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Post by felicity on Sept 9, 2015 16:30:54 GMT
Pricing again!.. I know it was discussed many times but I've got lost sometimes. The question is: The most shops/galleries owners require your prices to be in line with the prices in your Internet shops. But commissions charged vary significantly (and Internet customers pay extra for postage) so how to keep everyone happy? Customers, shop owners and, mainly, myself! If I sell the same item in different outlets - Internet, real shop, fair and ask the same retail price I'll get very different money at the end. Could somebody with more experience provide some guidance, please?
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Post by MTRuth on Sept 9, 2015 20:11:59 GMT
I think since the world is so interconnected that this is more important than ever. You should have the same retail prices in all venues. Otherwise with a variety of prices, people will search out the lowest price and not buy at the highest price. If this is a gallery, then soon, the gallery will not want to carry your work.
If you figure your wholesale price which includes your profit margin, then you need to at least double that for your retail price. Most galleries will either mark up by 2.3 - 2.5 even up to 3x wholesale. That is the only way you can survive any more in a retail business.
If the gallery is taking your work on consignment, then you still need to use your wholesale price, at least double it and then give the gallery the retail price out of which they will take a percentage.
As you say, you will get different amounts depending on the venue, but if you know what the lowest amount you can take is, the rest is gravy. Usually, it will all come out in the wash because you do much more work selling at a retail fair then if it is sold through a gallery.
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Post by felicity on Sept 9, 2015 21:33:56 GMT
Thank you Ruth for your very professional advice! I need to think about it more just to come to terms with it. When you consider the top price the customers are ready to pay and all cuts by shops and galleries not that much left...
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Post by MTRuth on Sept 9, 2015 21:41:07 GMT
Yes, I know it is hard to work out a price that is high enough for you but low enough for the customer to pay. But I would go higher than you think the customer is willing to pay. Try at that pricing for a while and see how it goes. Sometimes raising your prices is the way to go as people seem to respect your work more when it has a higher price tag.
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Post by felicity on Sept 9, 2015 22:07:56 GMT
I'm sure you are right... Thank you very much!
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Post by Shepherdess on Sept 10, 2015 1:59:53 GMT
Yes, if you do not value your work others will not either. Your work is beautiful. You are an artist (I am very jealous by the way:) ) and a craft person. Each of your pieces are works of art.
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Post by felicity on Sept 10, 2015 8:12:06 GMT
Ann you are too kind!.. And thanks for your support! I'll try to find a balance and may be separate functional (and reasonable priced) pieces and more artistic and so more expensive. And present them at different venue, Internet or real.
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Post by MTRuth on Sept 10, 2015 16:24:25 GMT
Good idea! Often that is the way to go. Have separate lines for separate venues and the target audience is often different so you can do more artistic for the higher end audience and functional/more simple for the budget crowd.
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Post by felicity on Sept 10, 2015 16:52:54 GMT
Thanks Ruth!
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Post by zed on Sept 11, 2015 11:00:29 GMT
Ruth did a series called Marketplace Mondays when we first started the studio site: feltingandfiberstudio.com/category/marketplace-mondays/page/2/I think they're all in order of most recent, so scroll down until you get to Dec 2011 for the earliest, but some of the posts go into pricing in more detail. People buying from the internet know they have to pay postage, and when you consider it, it's a lot less than bus/train/tram fair or parking prices so usually people don't really mind. And a lot more work has to go into doing commissions/custom items, so anyone wanting that will understand that too.
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Post by felicity on Sept 11, 2015 11:50:39 GMT
People buying from the internet know they have to pay postage, and when you consider it, it's a lot less than bus/train/tram fair or parking prices so usually people don't really mind. Good point Zed! I've not thought about it... Thank you for the link!
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