Need Advice on pricing

[SUBDOC]

This is my first post.

A good friend of mine owns a sales business (small private airplanes) and has approached me about doing a large order of pens that he can give to clients. I have been selling pens for 2 years now and have done quite well. I have sold at craft shows and also at craft stores. I haven't ever done a "corporate order" and I was looking for advice on how others have priced a large order like that. I am a small time operation. My profits are not usually large but they cover my hobbies of hunting and other woodworking projects and buying my wife gifts. Any advice is appreciated. Thanks.

 

[john lucas]

I've only done one corporate order so take this like it is. I didn't give any discounts. It was 50 ornaments. Maybe if it had been 100 or 500.

 

[Frank Kobilsek]

Doc,
It depends how aggressive your regular price is. I don't do pens for crafts shows but I do make them for some business clients. A 'Good friend' (business client or not) ordering at a time when I need a project or some cash will get a 25% discount but no more.

Keep in mind that your friend selling planes would pay $100 for a decent Mont Blanc. He is probably not giving away $3 logo pens to those kinds of customers. Just be fair but if you want to give him a break its OK. His customers have potential to be your clients at which point there will be no pricing guilt based on freindship.

Frank

 

[SUBDOC]

I have been told by many people(customers, fellow turners and the craft store owner that sells my pens) that my prices are very low. I want to give my friend a good deal and at the same time I don't want to cheat myself.

I like the idea of 25%. I will have to work up some numbers and see if it gives me heartburn! Thanks

 

[Ron Sardo]

Some thoughts to ponder.

It is easier to lower a quoted price then it is to raise a quoted price.

If people are telling you your prices are to low, then they are right.

Is it still fun after turning 100 pens for a client? Is it still worth the price you quoted?

 

[Bob Chapman]

pricing

That is excellent advice Ron, I can't fault the logic, and couldn't have put it better.

Quote the guy your regular price on the grounds that they may not be aeroplanes, but they're just as good quality.

Bob

 

[NBHowe]

Pen Price

If other poeple are telling you your prices are low, quote the Airplane salesman our regular price. Then put 25% on all other sales. Now you are giving your friend a brake and getting what you should be getting from everyone else.
Nigel

 

[n7bsn]

Another thought... since these will be advertising pens, look into getting them laser engraved (and add the cost+time/effort to your normal price)

 

[SUBDOC]

Thanks all for your advice. I had already planned to have them laser engraved as well. I have an engraver that cuts me good deals based on quantity and what I plan on charging my client I don't have any fancy literature or brochures like I have seen some have. There is a guy in my area selling slimlines made with rosewood for $45. and he sells them. Kind of iritating that someone can take advantage of people like that. They have no character to them and the finish is almost non-existent. I guess some people feel they have to have a brochure to justify their prices.
To raise my prices is as simple as changing my mind or in some cases the jewlery tags that I have on some and I think that I will. I have read alot on this forum about perceived (in the eyes of the customer) quality by bumping up the price. I feel that my pens are quality, but the question of whether the market will bear the price, I think has been answered.
Ron, your point of will it still be fun after turning 100 pens is well taken. I have never wanted to become a slave to my hobby...at that point is it a hobby anymore?