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    7 Replies Latest reply on May 23, 2009 7:50 PM by Yakimova

    Need help with product and price evaluation.

    Yakimova Adventurer

      I'm making pendants and I need your help evaluating my product, basically to tell me if you like my pendants or not. The pendants are made from river rocks. They are drilled, carved and painted by hand. The process is long and difficult. I also need your help pricing my pendants. I'm thinking about $25 per piece. What do you think? If interested send me an e-mail with "Product Evaluation" in the subject line. I will send you 3-4 pictures of my pendants for your opinion.

      My e-mail is nitogirl@hotmail.com

      Thank you for your time! :)

      sasha

      P.S. My designs promote gay pride, equality and AIDS awareness.
        • Re: Need help with product and price evaluation.
          amspcs Ranger
          Pricing a product should not be a 'guess'. Rather, it should be the result of doing advance planning
          and homework. Have you carefully computed and budgeted your overhead and costs of doing business?
          Have you computed your 'overhead factor'? Obviously, supply and demand factor into the equation as well, but this ideally is something to have been considered before opening your doors. If you haven't done these steps
          yet......StOP!!! Before you do another thing, consult SCORE, SBA, or professional advisors, to make sure you're on the right track. Good luck.
          • Re: Need help with product and price evaluation.
            phanio Pioneer
            Pricing your product is not only based on providing you enough revenue to cover both variable costs and your overhead but also what the market will bare. What proces are competitors charging? What prices are your customers willing to pay? if you don't know your competitors or customers - then this is where you should start.

            Have you attended trade shows or fairs or any of these types of events - these are great places to show your wares as well as do research on competition and customers.

            Further, try to give a few away to local celebrities - then partner with them to promote your product.

            Try SCORE again - ask for another counselor or find a SBDC - you have to go and get what you want. If you are not satisfied - push harder to get what you want.

            Business Money Today
              • Re: Need help with product and price evaluation.
                Yakimova Adventurer
                My product is unique so there is no base for comparison with similar products... there are no similar products. Therefore I have no way of knowing what my customers will be willing to pay for it. I already know what I will charge for each item so I can cover my overhead and make a profit. However, since there is nothing like it on the market, I might need to adjust the price along the way depending on demand. It's easy when you sell a product that's been already tested but with a new item things aren't as easy as they may appear.

                I like the idea of giving away few to local celebrities. That's a clever approach and I've thought about it from the very beginning but it's difficult to get in touch with these people. There are 2 people in particular that I want to partner with but here in Hollywood is not easy to get access to them (without getting arrested first!).

                My experience with SCORE was very discouraging and I know a couple other people who met with different SCORE counselors and were also disappointed. But I'm not giving up and I'm determined to make it one way or another.

                Thanks for your advice.

                Best of luck!
              • Re: Need help with product and price evaluation.
                puzzleman Tracker
                Sasha, I would suggest selling your items at local art and craft shows. Not having seen your product but seeing your description, you should focus on art shows more than craft shows.

                Art shows are more high end and draw people prepared to spend money. This also provides a great way to talk to the people interested in your products and get a feel for what they are willing to pay.

                I have just introduced a new product to my mix. In talking to people and taking orders, I found that the price that I set was too low. I have since raised the price by 30% and still have people buying. I found this through talking with my customers and potential customers at the art shows.

                I started my business through art and craft shows.

                Thank you, Jim
                • Re: Need help with product and price evaluation.
                  phanio Pioneer
                  Even with an unique product - there are still ways to compare. If someone does not purchase your product they are purchasing other product that meets their needs. You say pendants - there must be other handcrafted pendants on the market or some type of good that people would buy if your product was not on the market. Given this, what is the amount they are willing to spend?

                  Example, let's say I am in the market for a new motorcycle jacket and I want one that is handcrafted and personally put together. But, I can't find one like this. So, I chose the next best thing that is in my price range - say a Harley jacket from their online store that has some customization to it. The price that I paid for the subsitute (subsitute to what I really wanted) would show a price point at which to start your pricing.

                  I will also put this out there - always start high with your price - it is easier to come down than it is to go up. Plus, many people think that price equals quality - thus higher the price - higher the quality - especailly if the product is unique.

                  Regarding find celebrities - if you want them to help you market - you can approach it to ways. 1) get out and network in places that these celebrities frequent. You might not get in front of them - but you might be able to find their gatekeepers - the ones that can get in front of them.
                  2) Create a very unique story - put the story with your product and send it these people directly or to their gatekeepers (publicists, agents, etc.). It might cost you a little - but watch out if one helps you promte it.

                  Business Money Today
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