Re: Pricing elasticity and over-keystone retail
Posted by John on January 20, 2003 at 10:21:41:
In Reply to: Pricing elasticity and over-keystone retail posted by RGB on January 20, 2003 at 08:17:01:
Clear as mud, right?
My example -- and, yes, it is nothing more than an example -- shows what YOU have the power to do in controlling the price of your work in the galleries. Your pricing strategy directly impacts the retail price whether a particular gallery uses 2.0, 2.3 or 2.7 as a markup. A lower price from you will always help sell your work regardless of the retail markup, which is outside your control.
Gallery pricing strategies are a separate issue, and I'm not certain that I've studied them sufficiently to make any judgments. Suffice it to say that keystone has gone the way of the dinosaurs. Questions of perceived value and intrinsic worth are in play here, as well as plain old salesmanship, customer service and the other dimensions of pricing with respect to individual galleries. Bottom line is that you shouldn't worry too much about how much they are making, as long as you're making your money.
And some makers don't want to chase the volume/price/cost matrix to maximize their profits. Maybe they want to put a higher price on their work so that they don't have to make as many craft widgets to produce a given lifestyle.
And just to make you crazy -- I have seen some of my own work start selling more briskly after raising the price. I guess that's the perceived value issue at work -- or maybe just more effective advertising.
So, ALL THINGS BEING EQUAL, we all have freedom of choice in this industry to impact the saleability of the work -- you as the maker, the gallery owner and the consumer. You are only a small part in the distrubution chain, but your decisions influence everyone else.
Onward through the fog!