Pricing


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Posted by Brian Hooey on October 31, 2001 at 14:29:11:

We price our work to what the market will bear. There is one price for retail and one price for wholesale. The two prices have no relationship to each other, other than each price is set to maximize the the profit for the supply/demand equation. The thing that makes this work is our policy of not competing with our galleries. We only hand out retail price lists to those people who see us at shows, and we don't do shows anywhere near our galleries. We get the standard e-mail from people on the who see us at galleries and we always send them back to the gallery. BTW- the prices change for almost every gallery- from $475 to $700 ($495, $550, $580, $599, $660, etc.)

For someone to buy retail from us, they need to tell us where they live and what show they saw us in. If they pass, they can buy direct.

I (finally) have run into a situation that doesn't fit our criteria for either. A guy e-mailed me wanting a piece he saw in a house that he was doing work for. The location is at least 800 miles from my nearest gallery. As I'm working out how to handle this situation (so it works this time and the next) I'm having questions about fair pricing laws (that are a distant memory from Business Law in college).

What I want to do is maximize our profit without creating a situation where we undermine our galleries. Right now, I'm considering charging a price of about $595.00 (which seems to be above the average) for a customer like this and keep the other prices where they are. Do you know if I would be breaking some kind of fair trade law by having two retail prices, based on whether you saw me at a retail show (and location) or not?

This probably sounds like a tangled web, but we have sold hundreds of pieces for years this way. This is the first time we've run into a situation like this.


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