Questions on Pricing

[Windom Leather]

Thanks bree. That definately sound like the way to go. I beleive the moral of the story is charge what its worth even if its high, if they buy it great, money in your pocket. If not then dicker with the price and they feel they got a deal and you didnt cut yourself short (as long as you dont go too low). Am I on track here?

[mulefool]

I'm not sure what to think about that dickering on the price if they don't like it. I sell my stuff at a reasonable price and I have to say it sure galls me to have someone want to dicker on it. When I was still building a reputation I did it because I felt like I had to and I wasn't quite sure what to say about why I wouldn't. But now I won't do it. I may discuss ways they could save money on their order without me lowering my price, I am also happy to tell them why I feel my work merits whatever price I'm asking, but I won't dicker anymore. However that said, if someone places a large order I might try to throw something small in or give them some little break. Particularly if I am at a show, I always felt like the people who appreciated my work and didn't expect a discount kind of get penalized if I offer a deal to the person who wants to dicker. I'd rather reward those folks. Chris

[Luke Hatley]

the sign in my shop states: "GOOD THINGS DONT COME CHEAP

and..CHEAP THINGS DONT COME GOOD"....................

[Denise]

Mulefool's post made me remember something we discussed once with a good customer: "If you have a special customer you want to reward somehow, make something extra and give it to them rather than cut the price on something. As they saddle up they will remember that you gave them the extra breast collar long after they have forgotten the $100.00 cut on the price of the saddle." Makes a pile of sense to me.

[hidepounder]

Denise,

I really like that approach....I think it makes good sense!

Bob

[Denise]

If I am recalling correctly, that advice goes back to Matt Eberle, a well respected saddle maker in High River, Alberta who has helped a lot of people increase their skill in building saddles over the years. He is 80+ years old and still going strong. Well worth listening to...

[D.A. Kabatoff]

Bob,

I like your analogy about not selling a $10.00 bill for $5.00. In the saddlemaking world I see it happen both ways... people trying to sell a five dollar bill for ten. Often lack of experience shows in the product and I even believe some makers don't have an eye or aptitude for quality. There are people (customers and makers) who can look at good and bad hand stitching as an example, and not see the difference... even when you point it out, it sometimes falls on deaf ears. These same makers try to charge the same for their work as someone with more experience, finer skills, and a reputation.

As for dickering, I simply won't do it. The price of my work is the price that I feel appropriate for the level of craftsmanship I feel I'm at. It is based partly on my work vs. other saddlemakers and partly on what I need to get to feel good about what I'm doing. I don't put my work or prices in the category of some of the elite modern makers, but I also won't compromise on quality or work for peanuts. As Denise mentioned, I much rather do something extra and not charge for it... when this is possible or appropriate, I do it but I don't tell people this upfront; more of a suprise as an appreciation for someone who may or may not have the means but is still trying to get the best gear they can while still recognizing my dedication by not dickering on price.

Darc

[JohnBarton]

Mulefool's post made me remember something we discussed once with a good customer: "If you have a special customer you want to reward somehow, make something extra and give it to them rather than cut the price on something. As they saddle up they will remember that you gave them the extra breast collar long after they have forgotten the $100.00 cut on the price of the saddle." Makes a pile of sense to me.

This is so true. I use this all the time to reward customers for their patience. I will also use it instead of giving a discount when someone wants to bargain with me.

I grew up in the flea market so none of my prices are set in stone although they are glued down pretty good. I like to bargain sometimes and I don't mind if someone does it with me as long as they are not way out of line.

I'd rather always do a little extra though rather than give money away.

For one of my recent customers I tooled the inside of the pocket and the inside of the lid. I know every time he opens that pocket and lid he will think of the pleasant surprise he got. And I get the gratification of seeing some of my colleagues following suit :-) (of course I borrowed the idea from Peter Main - hopefully Peter I can return the favor someday by doing something you think worthy of borrowing.)

Sometimes it's the little things that make such a big difference in your own satisfaction with a job well done but also in cementing a good relationship with your customer.

I also want to add something to what Bree said about not underpricing your work. Basically I have found that when you work cheap you tend to be sloppier and then if something goes wrong, whether you have to redo some parts before it goes to the customer, or worse after it's gone to the customer and they bring it back, then you have no room financially to cover that loss.

The saying goes "if you don't have the time to do it right the first time then where are you going to find the time to do it right the second time?"

I tell you what, I would rather give a piece away than work my ass off on it for less than I would get at McDonalds.

Lastly, if you make it a habit of dropping your prices to get business then the customers don't respect your or value your work.

In my opinion that is.

[kevinhopkins]

Hi...just wanted to second what John said... lots of good thoughts there. I have a rule here at SLC, that applies to every single employee. Here it is: You can do anything that you want to here. All I ask is that you have a good reason. If you make a decision that I don't think is the best, I'll let you know, and we can go down the road, and we'll all be smarter.

I think there's a time and place for everything in business. I don't like dickering, but I can't say that I won't. One guy wanted a machine from me at a real discount. He worked for Sears. I asked if I could get a really good discount on a lawn mower.....

I don't mind giving something away, as long as I feel the reason is there.

I don't mind dickering, as long as I feel that it's the right thing to do at the time.

I don't mind being hard as a rock on prices, as long as I feel that it's the right thing to be at the time.

I don't mind sending someone to the competition, as long as I feel that it's in the best interest of the customer.

I guess my point is, there really isn't a right or wrong when it comes to pricing, as long as you do your best for your customer, and are at peace with your decisions. I've rambled enough!

Kevin

[JohnBarton]

I don't mind sending someone to the competition, as long as I feel that it's in the best interest of the customer.

I want to expand on this point a little and add that I don't mind sending someone to the competition when it's in "my" best interest.

Sometimes I get someone that is downright hard to deal with and while normally I view such customers as opportunities to make loyal customers out of them once in while there is that one that just rubs you the wrong way.

I don't mind giving those people a detailed map to my competition's shop. :-)