pricing quandry

danaohAugust 29, 2008

Pricing is always such a quandry. Do you price it so that it really sells, or do you try to get more and take a chance they don't sell as well.

I have been selling cakes in a mug, nicely packaged, for $5 each. It costs me about $1.70, including all packaging materials, mug and mixes. I have not been counting my time. Finally figured it out, my cost is about 34%. The thing is, people buy them in multiples for co-workers and "just in case", and $5 each seems to work well. Should I take a chance and raise the price to, say $7 or what(?), or just keep it as is.

Last year I sold out of my 15 at a very small show that was one day. This year I am doing one of the largest in the area, 2 days. I have about 50 of them. (I can always use leftovers as gifts, too) Thanks for your input.

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SEveral things to consider. Where is the show, how well advertised? How many other vendors that might be selling same type things? A well advertised show in good area (lots of parking,easy to get to etc) with large variety of vendors probably get $7. How long do your mixes "keep" could they be xmas gifts if purchased now? What part of U.S. makes difference too. Could not mark them & make 2 signs,put 1st sign up- nicely decorated with several colors with $7. price. If nothing is selling, stitch to similar sign with $5. Some people set limits of $5 for office girls gifts etc. Everything has gone up this yr so I would sure try $7. Sorry so long winded! Oh, could you add a little bag of sprinkles or decoration. I saw someone that made them up on another site.Maybe you include that already. Good Luck! Jan

    Bookmark   August 30, 2008 at 12:56PM
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$5 is a good price since a lot of gift exchanges are $5 or $10.

HOWEVER, this is a big show and very possible you will sell at even at $7. I think having two pricing signs is a good idea, you will be able to tell right away if $7 is too much.

Sometimes I would set $7 for one item, but if they bought multiplies, they would get a price break. 2 for $10 (which is your original price), you might find them buying by the armfuls.

    Bookmark   September 1, 2008 at 8:14PM
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The idea of two signs for the same show is wrong. What about the people that bought your mug for $7 and came back later only to find the price was now $5? They would feel ripped off.

How fast did your $5 mugs sell? Were they gone in an hour or did they take the whole day to sell? If they went in an hour, then raise the price. But if they took the whole show to sell, they were priced correctly.

Now you mention a 2 day show. Are you making anything else besides these mugs? I hope so. Because 50 mugs at a 2 day show is nowhere near enough. That's only $350 in sales at $7. Other exhibitors will be at that show expecting sales of $1,000 to $2,000.

You have a great idea in these mugs! If it were me, I would be concentrating on just the mugs and becoming known for them. I would look into having a display of them with different themes and have at LEAST 250 ready to go for every show. You can get the mugs wholesale by the case. And look into the other ingredients at wholesale too.

Good luck
Chris in VT

    Bookmark   September 3, 2008 at 7:14AM
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These are my second craft. My first one is felted sweater purses. Will have about 20 done, plus some smaller bags. Love doing those, too.

    Bookmark   September 3, 2008 at 1:39PM
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Then you're confusing your customers. You have two completely different mediums. And they aren't even related.

The most successful exhibitor at any show is the one that has one product or medium.

I made house nuumbers for years. I fired the numbers on ceramic tiles and made a frame out of wood in various shapes. Once I had only one product, sales took off! I had lines in front of my booth. I was known by everybody as "The House Number Guy".

You have less than 5 seconds to attract a customer to your booth at any given show. You need to "grab" them with one product. Too many different products will just make the customer's eyes glaze over and they will just go to the next booth.

I spoke to my wife about the mugs (She's the brains of the outfit.) and she thought they were a fantastic idea. She started envisioning a multi tiered display with the mugs made up like mini gift baskets with different themes.
To quote her: "If done right, that could be a real money maker!"

    Bookmark   September 4, 2008 at 7:07AM
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Would love to see the felted purses and mugs. Could you post pics of them? Would be helpful to see for pricing. Donna

    Bookmark   September 6, 2008 at 11:39AM
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