retail price question

[calabrese55]

Would anyone care to venture what a retail price for this pipe would be in the kind of stores that sell this kind of product.
there are a bunch of "Tobbacco stores" the have exploded in my area . I am talking with a new shop owner who has experience with the products.
he is interested in acrylic turns only . I have quoted $32.00 ea in small quantities he was thinking more like $20.00 ea but that isn't going to happen.

the kit from Penn State in brass is $12.95 plus a $1.35 blank before shipping, (I can build two pipes from one 5 inch blank at @ $2.75 ea blank. )
Any thoughts , experience , comments etc appresiated
Thanks
NOTE THE PICTURE HERE IS NOT ONE OF MY PRODUCTS BUT REPRESENTS THE TYPE OF PIPE I WOULD SUPPLY

calabrese55


A

 

[jttheclockman]

How about $27. in the middle.

 

[keithbyrd]

how much time do you have in it? you have minimum of 15.68 in costs not counting time and other expenses. Probably takes 30 min to make - so at $32 you have $16 to cover all your expenses, time, cost to deliver etc. I wouldn't do it for less that $45!

 

[Darios]

I wouldn't do it for less that $45!

I don't think I could even swing that for that myself. At mats+labor+consumables+shipping+percentage loss to problems I'm thinking cost alone comes to about $40-$45. And I know I undervalue my labor.

calabrese55 - I'd say don't go for the low end. You will be competing with mass manufacturing who can afford to invest on machines in order to crank out 100000 units with a less than 0.05% failure rate in order to wholesale at $15 a piece so that the retailer can sell at $40.

If it were me, I would target the 'custom' aspect that we can do. See if the owner thinks that specialty (cough not-bespoke) turns will be able to sell in his store in the $90-$150 range. (for 45 to 75 for you) Check to see what his/her store already has and where you might be able to offer a different item that's a bit more custom than what's already there - things like different patterns, custom label cast (if you are set for that), exotic woods (if they can handle the heat), custom regional things like the official bird of the Finger Lakes - the mosquito, or maybe even just set up a sign/form that says "can't see something that works perfect for you, we do custom work with a local turner who can find the right color just for you" or something like that.

 

[Hippie3180]

Seems like you are only considering cost of goods and not things like incidentals such as sanding materials, paper towels, ca etc. You'll need to add in for those things -+ your labor. There are several ways to come to a retail pricing, choose one you feel most comfortable with, but make sure you are including all your costs including your consumables.

 

[jttheclockman]

My question would be what are these things going for that are mass produced to start with. I think you people are over valueing something as simple as this. There is so little work and material involved in this from what I see. I see on etsy these same pipes in all brass for $13. What are you selling pens for? $35 to $40- which is twice the work and twice the material. Yes he will mark them up but that is not your concern. If you can live with the price you give them and willing to expand the line you at some later date increase your price. This is the age old question about selling, what is a fair price? Try to be reasonable and not make that pot of gold on one item. Good luck. One thing too you have to remember is when people talk materials and shipping costs and things like that. That is all well and good but you are not using the right formula for that because you buy in bulk. You can not charge someone the same price as you paid because you spread that over many items. That is why I never use formulas. Time wise is another. One day you maybe in the mood to crank them out the next it is a chore because you broke one or some other reason. Averages are tough to decide. I never had luck with formulas. Just go with feel and history to decide pricing. Has worked for me. Also ask yourself is this something you want to do for future and not just a one time thing in case it does take off.

 

[egnald]

The president of the company I retired from used to get mad at us for underpricing products. He used to say, "how do you know you couldn't get a hundred bucks for one". His philosophy was that we should loose three sales because of price before coming up with a number. But, I don't sell stuff, so what would I know.

Just make sure you are happy with what you ask for them.

Dave

 

[wouldentu2?]

How much are they spending on "tobacco" ?

 

[RGABEL]

If you (and the store) are willing you could offer 2 prices. One if they buy it outright (lower price) and one if they take it on consignment. I have done this a few times and it worked out for both of us. In my case the store does a lower markup on consignment as they do not have any "real" costs for carrying the inventory. If they but it outright they put more markup on it as they now have a carrying cost associated with it. I am OK with the lower price if they buy it outright as it is immediate cash flow.

 

[Woodchipper]

This is a departure from pens but an item that is sold in specialty shops. FWIW, I would never sell on consignment. How does one keep track of inventory? Had a chance to sell on consignment. I would wonder what was sold and shop lifted?