How Do You Do Your Pricing?

[Gino]

 

[Johnny Best]

What's the rope on the shelf for, the customer to hang himself when he misses the dart board completetly or you give him one of bob's pricing algorithms or the "blow out of your butt" choice.

Nice little setup for pricing Gino.

 

[Gino]

The rope is used to close the deal.

 

[boxerbay]

I look at this shoes and watch and what they drive and price accordingly.

 

[shoresigns]

I think Amazon has this now for $6.95 in paperback edition. View attachment 127867

I really appreciate what you add to this community, Johnny Best.

 

[Create]

Heres a simple take on pricing... do what the franchise shops do.. they've got to keep their franchises in business to sell more franchises, so they have worked out the bugs in financials and pricing.. Most franchise disclosures I've seen state that their franchisees have a 25% or less cost of goods - some are 20%. So reversing that, total all your materials and multiply by 4 for a 25% COGS or 5 for 20%.

Fairly simple, but to be honest, thats a great financial target to be at. For them it covers franchise fees, co-op ad costs, local ads, and that real estate they are in. Those things give independent shops an advantage, as the franchise fees and co-op costs can be 7% or so, and that real estate can be expensive.

To get an idea of what retail stores do in revenue per sq ft annually, look at the chart ive attached. To figure your rate - take your shop's annual sales and divide by your sq ft of floor space. That will give you a metric to see if you're anywhere close to the benchmarks for retail sales. Franchise sign shops in strip malls have to hit the $150 psf/yr mark to stay open. Most hit the $225-250 range. If youre not there, consider raising prices and changing your in shop marketing to upsell clients better. After all, you're in this to make money.

View attachment 127874

I was looking for information like this. Thank you very much for giving me some basis to start with.

 

[decalman]

I think Amazon has this now for $6.95 in paperback edition. View attachment 127867

He looks like he needs to focus on health, and less on worldly garbage.

 

[Marlene]

Glad this old post was brought up as it was nice to see Old Paint aka Joe again. Never thought I'd miss wading thru his all upper case and ))))))) responses but it made me smile to see that again.