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price negotiation

updated mon 21 jun 04

 

Earl Brunner on fri 18 jun 04


To my mind, potters tend to work on a much narrower profit margin, than many
other artists. We often don't have much to cut or discount before we are
working for nothing. The things I like to make the best, which take the
most time, and are the most creative and innovative, often sell for a hugely
disproportionately lower price (per hour)than (to my eye and thought) more
traditional pots. Pots that require little thought and creative effort on
my part.


Earl Brunner
Las Vegas, NV

-----Original Message-----

Cindy Eve wrote:

>I had dinner with a group of non-potter friends earlier this week. One
>friend is taking a painting class and asked his painting instructor whether
>or not she will dicker on prices with a customer at shows. She told him
>only a fool would not try to negotiate on prices with artists and that she
>will usually come down on the prices of her work.
>I have been mulling on this for a few days now. I rarely have people try
>to negotiate on prices and when they do I very rarely will alter the price
>of my work. I usually find that the people who are trying to talk me down
>in price make more in a year that I will make in the next 5 combined.
>I do on occaision throw in freebies for my "better" customers or give them
>a slight discount when they buy quite a bit.
>How do you other potters handle customers looking for bargains? And do you
>offer rewards to long term customers?
>
>Cindy Eve
>Eve Pottery
>Great Falls, Montana
>
>___________________________________________________________________________
___
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melpots@pclink.com.
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>
>

____________________________________________________________________________
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Send postings to clayart@lsv.ceramics.org

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Moderator of the list is Mel Jacobson who may be reached at
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Cindy Eve on fri 18 jun 04


I had dinner with a group of non-potter friends earlier this week. One
friend is taking a painting class and asked his painting instructor whether
or not she will dicker on prices with a customer at shows. She told him
only a fool would not try to negotiate on prices with artists and that she
will usually come down on the prices of her work.
I have been mulling on this for a few days now. I rarely have people try
to negotiate on prices and when they do I very rarely will alter the price
of my work. I usually find that the people who are trying to talk me down
in price make more in a year that I will make in the next 5 combined.
I do on occaision throw in freebies for my "better" customers or give them
a slight discount when they buy quite a bit.
How do you other potters handle customers looking for bargains? And do you
offer rewards to long term customers?

Cindy Eve
Eve Pottery
Great Falls, Montana

John Rodgers on fri 18 jun 04


Cindy, I am a full time potter. I make my living at it. When the bargain
hunters ask for that discount, I always tell them I make my living at
pottery. Then I ask them if they would be willing to discount their
paycheck for their boss. They get the point quick.

Regards,

John Rodgers
Chelsea, AL

Cindy Eve wrote:

>I had dinner with a group of non-potter friends earlier this week. One
>friend is taking a painting class and asked his painting instructor whether
>or not she will dicker on prices with a customer at shows. She told him
>only a fool would not try to negotiate on prices with artists and that she
>will usually come down on the prices of her work.
>I have been mulling on this for a few days now. I rarely have people try
>to negotiate on prices and when they do I very rarely will alter the price
>of my work. I usually find that the people who are trying to talk me down
>in price make more in a year that I will make in the next 5 combined.
>I do on occaision throw in freebies for my "better" customers or give them
>a slight discount when they buy quite a bit.
>How do you other potters handle customers looking for bargains? And do you
>offer rewards to long term customers?
>
>Cindy Eve
>Eve Pottery
>Great Falls, Montana
>
>______________________________________________________________________________
>Send postings to clayart@lsv.ceramics.org
>
>You may look at the archives for the list or change your subscription
>settings from http://www.ceramics.org/clayart/
>
>Moderator of the list is Mel Jacobson who may be reached at melpots@pclink.com.
>
>
>

Kathi LeSueur on sat 19 jun 04


When considering whether or not to give a requested discount for a
customer, put yourself in the place of the person who just bought
something from you at full price. They are still within earshot as you
say, "sure, I'll give you a better price". That customer feels like a
chump. They didn't have the sense to ask for a discount. And they feel
taken because, clearly, they were overcharged. Not a good lesson to
provide your buyer.

