Pricing for small companies

I recently found this article and thought I would share it since we are all worried about pricing.


The pricing strategy of your small business can ultimately determine your fate. Small business owners can ensure profitability and longevity by paying close attention to their pricing strategy.
Commonly, in business plans I've reviewed, the pricing strategy has been to be the lowest price provider in the market. This approach comes from taking a quick view of competitors and assuming you can win business by having the lowest price.
Lowest Pricing Does Not Win

Having the lowest price is not a strong position for small business. Larger competitors with deep pockets and the ability to have lower operating costs will destroy any small business trying to compete on price alone. Avoiding the low price strategy starts with looking at the demand in the market by examining three factors:
 
1. Competitive Analysis: Don't just look at your competitor's pricing. Look at the whole package they offer. Are they serving price-conscious consumers or the affluent group? What are the value-added services if any?
 
2. Ceiling Price: The ceiling price is the highest price the market will bear. Survey experts and customers to determine pricing limits. The highest price in the market may not be the ceiling price.
 
3. Price Elasticity: If the demand for your product or service is less elastic, you can then have a higher ceiling on prices. Low elastic demand depends on limited competitors, buyer's perception of quality, and consumers not habituated to looking for the lowest price in your industry.
Once you understand the demand structure in your industry, review your costs and profit goals as set in your business plan or financials. The low price strategy is best avoided by small business but there are conditions such as a price war that can drag a company into the lowest price battle.
 
Avoiding a Price War
A price war can wreck havoc in any industry and leave many businesses, out of business. In the early 90's, I observed the competitive exercise equipment market enter a price war in a large city market. Profits were plentiful but a price war took the gross margins from 42% to 12%. In less than 18 months, over 60% of the retailers were out of business while my division went national. Take these tips to evade a deadly price war:
Enhance Exclusivity: Products or services that are exclusive to your business provide protection from falling prices.

Drop High Maintenance Goods: There may be products or services in your business that have high customer service and maintenance costs. Drop the unprofitable lines and find out what customers don't want.

Value-added: Find value your business can add to stand out in the marketplace. Be the most unique business in the category.

Branding: Develop your brand name in the market. Brand name businesses can always stand strong in a price war. Leave the price-cutting and price wars to big business. Small businesses with solid pricing strategies can escape a price war and low price position. Carefully, consider your price decisions. Your business depends on it.

I found this article BRILLANT  often we lower our prices too much. Although we all KNOW that price doesn't always reflect quality....our society has brainwashed us to believe the more something costs the better it is... Just something to think about the next time you think being cheaper than so and so's store.....you may be hurting yourself.

Out with the old and in with the new!

This weeks featured artist on etsy was the last straw for me! the featured proudly professed how she is inspired by the resourcefulness of people who don't have money while she sells her 45$ panties and High Priced lingerie. I am not certain if these are rich people with no money, but as an actual person with no money I buy my cotton panties in a bag for 12$ for 5 pairs.....if I splurge on fancies it's 5 for 20$.

A few weeks ago I came across http://www.luulla.com/  My supply store gets alot of hassle from etsy so I decided to start moving it over to luulla and see what happens, all I got was helpful staff, who diligently moved each one of my listings over and uploaded them all manually (MANUALLY!!!!) all 176 of them pictures and all.

Tommy told me it would take a few days. Once they were done he told me and I had a look and wow....perfection. It is nice to be able to put my shop in someones hands and trust all will go well.... I was happy with the 6 months of free service, I never dreamed the was a company that would do all this.

I am now gunning for a spot for me and the boy. The feeling of luula is light, their staff cares and even helps promote ALL shops....not the most artsy fartsy one with the best pics and  overpriced pieces of folded paper.

Do I hate etsy....of course not...but I am tiring of their system. My supply shop is harassed alot for really what boils up to nonsense.....while overseas resellers RUIN the market with mass produced "handmade" goods simply because they sell so much more, and raise etsy's profit higher they seem to slip under the radar. I recently  had a friend have to send in pictures of her making all her items because it was thought perhaps they were not handmade when this shop owner was clearly a handmade shop....the hassle they gave here was truly undeserved, and sooner or later it will happen to all of us. The traffic and sales from etsy can't be argued, but if I have to read on more feature artist and their bullsht story i might vomit some handmade puke!

I am PRAYING that luulla takes off. Perhaps if etsy could realize that without it's sellers they would have no paycheck or site, eat a little humble pie and try to help out the underdogs (like those of us who have  made less than 20$ this entire month) perhaps we wouldn't have our panties in a bunch ready to jump ship to those that simply treat us properly....like artist, people and part of something greater!

