Do you ever lower your prices over time?

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Texatdurango

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Ever lower your pen prices just to get rid of the pens because you're tired of seeing them in a pen cases?

In the past, Sierra style pens along with the Jr Statesman pens were my favorite pens to make. At one point I must have had well over two hundred Sierras and close to 100 Jr Statesmen pens ready to go. Since I all but stopped making kit pens over the past few years those numbers have dwindled drastically since I never replaced what I sold and now I have only a couple dozen Sierras and around 40 Jr Statesmen pens left.

My wife is doing a craft show saturday and I will help her setup and tear down so since I'm there I'm thinking of taking some of these pens and just selling them for little more than I have invested in them and chalk up the labor to having a good time in the shop.

So, does anyone else have the same feelings, ever get tired of seeing the same ole pens every time you go through the pen cases?
 
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I understand what you mean, George, but I keep my prices the same. But with today's kit prices, my existing stock is under priced anyway. I have some that I made 6 and 7 years ago and when I get tired of looking at a particular pen, I use it as a graduation present for one of my nieces, or nephews.
 
We lower prices frequently. When penmaking is approached as a business, stale inventory reduces cash flow. The second most frequent cause of small business failure is inelasticity of cash flow. The most frequent cause of small business failure being over extending credit to customers. Since our model is full payment due on or before delivery, extending credit is not a problem for us.

When we have products that have been in inventory for more than six months, we start looking at the "whys". If is just "butt ugly" or last years colors, we'll frequently invest more money and CHANGE the pen. If we can't really identify the "whys", the product goes to the pen adoption cage at substantially reduced pricing. WE HAVE TO DO THIS, as cash flow for a small business is everything. Borrowing "cash flow" ends up raising the prices of ALL PRODUCTS and puts even more pressure on the business, as we have now added "debt service" to the mix.

Some people reading this will say "how can pen makers over extend credit to customers?" The answer here is one word- CONSIGNMENT. With consignment, you are loaning your customers your money to profit from selling your product. Consignment shops have no "skin in the game" and are borrowing your money, INTEREST FREE. Consignment may also be the greatest contributor to stale inventory.

My long assed answer to your simple question is "yes, we sell 'em at greatly reduced prices. Because it is cheaper than borrowing cash flow, or getting beat up on consignment deals". YMMV.

Respectfully submitted.
 
My suggestion for the craft show would be to pick the nicest ones and leave them at your retail price, then off to the side somewhere show the "discount center".

This accomplishes 2 goals. If you decide to do this on a more frequent basis, the shoppers get an idea of your regular prices. The second thing it does is emphasize that the discounted pens are a great "deal". If you DON'T do this and go back to other crafts shows, people get the idea that your "give away pens" are your usual prices.

It's HARD to go back to regular pricing in a hard economy, unless folks realize that these are "one time only".
 
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I know I've lowered all my prices considerably just to start moving inventory on my website. At this point I'm trying to cover materials costs and a few bucks. :( Still not moving any yet.
 
PenMan1 said:
My suggestion for the craft show would be to pick the nicest ones and leave them at your retail price, then off to the side somewhere show the "discount center".

This accomplishes 2 goals. If you decide to do this on a more frequent basis, the shoppers get an idea of your regular prices. The second thing it does is emphasize that the discounted pens are a great "deal". If you DON'T do this and go back to other crafts shows, people get the idea that your "give away pens" are your usual prices.

It's HARD to go back to regular pricing in a hard economy, unless folks realize that these are "one time only".
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What answer do you give the potential or real customer when they ask why these are cheaper than those especially if they are the same stye and same medium (wood, acrylic etc.)?
 
jaywood1207 said:
What answer do you give the potential or real customer when they ask why these are cheaper than those especially if they are the same stye and same medium (wood, acrylic etc.)?
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I tell them very honestly that they are pens that I've had for awhile and that I want to keep stock moving. I also like to offer specials that might attract customers that might not otherwise BE customers.
I was pleasantly surprised recently when a customer realized a couple of my cigar pens were a bargain (priced with my 7mm pens). He got a decent pen, I got a sale and a potential repeat customer, and still made a little on a pen I have had for a couple years.
 
