how do I name my price?

[forgehead]

Hey everyone,

I am brand new here, I was wondering about a few things. What do I charge, how do I charge, and how do I go about figuring up how I need to charge?
I can give you the site I am building, prospectively, and could you give me your opinion?

[percentages]

Welcome to WW!

>how do I name my price?

A little less than your competitors until you get a foothold. Then you can adjust accordingly ;)

[Essex_boy]

I do this

product cost plus purchase tax x my profit margin + packing cost+ payment receiving charges + 3% margin of error= Final selling price

One thing I will say is getting your postage costs correct, I made a serious error once and lost £700 in a night...

Becareful

[Receptional]

If you are selling a product, Do what Essex says.

If you are selling a service - Add value by doing more and sell it more expensive than the market leader.

[Essex_boy]

Hmm good point Ive known products not to sell because they are to cheap! Strange but true, customers seem to have an idea that the item is going to cost X, thats that.

No amount of persuasion will get them to part with their money other wise.

[forgehead]

thanks everyone for your input, this is still in the later stages of setting up, but tell me what you think the price may be............

thanks in advance

<nip>

[edited by: Brett_Tabke at 7:23 am (utc) on Dec. 6, 2003]
[edit reason] see tos : no site reviews. [/edit]

[RedWolf]

As far as pricing, the standard formula in the craft world that most professionals use is:

Materials Cost + Labor Costs + Over Head + Profit = Wholesale Cost

Retail is twice wholesale at a minimum and most galleries are at 2.2 to 2.6 times cost. Higher end (righ rent) galleries often have 3x markups or more depending on their expenses and market. If you ever plan to wholesale, you will not want to undercut your stores, so use at least a 2x markup for your retail price. I usually use 2.5x my wholesale price because many galleries and stores get upset abot their suppliers selling on the web to begin with.

[ILLstyle]

just name what you feel is the right price.

[travmed]

About prices being too cheap. I ran a software store once and actually received a letter from Microsoft because they thought I was selling warez. When I upped my price not only did the letters stop but the buying increased also.

Guess you have to find the happy middle.