raising prices- is it worth it?

[Gary Hair]

For what it's worth, our customer came in today to pick up the samples. They didn't even want to see the lower end sample. They wanted 200 pieces, saw it, immediately asked if they could increase the quantity to 250. So 250 at $18 each.

That's a great win for you and your customer! They are getting a better product at a better price than they planned, and you have a bigger order - much better this way than simply raising the price of a $12 item to match their budget. Imagine how they would feel if they somehow found out that you had charged them $19.50 for a $12 item? Remember, this forum is viewable to the public and a simple search could find this thread...

[John K Jordan]

I make very few things for sale but I recently went up from $75 to $300 for one of the things I do sell. I have had no complaints, however these are things that don't usually go to repeat customers. I'm afraid I trained earlier customers into thinking these weren't worth much.

Most people have already judged the value in their mind by the time they decide they are interested. They will gladly pay less but have no problem with paying more. Note that the quality and uniqueness of the piece makes all the difference, exquisite goes a long way.

Reminds me of the time I was asked to do some 3D modeling for an architecture firm. After looking at the requirements I was prepared to do it for $1000 when I asked if they had a budget in mind. "We can't pay more than $8000 for this." Yikes.

JKJ

[Walt Langhans]

I call it "noise" and it wiped out a lot of the "noise" and I believe it made us more profitable.

Yup... ^That. 100% solid advice.