etc.) does it take to create an item?

Look up similar products online and see what they are charging.

And always remember your target market!

Good luck!!

Lisa :D

http://www.infoesource.com

Rather than test your pricing on your friends, you could set up an adwords campaign and measure your conversions. If you don't get the conversions, change something.

:) What is an "Adwords Campaign" and how is it implemented? TIA.

Wow! Great product. Great name.
Pricing is always tricky. Rather than leave it to chance or guessing try looking here (scroll all the way to the bottom). There is a great resource here that helps you arrive at the best price using very specific criteria. Take a look:

http://smallbusinessstartup.biz/recommended/

I have been involved with similar craft type items in a business model before, and I will be up front it is hard for customers to see the time investment in items like this. A customer sees a teddy bear, and thinks of the one they bought at walmart for $10.

I think that the best price point will probably be $29.99 with modest shipping charges (less than $10). With the right marketing to the upper middle class customer and for gift situations you can maybe get as much as $49.99 with free shipping, but I think that would be pushing it to get any volume. I would probably start with the $49.99 with an ad program focused on that customer and see how it goes. If it does not work lower the price.

If you are priced too high I think that you will drive customers to print off a picture and say aunt betty, gramma, or whoever can you make one of these with my old baby cloths. Also, people will copy you and take it to ebay if there is room for margin, and realistically with a product like that you will not beable to stop them.

Thanks so much for your post/reply.

I should have mentioned that I am targeting high end specialty shops.
We live in the NYC metro area so the pricing would be much higher than $50.
Although I am sure granny/aunts can sew up a storm, we include 10-16 outfits with embrodiery, specialized service and a computer generated photo/memory one sheet keepsake as well.
So the home made option isnt really competition for someone who is serious about keepsakes.

Always great to hear positive feedback.

Thanks!

D.Ryan
Bearly Grown Keepsakes
www.bearlygrown.com