Here it comes!

[John Richards]

Just an FYI to all Grumbler's...just recieved word this week that effective January 1, 2002 there will be a Crescent and a Hunt/Seal price increase. More to follow I'm sure.

John

[Framing Goddess]

Thanks for the heads-up, John.
Gotta go-- time to raise my prices again...!
-e the fg

[tgfu408]

well gosh, folks, doesn't this happen every year? Crescent, Bainbridge, LJ, Roma and anyone else who has anybusiness sense?

Can't raise 'em during Christmas, so they gotta do it first of year.

makes me glad I got Lifesaver. One click of the mouse and prices are raised.



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Michael LeCompte CPF

[Dermot]

In a defltionary economy why are these compamies/business raising prices, have we all just become accustomed to this sort of action every year.

[John Richards]

Michael:

You're right, it does happen every year...but we distributors usually don't get a 30 day warning so we can let our customer's know with what I would consider fair lead time. Every time there is a price increase, especially in commodities, we put the word out as-soon-as-we know, yet for months afterward we get people who call and complain because they didn't know the price went up.

John

[R Markoff]

Why wait for the price increase in January to raise your prices?

If you know you will HAVE to raise prices in January, why not do it NOW when price objections are significantly less because customers want to get their framing done for the holidays and have less time to shop and compare prices?

Remember - your income is limited to the capacity of your shop times the price you charge per picture. If you frame 8 pictures per day, 5 days per week for 50 weeks per year and only raised your prices by $1.00 per picture, you would realize a revenue increase of $2,000!

[Susan May]

It is kind of hard to raise prices when you don't know how much of a change there will be. 'Sides, This is a good way to boost sales... You can tell your customers that there will be a price increase in January, and that they ought to get their framing done now, before the price hike.

Sue

[R Markoff]

<BLOCKQUOTE>quote:</font><HR>Originally posted by Susan May:
It is kind of hard to raise prices when you don't know how much of a change there will be. 'Sides, This is a good way to boost sales... You can tell your customers that there will be a price increase in January, and that they ought to get their framing done now, before the price hike.

Sue<HR></BLOCKQUOTE>

Sue (and others) - I don't understand your logic, and with no offense intended, I bet the prices you are currently charging have room for an overall price increase of at least a dollar or two per picture, without meeting any resistance.

Why not raise prices an incremental amount now (and MAKE MORE MONEY NOW) when customers are less resistant to spend AND use the pending price increase to further motivate them to buy now? What are you afraid of?

When I teach (and I have been all across the United States and Canada again this year) I survey my classes and ask, "How many of your customers will fight you over a dollar difference in your prices." Hardly anyone admitted that they felt a dollar would make or break a sale. But a dollar can make a HUGH difference in your bottom line. A dollar per picture times eight pictures per day times 50 weeks per year is $2,000. That's an IRA for a self employed individual, enough to go to a trade show or two, or the vacation you say you can't afford.

If your customers won't fight you for a dollar difference, would't you rather have it in YOUR pocket?

How much could/would vendors raise matboard prices? Even if it is 50 cents per board (and that would be a HUGE increase as a percentage of the original wholesale price), the difference isn't significant enough for you to worry about whether or not you have raised your prices "enough". An incremental price increase NOW will mean more money in your pocket, and the "increase" or adjustment made when the true price increase is announced could be smaller and more easily accepted.

[This message has been edited by R Markoff (edited November 28, 2001).]

[Bob Carter]

Rob is absolutely correct; there is no time like the present. When people are pushing you for more work before Christmas, you should be charging as much as you can. We all will be putting in more hours; doing more work. Shouldn't we be compensated?

Sue brings up a very interesting point on how much; especially since you don't know what the price increase should be. I know this is a broken record, but your cost has only a small bearing on how much. In a simple answer:As much as the market will bear.And how do you know this? Well, that's what being a good operator is all about.

A lot of people argue you shouldn't let your competition set your prices. I agree (although if my competitor is getting more than me, I'm going up). But I'm sure not going to let my distributor set my prices, either. And if every increase is based on how much more you pay, you may not be getting ahead.

Remember my advice to Cheryl when I suggested she go up a dollar on each major component? She tells me the first weekend, she picked up almost $100 extra, with no increase in cost.

Pricing is dynamic-always changing. Do your best to stay ahead of cost increases. There are too many silent increases that you just never plan.

But, hey, I'm just a simple old retailer trying to put my education to work. I'm sure there are many, many better ideas than mine.