Pricing products

Just wondering what the go is with pricing products.. and pricing to match the current market.

I feel like our soaps are expensive, but DH doesn't want to lower the price, because it's the 'going' price for handmade soaps, and it'll cheapen our brand if we sell cheaper.

How do you guys feel about something like that? If we sold our soaps cheaper - would you think less of the product? Oh - and please don't say no just so you get cheaper soaps! LOL. I'm curious about just how much "you get what you pay for" applies to things.

Especially when majority of our return customers are people with problem skin, are they used to paying exhorbitant prices for 'specialty' products, so would think a cheap bar of soap wouldn't work for them?

Any opinions are very welcome :)

Liz - i know how much time and effort these soaps take you, and i think they are a great price (and if i wasnt living off stuff all money atm i would've already order some more of your beautiful soaps!!)

I think the price is fine, but if you feel they are affecting sales, maybe lower them, and see if sales pick up at all??

I wouldnt think any less of the product if it were cheaper, cheap doesnt always mean nasty :) And i people see its cheap and want to try first, you have samples... that will bring them back and happy to pay whatever!!

Good luck :D

ETA from memory, the soaps at the Body Shop are about $4 a bar, and they are NOWHERE near as luxurious as yours are... :)

I don't think that cheaper price necessarily relates to a cheap and nasty product.
There are different markets and you have got to find your niche...

You can charge high end price - with limited customers who are prepared to pay for the quality.
You can charge mid price (or slightly cheaper than 'competition') - and increase customers who will recommend the product because they discover quality products at reasonable prices.
Or you can charge cheap price (ie: bargain basement) that attracts lots of customers - thus high turnover - who then purchase more, and recommend more when they realise that it is such good quality.

I really don't think that a cheaper price would lessen the image of quality.

I think $5.50 is okay... but when you buy 4 blocks of soap, with postage added... it could look expensive. And if you feel it is a little expensive... then test it by lowering the price. You can always increase the price when you have increased your customer base.

I see you have soap bundles... but I would recommend you lower those prices a little more.... and maybe increase the bundle sizes - 4 pack, 6 pack, 10 pack... With a better discount the more they buy. And on your "soaps" page - put a link there to promote the "soap bundles".

I have a skin care range which I believe is really reasonably priced ($42-$43 for a moisturiser). This product is imported from Israel, and is one of the top selling products in the world (although not really well known in Australia). A lot of people try the product... then fall in love with it, and recommend their friends. As a therapist, I cannot justify people who pay $80-$100+ for a face cream that doesn't do much. I can understand that $10-$20 are pretty basic - and nasty.... but I love the fact that we have a quality, effective product that does not cost the earth.

I definately would not think "less" of your soaps if you decided to make them cheaper.

If your husband is adament not to lower prices - then you have to think of ways to increase sales in other ways.... referral letters to customers (get a free soap with every referral), or value add... Spend $xxx and receive a free gift (could be sample soaps, or a free bar of soap).

hmm thanks guys. It's a tough one. The prices on our temporary store actually incorporate postage, so there's no postage on top atm. Once I launch the proper store the soaps will probably come down to about $4.40 ea + postage.

Jodie - I plan on making more bundles, plus putting together little gift baskets etc.. I just don't seem to have the time to do ANYTHING at the moment! and DH hasn't made soap in MONTHS so there's no variety at the moment.

I also plan on sticking in samples with purchases - not necessarily advertising that fact tho.. but I know we have always gone back and bought whatever sample was sent to us with a purchase LOL.

Oh - and thanks Simone :) Glad you like the soap! I've been reading about your situation, and totally understand not spending money on soap :)

Liz, unfortunately some consumers do see high price as equating to better quality, I think its depends on the product though.

You are charging at the going rate, and really as a consumer thats what I would expect to pay. Slightly more or less is fine, but when I see something that is significantly higher or lower than the "going rate" I do tend to wonder.

How about a "Buy one, get the second one half price" special for a limited time. That way you still dont cheapen the product but it gives people a chance to fall in love with your product and increase your chances of return business.

I think that for hand-made products people do expect to pay a bit more.
I used to have this great graph in my office of the sales volume that you needed to generate in %'s in order to make a price drop profitable - generally you do need to increase sales significantly to justify a reduction in your price point so if your customers are happy with the price it might be best to stick to it.
Maybe you could have a promo combined with market research where if a person fills out a survey they get a discount on thier order. That way you might get to know a little more about your customers expectations and so on.

Liz,
I will definately be back soon to buy some soap from you. My DD won't stop hassling me about getting some more for her LOL!

Nic

heh Theresa - Hope he didn't eat it after a few beers at xmas! heheh

Thanks guys. I'll leave things as they are for now (I just don't have the time at the moment) and will put the soaps back down to their original prices + delivery when I get the new store up. Theresa - I'm actually very jealous that you found time to get your stock made and your store up! hehe. You're a wonder woman! And your bub is a month younger than mine! Gosh - really - where's my excuse? LOL.

hehe - you moved house too! With 2 kids, and dealing with their food issues too.

Altho - if I added up my time spent on BB - that could be time put to better use getting the new site up huh. LOL. Well, we'll be making some soap soon, coz DH is running out of his. He's not allowed to touch my wrapped soaps ready for sale. LOL.

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I guess running out of soap is a sure fire way to get him into action!

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if it was my DH he'd probably just place an order rofl......

yeah - well my DH does buy some shampoo bars from another handmade soap place LOL.