The Price is Right

 I presume all entrepreneurs at one time or another have gone through the gut wrenching process of putting a price on their products and services. Let me say that I am no different.

My process to mitigate over/under pricing is to do due dilligence.

• Check Other Businesses Who Sell Like Items /Services.
• Compare Locations (east coast versus west coast, etc.).
• Check Composition of Materials Used to Allow for Variables.
• What Are the Possible Differences in Overhead.
• Use a Formula to Calculate In Order to be Consistent.
• Marketing Research (use survey groups)

There are plenty of ways to check and compare and adjust. One thing is to be flexible and to be able to allow for on-the-spot adjustments. I showed at a local fair recently and wanted to get a feel for how people were spending and how much they would spend.

At one point late in the show after a slow day I told my wife we were going to pack it up in an hour. Less than 10 minutes later I did over $100 in sales and on items that heretofore were hardly even looked at by anyone. Funny thing is that these were not impulse buy priced items and were up there in price.

What caused this anomaly? Or was it an Anomaly at all?

The thing I think caused the rush was one person looking and then another then others wanted to see what was so interesting and then 1 person bought and the other and a third, all in rapid succession.

This is the same thing that happens at a retail store with an empty parking lot. Not much! But when two or three cars are in the lot another joins, then another and then others see people are there and postulate that they are there because they are getting a good deal or some other event that is exciting is going on and they want to be part of it.

Do not keep adjusting your price down until you get a sale - be patient, do something to attract people to come see what is going on - add color and motion to your booth/tent, sound and whatever you can do without being obnoxious.

I am going to learn some magic tricks in the future and see if I can attract people that way.

What do you think?


Doug
"Inquiring Minds Want to Know"
www.JDKellyJewelry.com

Passion for the Sale

What's your passion? What gets you going, make you feel all mooshy inside, I mean besides the obvious things like loved ones and puppies? OK, it's love too, but can you define it?

For me, it is creating something that someone will buy, the thrill of the sale! In the jewelry business, I believe it also defines success.

I think about the time I spend designing in my mind, conceptualizing it, putting it on paper (napkin, paper towel, scrap, magazine or newspaper page),making a model, adjusting and then the final piece. The time spent, some agonizing and some effortless, trying to get the feel in my mind for the look on a customer's face when they see it for the first time. Reading expressions is a good talent to have. When they say, "I'll take it!" is when I get all goofy and then I know I have done a good job.

Of course I can't apply this to my Internet store since I can't see them. I will do another post on how I analyze my online guests.

"Inquiring Minds Want to Know"
Doug
www.JDKellyJewelry.com