If your prices reflect a fair profit for your efforts you should not
yield to the temptation to lower the price just to make the sale. If
they really want it they'll buy it at full price.

Tell me would your accountant, doctor, or grocer give you a discount
just because you asked? Treat yourself as a professional.

The only exception I would make to this is the customer who is a long
time buyer, someone who has invested lots of dollars in your products.
And, usually they won't even ask. Just round the total of their purchase
down to an even number.

Kathi

Toni Smith on sat 19 jun 04


When your pricing is fair and on target for the work you do, you should not feel compelled to 'discount.' Its your livelihood and not time to play "Let's make a deal." There is nothing wrong with giving a good customer a little extra. Mel has suggested tucking in an extra mug, or a smaller item as a gift. Once you set the precedent of discounting, you may live to regret it. It will be expected of you. And for some people, its never enough. To me that just seems much too complicated. The price is the price and with the little gift idea, you remain in control of your inventory and your booth/shop. You are still respecting the customer, and in the long run, they should respect your policy. Good sales to you. Toni Smith in Ohio

ASHPOTS@AOL.COM on sat 19 jun 04


Most of the time i say NOOOOOOO!!!! Pots dont get ruined by sitting in boxes.
Some times if a customer is buying a bunch of stuff i will give 10% if they
ask..It would have to be more than $300... If a customer has been buying my
work for years and they spend lots of bucks i give them a discount. I have a
bunch of people that buy most of their X-mas gifts from me .. I really like seeing
them. I give them a discount
But at a show and some one is buying a mug, no discount,, one platter , no
discount

Mark

Ilene Mahler on sat 19 jun 04


mark do you have any mugs that I can purchase ,since you make the Best..I
need more...Ilene
----- Original Message -----
From:
To:
Sent: Saturday, June 19, 2004 7:08 AM
Subject: Re: price negotiation


> Most of the time i say NOOOOOOO!!!! Pots dont get ruined by sitting in
boxes.
> Some times if a customer is buying a bunch of stuff i will give 10% if
they
> ask..It would have to be more than $300... If a customer has been buying
my
> work for years and they spend lots of bucks i give them a discount. I have
a
> bunch of people that buy most of their X-mas gifts from me .. I really
like seeing
> them. I give them a discount
> But at a show and some one is buying a mug, no discount,, one platter , no
> discount
>
> Mark
>
>
____________________________________________________________________________
__
> Send postings to clayart@lsv.ceramics.org
>
> You may look at the archives for the list or change your subscription
> settings from http://www.ceramics.org/clayart/
>
> Moderator of the list is Mel Jacobson who may be reached at
melpots@pclink.com.

Jeanette Harris on sat 19 jun 04


Discounting your work is like discounting yourself.



In the consumer marketplace, pricing scales go like this:

New idea, new product, original work, top-of-the line, one of a kind
= Exclusivity (Think I Magnum, Abercrombe & Fitch, Desinger Jewelry)

Multiples, mass produced, manufactured = Broader market (Sears,
Pennys, Target)

Perpetual one-day only sale, Going out of Business, Thrift shop =
Discounted (Salvation Army, Goodwill)


The reason things are discounted in the retail market is because the
original stock was marked up enough to cover the cost + profit in the
first selling phase. The residue is sold at a discount to recoup more
of the original cost and to make room for more stock.

So, where do you want to be?

Of course, you want to be selling your work. But if you do a show
and pay the entry fee, work it for 2-3 days, consider your expenses
for being there and the equipment you have to have to participate,
you may already have given the promoters a commission of 50% up to
100% or more--especially if it is a really bum show!
--
Jeanette Harris
in Poulsbo WA

Jeanette Harris on sat 19 jun 04


>Toni Smith said


>It will be expected of you. And for some people, its never enough.