I've lowered prices and offered bonuses for sales, as long as the cost of materials is covered on everything and there's still some profit left to be had. It's not too hard to cover material cost, it's getting paid for the time I invested that gets tough. It all depends on what the market will bear. I have dozens and dozens of Slims I have yet to sell, and I have used all of my newer turns to upgrade the bling factor in the binder. I also agree with having some higher priced pens and then some less expensive options to both steer customers to what you need to sell and potentially cater to two different markets. I've been left holding the bag because there were no higher end pens in the stuff I had on hand at the time before. Seemed like a bizarro-universe situation.
 
I rarely cut prices on pens, if I do, I will do it on a pen that has been in my inventory for too long. I usually give this low price (maybe free) to a young person who admires the pens but can't get the parents to spring for it. I insist they write me a letter telling me how they like the pen. This gets them interested in writing and allows them to appreciate them. People who ask for a better price like I am running a garage sale, get no discount.
 
We do a different show nearly every weekend, we change prices nearly every weekend. Price changes are made based on the type of show and the market area.

But your question is about selling slow moving inventory at lower prices, we do that as well. If a pen has been out of the transport cases and back in 10-15 times (six months) it is time to either dis-assemble and re-purpose the components, or save it for the low end show. One of the shows we do every year is a general market craft show, we go there and sell cheap pens, the good stuff doesn't come out of the cases.
 
I don't like to drop prices.
If a pen has been around a long, long time it may become one of my users.
I feel if you start making a "bargain" section in your display you just lower the standards you've tried to establish. The only shows that really work for me are the art type shows where you are classed as an artisan, not the craft shows where people just start out looking for bargains.
Eventually someone will come along that wants "that" pen.
If a pen is "butt ugly" it doesn't make my display to start with
 
Chasper said:
We do a different show nearly every weekend, we change prices nearly every weekend. Price changes are made based on the type of show and the market area.

But your question is about selling slow moving inventory at lower prices, we do that as well. If a pen has been out of the transport cases and back in 10-15 times (six months) it is time to either dis-assemble and re-purpose the components, or save it for the low end show. One of the shows we do every year is a general market craft show, we go there and sell cheap pens, the good stuff doesn't come out of the cases.
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Chasper I agree with this strategy. If you are doing different "classes" of shows I think this works.
 
George Andy and I agree 90% of the time on merchandising and in principle we agree on this but in practice not so much. In your case it's OK as your not doing a venue you normally do but for those of you who are I don't recommend having a bargain basement on your table. This lowers the the quality of ever thing on your table, can your customer justify paying $$$$ for a Jr. Statesman when on the same table are other Jr. Statesman's for only $$, you just gave him bargaining power. For most of you I would disassemble during your off season and redo and actually increase your price when your new season rolls around ( I used to increase my prices every year by 5 to 10% because of inflation) You've accomplished two things, you've had to buy less component sets for the new season and you've freshened your inventory.
 
I do mostly "art" shows at this point, but I have one two day church show in a great neighborhood at the very end of the holiday season...it's a great place for me to sell "other stuff" that I make when I'm not feeling like making pens (peppermills, kaleidoscopes, pizza wheels). I do not take my high end pens, but will take the lower end ones (vertex, Jrs, sierra type) that have not moved and put them out as "end of season clearance" items, discounted by 20-50% vs art show prices. I always sell quite a few, I'm still happy to have made a decent margin on them and don't have to pack them up for the winter.
 
A few thoughts:
- Marketing items ... give them away to potential clients in high places.
- A thank you gift for your doctor, lawyer, accountant, dentist or anyone else that could become a new customer.
- Gifts or sell them at cost to family and friends (post them on Facebook)
- Have a 'One Time Only Inventory Blow out Sale' noting they are significantly below cost to clear out slow moving inventory. (I wouldn't do this at one of your normal venues)
- Put them on eBay for cost +20% to cover the ebay fees and such.