Thanks luulla!!! I wish you, and us sellers all the success in the world. Keep treating us well and we'll tell the world about you....value us as artist and people and we'll return the favor in sales and word of mouth!

A week of good....than bad

I always try to stay positive so I will start there

Got an amazing deal on a handmade quilt at sinclaieville . I love it. It's so perfect!  I have always had a soft spot for quilts...the amount of time and work that goes into it amazes me.  This quilt was perfect. A mix of purples and greens with a few pops of pattern. Also I liked that it was backed in black, I find it adds a modern touch.

I was shocked when this quilt had been marked down to 35$. It wa over I had to have it. It came smartly wrapped in a clean garbage bag in a great well wrapped box. It did'nt take too long, and after a handwash and line dry it has'nt left the couch yet! In our house we are big cuddlers....our new couch we bought when we moved is a huge oversized blue faux suede with room for 4 to stretch right out. We often lay all over the couch in pj's falling in and out of naps cozy under handmade blankets and quilts, watching reruns of looney tunes with the boy. It's a wonderful way to spend the weekend. I would suggest everyone check out sinclaieville - gifts from a quilters heart   They do still have quilts at amazing prices and also sale ones too. But most of all Tami is an amazing seller, the love she has for what she does shines thru. I would buy here again anytime my budget allows.

The bad

The boy has bronchitis  ICK   so shipments are slightly delayed as he is home with me from school. Oddly it has'nt dulled his loudness or obsession for video games.....but I am glad to be able to baby him for a bit. Now that he is 5 he does'nt seem to need me so much (not at all if you'd asked him)  His teeth are loose, he picks his own outfits......and breaks mommy's heart with his sudden burst of lippy comments!  As much as I miss my baby boy I am also amazed by my little man daily. This picture is from his christmas concert!

Coming soon!

Next week I will be posting our blog interview with Traci at Sampler village. I am so excited to ask her a few burning questions. She is so talented and kind and really supports artists! The handmade world is lucky for this lady! This month, as with last month we will again be  in the Sampler. Plus we will be including a 20% off code also for anything. Se you next week!

Stores I love

So I am starting my destash store on www.luulla.com and needed a new banner. I tried to make one but it never works out so well! I searched and searched but also didn't want to invest alot because I don't know how luulla will go. I came across this cute shop http://www.etsy.com/shop/DollarBanners DOLLAR BANNERS.

WHAT??? banners for 1$. Indeed it's true!  I fell in love with the bluebird design. I don't like elegant la di da stuff because that's not who I am. I love birds, and lots of color and something that you don't see everyday. 

I contacted The shop owner about it and explained I needed a specific size. She explained she normally charged an extra fee for resizing but I didn't have to worry she just took care of it. I could have added an avatar for 1$ but I had previously decided to use my picture of me so people can see me.

WELL, within no time she sent me this!

Valerie is funny, kind and easy to work with and I would EASILY recommend this seller to anyone....and already have!

please take a minute to check her out. for 1$ you can freshen your store whenever. I didn't ask about custom but Valerie is so easy to work with I am guessing it would be fine!

This is for sure a store I love

Feeling like I got my big girl panties on!

sigh....DEEP BREATH

it's been awhile eh?

Well I am glad to be back! Christmas was great/terrible but me and the boy had a great time. Life has been insane lately. The store was SO busy before christmas.....naturally after christmas it's dead. SO!!!!! I enrolled in college... I will be taking a class for credit about autism and the asd spectrum....hmmmmmmmmmm wonder what inspired that?

what else?      OH THE BOY MADE IT TO FIVE! Yep! 5 years old...broke my heart but I am proud because we both made it! He had his first play date with a friend from school on his birthday it was alot of fun! They both are adhd so it was a very interesting day! 

Lots of new stuff in the shop including a 10% of candle and tart sale, 75% off clearance sale and new roll on perfumes and jewelry!





Thank you guys so much for reading my blog

Poppin my guest blogger cherry!

Some point soon I will be having my first guest blogger....as I wondered who to pick.....I wanted someone fun, smart, kind and someone who I think has helped the handmade movement!

SO I am working on a list of questions for none other than the lovely TRACI of Sampler Village. Despite being all the previously mentioned things she is also HONEST. Look for her spot coming soon!

AWWW sorry blog readers

After the review I made of legit bad product became a mental case all over my blog  decided to take a break. BUT I;M BACK!!!!!!

And BOY do I have a gazillion of reviews for you!!!!! not just crafters either.

I have missed blogging so much!