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Pricing Strategies

Discussion in 'Picture Framing Business Issues' started by Bob Carter, Sep 18, 2000.

  1. Greg Gomon

    Greg Gomon CGF II, Certified Grumble Framer Level 2

    Bob, I love the idea of buying strategies as the next thread. However, I don't think this thread has been completed. Expand on the idea of "Value Added" services as I think of this concept. Bob, lets keep this going, it is probably the most important thread on this forum. Profitablility is not a bad word!
     
  2. MerpsMom

    MerpsMom <span style="color: red"><b><i>Charter Member</i><

    I agree with Greg, but could you please go to "Pricing Strategies-Chapter Two"? It takes forever to load 50 replies...... [​IMG]
     
  3. Marc Lzier

    Marc Lzier Guest

    So I walk across the street to get diner at Taco Bell.

    And the Tacos are now 69 cents (but still the cheapest item on the menu, aside from addtional condiments at 25 cents a pop).

    Bob,
    As for framing, I'd love to talk here about the tacos I have, but, LA is a very tough taco town.

    I'll see if I can dress them up (down) a bit with guac for public consumption.
     
  4. Greg Gomon

    Greg Gomon CGF II, Certified Grumble Framer Level 2

    Bob, A lot of what you profess to us is a change in our psychological perspective of framing for framers. 5 years ago i bought an existing framing business considered a "discount frame shop." My first montra was to change that image. It has taken alot of work, marketing, and word of mouth advertising to change the perspective to a mid-high end frame shop offering quality framing. The first thing I did was raise the bar for framing services in terms of quality of product and services offered. The second action was to stop catering to bottom feeders. The cheapest 30% of my business created most of the problems and cost me the most profit. My biggest handicap was fear of alienating old customers. Frankly, the best customers remained and are our strongest customers. The bottom 30% eventually dropped off, and we are financially and psychologically stronger. Interestingly, the bottom 3rd were with us only as long as we were CHEAPER than anyone else. The botom 3rd act like they are your best friend, but as soon as your price go up, they disappear. The top 3rd of your business will be with you as long as you offer quality product and services with what they perceive as a fair price. As a retailer, you have an obligation to never tarnish the trust between you and your customer.
    In everything we do, we try to give the customer more than they expect. We try to get to know our customers and build a relationship. We are not interested in cutting corners or doing it cheaper. To this end, we give our customers "value added product or services", by giving them more than they expect they become our champions.
    Raising the bar greatly improved our profitability, enhanced our image, and has also increased our business.
     
  5. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    Greg-You have made the first step into becoming a merchant, not just a framer. Congratulations!When you view your business as a business, and think through(and I didn't say rationalize) your decisions, you do indeed raise the bar of your business. Good for you. By recognizing and formulating your strengths and weaknesses into advantages, you prosper. The whole motivation of my thread was to get framers to start thinking in a business-like manner. We can debate till the cows come home what type of dustcover is best, but if you can't make your business more profitable in the process, it just loses it's importance. I've had people email me asking me to send them our formula for pricing, like it's just that simple. It's refreshing to see your careful consideration of your business and makes me want to continue the next thread on buying strategies. Sometimes I feel that I'm preaching and people are wandering off. Your responses, I hope, are more typical. By the way, how many of you have done your shopping and what are your observations about your own pricing structure?
     
  6. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    Jay-This is the thread we spoke of today. Please let me know of your thoughts, privately. Thanks for the call
     
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