AK
 
Roy:
We actually agree on this also. I HATE having a "discount center" and we only do it when we need cash flow AND NEVER at high end shows. I couldn't agree with you more that discounts reduce your bargains power at shows.

We been fortunate not to have too many mutts, and you and I see "eye to eye" on repurposing hardware. When we do display the mutts, we have a cute "adoption center" and tell the customers the exact truth that they have just been in inventory too long.

If I had YOUR MONEY, I'd give the mutts to friends and family. But penmaking as a sole business doesn't afford us that luxury.

I'd LOVE a better idea to keep cash turning rather than tied up in old inventory.
 
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I couldn't lower my prices without actually giving money away with the pens. :biggrin: I only make pens as a hobby and so they get given away.

I do recycle them though. I often take my 'early' kit pens and strip them down and swap the blanks.

Another good topic George !!:wink:
 
PenMan1 said:
And by the way, I HATE PORK AND BEANS! But we sure eat a lot of them these days:)
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No that is some good eating. Mix in some sliced up stadium red hots, a couple slices of cooked bacon, some brown sugar, catsup and mustard. Thanks Andy I now have an idea for dinner. :biggrin:
 
If product isn't moving it's just money sitting on a shelf and isn't doing you any good. If by lowering the price you move product and free up that money to put into different product that will sell not only is that the smart move, it's the logical thing to do.
 
IPD_Mr said:
PenMan1 said:
And by the way, I HATE PORK AND BEANS! But we sure eat a lot of them these days:)
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No that is some good eating. Mix in some sliced up stadium red hots, a couple slices of cooked bacon, some brown sugar, catsup and mustard. Thanks Andy I now have an idea for dinner. :biggrin:
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Hey Tam, if you eat crud like that, then you won't see old age. :eek:
On second thoughts, carry on my friend !!:biggrin:

What is 'catsup' anyway?? Cat Supper?? :confused:

Apologies for corrupting your thread George !! :)
 
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skiprat said:
Hey Tam, if you eat crud like that, then you won't see old age. :eek:
On second thoughts, carry on my friend !!:biggrin:

I am sure you are not the only one that feels that way.

What is 'catsup' anyway?? Cat Supper?? :confused:

Apologies for corrupting your thread George !! :)
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Both Ketchup and Catsup are condiments usually made with ripened tomatoes. The term "ketchup" is more popular in most countries; "catsup" is used in some parts of southern U.S. The ingredients used - tomatoes, sugar, salt, vinegar, cinnamon etc. - are pretty much the same in both ketchup and catsup.



Oh George doesn't mind. I think he was just checkin to see if he would offend anybody by lowering some prices to move stale merchandise. He is kind of sensitive that way. :tongue:
 
Isn't using 'George' and 'sensitive' in the same sentence a bit of an oxymoron???:confused: I could be thinking of someone else though. Sorry George:biggrin:
 
Guys stop picking on George, he's really a nice sensitive............opps just saw you were talking about Butcher:rolleyes::biggrin:.
Andy only deep southernes from the swamps of Georgia know to put Mole Asses on beans. :eek:
 
OKLAHOMAN said:
Guys stop picking on George, he's really a nice sensitive............opps just saw you were talking about Butcher:rolleyes::biggrin:.
Andy only deep southernes from the swamps of Georgia know to put Mole Asses on beans. :eek:
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I'm confused....:confused: I thought beans CAME from Mole Asses???
 
Uh Oh............ I just went downstairs to round up all the old Sierras and the Jr Statesmen pens and you know what I found.... Some pretty decent pens! :eek:

I'm now having second thoughts about offering these at cost just to get rid of them and am considering taking some of the Jr Statesmen pens to the Dallas show in a few weeks.

After all, it's not like they were made from some ole 2x4 yellow pine cut-offs. There are some nice amboyna burl, dyed box elder burls, trustones, some beautiful Bethlehem olive wood and some really nice acrylics. I really only saw a few that would be considered plain jane wood blanks deserving of the bargain bin.

