(CLOSED) How often do you adjust your prices? MARCH 2005 SURVEY DISCUSSION

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Mike Labbe

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MARCH 2005 POLL & DISCUSSION - HOW OFTEN DO YOU EVALUATE AND ADJUST YOUR RETAIL PRICING - AND WHY?

Your input and discussion are greatly appreciated!



RESULTS from previous surveys: www.custompictureframing.com/poll_results.htm

Mike

Note: your poll answers are confidential. (discussion is not) This is strictly for entertainment and discussion purposes and shouldn't be used as a primary business planning tool.

[ 03-03-2005, 04:33 PM: Message edited by: Mike-L@GTP ]
 
Hmmmm, for moulding, I let the POS update based on cost everytime there is a price change. But, I check markup rates and such every six months or so.

For glass and mats I evaluate quarterly to six months or when I get a notice that the cost is changing.

If a customer complains or I see a competitor's price that is very different from mine, I evaluate the differences or the complaint and may or may not adjust.

For mounting and specialty items, I evaluate if I "feel" a little faster, or have a PITA problem. (very random)

If I notice my COGs % is varying from what I expect, I try to "get to the bottom of it" and adjust prices if that is warranted. This has happened a couple of times in two and a half years.

I said six months on your survey.
 
I said, “other” on the survey.

I don’t have a POS so I have to adjust my price increases manually through a printed spreadsheet. Since different manufacturers/distributors have their own peculiar “season” for increases, I may end up adjusting prices monthly (Decor just jacked up theirs on March 1), or I may not have to go through the process for 8 months or so.

To keep or increase my slice of the pie, it is not uncommon for me to give myself a dollar or two raise each time the wholesale costs go up. This seems to make up for the PITA of having to go through the whole process of printing new spreadsheets and making new labels for the corners.

I never lower my prices just ‘cause I get a temporary “bargain” from a supplier.
 
Question #1: Other Please Explain
POS UPDATES ------I UPDATES
 
Price changes are both done automatically (Lifesaver) to keep up with price increases, and by management decision to adjust for changes I make in my market position. The first is obvious and is done by changing my costs without adjusting markups. The second is based on competition in conjunction with my profit management and is done by changing my markups on cost. Whenever I change markups on cost, I do it because I recognize I have offered a different mix of service that requires a change in my margin. (For example when I started including delivery on any order over $350.00 I needed to have more margin to stay profitable, but the extra service sets me apart from other framers, and I can get the extra margin without loosing customers.) I would recommend never changing your price by more than 5% a year. If you need to have a larger increase, do it in steps.
 
What a pleasure it is to read Kevin's thoughtful responses
 
Kevin,

So what do you do when LJ raises the bar twice in one year 7% and 4.5%? Take it in the shorts; or just order more longs (length)?

I hear what you saying about large jumps, but I also have been watching a price creep on moulding that is only obvious when you print out any changes to prices that you download monthly......

It's why we are now watching everybody closer these days.
 
that is a good point to consider about price jumps, seems that has been a concern in many industries.

how about other moulding vendors. how often is the market seeing price changes?

thanks for your insights.

best regards,

dave moen
 
So, where has this poll been moved to?
 
Good question. I didn't move it and I can't find it.

:(

Mike
 
Due to circumstances beyond our control, all of your voting feedback from the past 24 hours has been lost and sent off to cyberspace. (about 50 votes)

Unfortunately, this means that participants will have to register their opinion AGAIN. I think this subject has potential for a great discussion, and the good news is that some of your suggestions have been incorporated into the replacement poll.

I'd like to apologize for the inconvenience. We're aware of the cause, and monitoring to make sure it doesn't happen again.

This thread will be closed and your comments will be moved automatically.

If you voted in the past 24 hours, please re-register your opinion at the new link.

Once again, sorry for any inconvenience.

Mike
Co-Moderator

LINK TO NEW POLL: CLICK HERE FOR THE REPLACEMENT
 
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