Stephani Stephenson on sat 23 nov 02
here's a scenario and a dilemma that can occur when you do the
wholesale/retail pricing dance.
1. potter sells a pot to retailer at a "50% discount, off retail"
.(potters 'retail ' price is $100 for a pot. Potter 'wholesales' same
pot to a retailer for $50 )
2. Potter sells same pot directly to the public at studio for 'full
retail' price (example, potter sells same pot for $100 ) so as not to
undercut retailer.
3. instead of simple keystoning ( doubling the wholesale price and
selling the pot for $100) , the retailer prices the pot at $185, more
tripling the wholesale price, unbeknownst to potter.
4. retailer then complains to potter that the potter is now
'underselling' them by selling the pot for less at the pottery studio,
and tells potter they won't stand for it!( note : potter and retailer
are not in the same city.)
Go figger....it happens.
how would you advise the potter?
Stephani Stephenson
steph@alchemiestudio.com
Carlsbad CA
ccpottery@BELLSOUTH.NET on sun 24 nov 02
Stephani wrote .....
1. potter sells a pot to retailer at a "50% discount, off retail"
FIRST of all ... you are NOT selling at a discount !!! You are selling this pot at 100 percent of your wholesale price. This is the price you set and should cover your costs plus a profit.
2. Potter sells same pot directly to the public at studio for 'full
retail' price (example, potter sells same pot for $100 ) so as not to
undercut retailer.
POTTER should have told the vendor they will sell from their studio at double the wholesale price. This gives the retail owner a chance to add an opinion.
3. instead of simple keystoning ( doubling the wholesale price and
selling the pot for $100) , the retailer prices the pot at $185, more
tripling the wholesale price, unbeknownst to potter.
4. retailer then complains to potter that the potter is now
'underselling' them by selling the pot for less at the pottery studio,
and tells potter they won't stand for it!( note : potter and retailer
are not in the same city.)
Go figger....it happens.
how would you advise the potter?
YOU DID NOT mention whether or not the higher priced pot actually sold or if it is still sitting on the shelf collecting dust. If it sold, I would say you should raise your prices. Otherwise, I don't think you did anything wrong.
Once you sell a pot wholesale you have no control over how the next person prices it.They could sell it for $51 and you have no say in the matter. The only thing you have control over is how much you sell it for at both retail and wholesale levels.
Chris Campbell - in North Carolina - check out my column on wholesale in the current issue of Pottery Making Illustrated.
Jeremy McLeod on mon 25 nov 02
ccpottery@BELLSOUTH.NET wrote:
> Once you sell a pot wholesale you have no control over how the next person prices it.They could sell it for $51 and you have no say in the matter. The only thing you have control over is how much you sell it for at both retail and wholesale levels.
>
Well, having grown up behind the counter of a jewelry/gift store, methinks this isn't as cut and dried as this posting suggests. I remember several lines of merchandise that came encumbered with agreements that we'd charge a given retail price for same or
risk losing the right to sell the merchandise at all. Perhaps that's changed now that we're in the Valley of the Shadow of Wallmart?
I can imagine a scenario where the retailer does indeed want one's work in their store and is willing to make contractual agreements about retail price. I'd probably not do business (and have turned down two galleries over such) with folks who treat the
artist as serf feeding their entrepeneurial machine. It's a luxury of not making my primary living at pottery, I admit, but it's in everyone's favor when I manage to connect with a venue that understands that we're in partnership to advance both our
interests.
Jeremy McLeod
| |
|