I think I'll set a table up like I used to with regular prices and see what happens.

Some of you guys have a keen eye, I AM sensitive! The feminine side of me has me where I can't even make up my mind! :biggrin:
 
skiprat said:
IPD_Mr said:
PenMan1 said:
And by the way, I HATE PORK AND BEANS! But we sure eat a lot of them these days:)
Click to expand...

No that is some good eating. Mix in some sliced up stadium red hots, a couple slices of cooked bacon, some brown sugar, catsup and mustard. Thanks Andy I now have an idea for dinner. :biggrin:
Click to expand...


Hey Tam, if you eat crud like that, then you won't see old age. :eek:
On second thoughts, carry on my friend !!:biggrin:

What is 'catsup' anyway?? Cat Supper?? :confused:

Apologies for corrupting your thread George !! :)
Click to expand...
If you were American rather than a Brit, I'd tell you "There ain't no difference" and it might also be called catchup and katsup, It is a tomato based condiment and typically has about the same ingredients whatever it's called.

My understanding is that ketchup in Great Britain is a totally different breed of cat :biggrin: that is, as typical for most British dishes (such as Mutton, Yorkshire Pudding, etc) inedible to anyone not born there.:tongue:
 
Texatdurango said:
Uh Oh............ I just went downstairs to round up all the old Sierras and the Jr Statesmen pens and you know what I found.... Some pretty decent pens! :eek:

I'm now having second thoughts about offering these at cost just to get rid of them and am considering taking some of the Jr Statesmen pens to the Dallas show in a few weeks.

After all, it's not like they were made from some ole 2x4 yellow pine cut-offs. There are some nice amboyna burl, dyed box elder burls, trustones, some beautiful Bethlehem olive wood and some really nice acrylics. I really only saw a few that would be considered plain jane wood blanks deserving of the bargain bin.

I think I'll set a table up like I used to with regular prices and see what happens.

Some of you guys have a keen eye, I AM sensitive! The feminine side of me has me where I can't even make up my mind! :biggrin:
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Ruh-Roh, in my best Scooby Do voice.

Guess I better up-scale my offerings. :eek:
 
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Smitty37 said:
skiprat said:
IPD_Mr said:
PenMan1 said:
And by the way, I HATE PORK AND BEANS! But we sure eat a lot of them these days:)
Click to expand...

No that is some good eating. Mix in some sliced up stadium red hots, a couple slices of cooked bacon, some brown sugar, catsup and mustard. Thanks Andy I now have an idea for dinner. :biggrin:
Click to expand...


Hey Tam, if you eat crud like that, then you won't see old age. :eek:
On second thoughts, carry on my friend !!:biggrin:

What is 'catsup' anyway?? Cat Supper?? :confused:

Apologies for corrupting your thread George !! :)
Click to expand...
If you were American rather than a Brit, I'd tell you "There ain't no difference" and it might also be called catchup and katsup, It is a tomato based condiment and typically has about the same ingredients whatever it's called.

My understanding is that ketchup in Great Britain is a totally different breed of cat :biggrin: that is, as typical for most British dishes (such as Mutton, Yorkshire Pudding, etc) inedible to anyone not born there.:tongue:
Click to expand...

Smitty,
We do have ketchup here, mostly in the fast food outlets but unfortunately catching on in the shops too. We have Tomato Sauce which is probably the same as Ketchup without the E numbers or the 1000yr shelf life.:biggrin::wink:

Mutton is extremely rare in the UK and I don't know why. I love it. It's infinitely more tasty than lamb. It is very popular in South Africa ( my old haunt ) and can't be beat on the good old barbie ( or braai, if you prefer :wink:)

Yorkshire pudding ( not actually a pudding ) is something of a dying art.:frown:
Again the supermarkets have taken over with these horrible pre-cooked pieces of airated cardboard. A Sunday roast isn't complete without the Yorkshire Pud. :biggrin:
 
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