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The Pricing Dilemma
You have an item that has been a great seller for you for years that costs $10.00, and you sold it for $19.99. The manufacturer just increased the price to $11.00.
Many of you are facing this dilemma that is affecting much that is arriving at your store. In this case, do you double the price and sell it for $21.99? Do you try to make extra margin and raise it to $24.99? Do you make less margin but sell more product, and keep it at $19.99?
Thus far there has been no clear answer. However there seems to be the feeling from some, that consumers are not as focused on those special price points. That shopping online with prices like $21.43, have made it that retailers could now charge $21.99, where in years earlier they could not. Online shopping has essentially made $9.99, $14.99, $19.99, etc. irrelevant.
On the other side, is the sentiment of - "If I sell 100 at $19.99, and make $9.00 off each one, I've cleared $900. If I increase my price to $21.99, and my sales drop to just 50, I've only made $550. I'd much rather take a shorter margin, and overall be more profitable.
The key point to making the shorter margin work is getting free freight. There is definitely not enough room for you to pay freight and selling product for less than keystone.
Will consumers accept new pricing of $21.99, $22.99, $23.99? This Fall we will find out.
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Catherine Coury 732-841-9372 catherinecoury2@hotmail.com
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Sandy Ruben 843-696-4464 sandyrubeninfo@gmail.com
Tom Darnell 615-945-8939 darnelltoys@gmail.com
Valerie Bernstein 678-595-3062 valeriebernstein1@gmail.com