Makes me think of the Bruce Baker tape on selling. When someone
complains that the price is too much, a good answer is "Some things
are not for everyone."


just google "Be a Dynamic Seller"
--
Jeanette Harris
in Poulsbo WA

Donn Buchfinck on sun 20 jun 04


I wanted to touch on this price setting concept.
I think most people go about setting prices all wrong,
don't get me wrong I used to set my prices high.
It is important to decide what is important to you.

I share a studio with a production potter, in the beginning I looked down on
what he made, rutile blue glazes and stoneware pots. But as much as I looked
down on what he made there was a realization growing in my mind, and it took
quite awhile for it to come forward. This guy makes lots of pots, I mean 7
thousand pounds of clay worth of pots a year, and they all go away, he makes them
he fires them they get boxed up and they go away.
Let me repeat this again.

EVERYTHING THIS POTTER MAKES IS SOLD, IT GOES AWAY. HE PAYS ALL HIS BILLS.

And I don't mean consignment or a little at a time, but it all just goes
away, you almost think he really doesn't make anything, because seems to be always
working on similar stuff.
This is what I noticed and gotten from conversations with this guy.

He knows what he wants to make.
He knows his market. He is not making things he wished would sell.

He knows what he wants to be doing and what he wants to get out of the
experience.
Meaning, he wants to be making pottery.

And here it is, the big concept change.

It's not about the profit margin, it's about items sold.

You have to make a profit, he isn't an airline company that can still be in
business while operating in the red.
But he knows he wants to make pottery, and to be able to do what he wants he
has to price them to move.
How about this, do you have a second sale? What are the prices for those
pots? What if you priced all your pots at those prices? But still had some profit.
Wouldn't you be able to make more pots, that is what you want to be doing,
right?

If you price your work high, sell only a few pieces, you could price yourself
out of the ability to make pots.

At the begining of the month at a car dealership, the people sit down and
talk about last month, they don't talk about how much money was made, they talk
about how many units were sold. because the more units they sell the more they
are alloted to sell.

Next time you have a sale, price your stuff at second sale prices, and watch
the stuff walk away, you then get to go back to your studio and make more
stuff. Take your 20 - 40 dollar mug and price it a 9 dollars. Don't give me crap
about this, I can fill a whole level of my gas kiln with mugs, I can get at
least 30 mugs on a level 30x9= 270 dollars, that pays for the firing and the
materials for the rest of the pots in that kiln I bet.

You have to dump the ego out. Ego is great, but it doesn't pay the bills. Let
me try it, I will call up PG&E, hi, well I can't pay this month but I'm Donn
B. I'm a potter, I'm in books, national shows, collections. There still going
to turn my power off.
Think about what you want to be doing and then make the adjustments so you
can do what you want.

Donn Buchfinck
Oakland CA.

Lois Ruben Aronow on sun 20 jun 04


I rarely get hagglers. However, if someone buys several pieces, I will
lower the price on the total (round out, actually) a little as a "thank you"
gesture.

As far as long term customer, there is one woman who has been coming to my
every studio sale for 5 years. She was one of my first customers when I
started selling my work as a joke off my stoop. She even came looking for
me after I switched studios. She loves seconds. LOVES them, and not just
for their reduced price. She really enjoys what I see are flaws. He
daughter-in-law bought her a first once, and she snuck it back to me, asking
if she could exchange it for a bunch of seconds. Anyhow, I'll usually only
charge her for one piece, and give her some stuff for free. To me they are
seconds - I'm glad to see them going and making a few bucks is a bonus. And
I'm so appreciative of seeing Naomi twice a year, cash in hand, that I'm
delighted to be able to say thank you with my pots. We both win.




* * * * * * *
Lois Ruben Aronow
Modern Porcelain & Tableware-Updated for Spring 2004!

www.loisaronow.com