Tailor Archive
Thread: A question to fellow tailors regarding wholesale pricing.
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Raijen_ArDesh
Wed Aug 04, 2004 7:25 am
#1
I've allways had a fixed discount structure over my basic retail prices for custom orders -- 10% for fellow guildmates and 10% for orders over ten items (and 20% for 10 item+ orders from guildmates).
Does anyone else do anything similar to this? Has anyone recieved comments about it or seen any impact on the bottom line fiscally? Has anyone noticed an increase or decrease in volume?
Any insights would be welcome, as I'm at my usual three month step of revamping my pricing structure.
NJ62
Wed Aug 04, 2004 7:42 am
#2
I find that too much of a discount causes people to "overconsume." Imagine you're going to Nordstrom and you spend $50 on a pair of pants. But when Nordstrom is having a sale you spend $50 on 2 pairs of pants, instead of just buying one. So if they save TOO much, they end up buying too much, which leaves you tired and burnt out.
A small discount, however, garners goodwill in the form of free hides, referrals, etc, and has little impact on your bottom line unless you REALLY have a slim profit margin. If I were doing it, I would not give more than a 25% discount.
There's also the issue of people coming to you directly instead of to your vendor. I was in a big guild and I never gave a discount, because I would rather the guildies buy it off my vendor at full price than to be summoned back to make a duplicate garment at a discounted rate. It was more about my time and availability than money.
A small discount, however, garners goodwill in the form of free hides, referrals, etc, and has little impact on your bottom line unless you REALLY have a slim profit margin. If I were doing it, I would not give more than a 25% discount.
There's also the issue of people coming to you directly instead of to your vendor. I was in a big guild and I never gave a discount, because I would rather the guildies buy it off my vendor at full price than to be summoned back to make a duplicate garment at a discounted rate. It was more about my time and availability than money.
slegger
Wed Aug 04, 2004 8:09 am
#3
My prices are fair as far asI know, so don't discount at all on custom orders in factI round up to the nearest 1000. I make fairley good money off my vendors so it isn't about the money its the timeI can blast out 30 items in the time it takes for 1 person to pick what they want and the color (no I ment the other blue) so for me they are paying for my time, doesn't really matter whatI make
ASrai
Wed Aug 04, 2004 9:30 am
#4
For good repeat customers and friends, I will cut them a break on occasion, especially if its a large order. I don't use a fixed discount. Say they order 25000 in clothes, I might discount it to 24000 more or less. Just depends on the mood I'm in 
AllyaEcati
Wed Aug 04, 2004 9:50 am
#5
All the crafting members of my guild usually followa 20% discount rule.
Raijen_ArDesh
Wed Aug 04, 2004 10:41 am
#6
NJ62 wrote:
I find that too much of a discount causes people to "overconsume." Imagine you're going to Nordstrom and you spend $50 on a pair of pants. But when Nordstrom is having a sale you spend $50 on 2 pairs of pants, instead of just buying one. So if they save TOO much, they end up buying too much, which leaves you tired and burnt out.
A small discount, however, garners goodwill in the form of free hides, referrals, etc, and has little impact on your bottom line unless you REALLY have a slim profit margin. If I were doing it, I would not give more than a 25% discount.
There's also the issue of people coming to you directly instead of to your vendor. I was in a big guild and I never gave a discount, because I would rather the guildies buy it off my vendor at full price than to be summoned back to make a duplicate garment at a discounted rate. It was more about my time and availability than money.
Overconsumption isn't typically an issue -- most of my custom orders from guildies come from about four members of the guildand are relatively easy to run (I have a colour coding system so they can just say "I want a XXX in colours 49 and 118"). The burnout issue Isomewhat solved by making common item/colour combinations in crate runs of 50 -- the small resource loss in making a schematic is more than made up for in convienence and time saved by me (and it makes it easier to provide 4 socket under-armor shirts )
)As for my current margins on my items, they range from2% to 38% -- with an average margin of about 23% (I'm rounding the numbers). Most of the low margin items are low dollar items though (Formfitting/muscle shirts, artisan clothing etc.) so this isn't as much a margin issue -- my overall margin for items with discounts last month was still 9%, with somewhere between 250-290k in volume for that category (sorry for the broad range and rounding to the nearest percent, I don't like disclosing my precise fiscal records).
Thanks for everyone's input (so far) -- any more would be apreciated as much as what's come allready.
RandDarkstar
Fri Aug 20, 2004 4:22 am
#7
My prices can only be considered exorbitant. I charge 25k per tissue used in any clothes. I tend to only do BE clothing now or uniform or other crated sales. I only use a vendor for special orders and items that the customer changed their minds over. If I have a few extra tissues that are burning a hole in my pack, I'll make a few items too.
But. I will stop on the street and make a skirt for someone without batting an eye. I will tweak and consult and have alot of fun doing this. I cannot stand actually having an "inventory" of stock for people to look over. When I go clothes shopping, I want the girls in the boutique to cater to me and suggest things and offer me items to consider. Scanning through a bazaar list is not what I like.
Since the mall that my vendors were in recently was allowed to fail and all items inside were lost, I will have to redo my vendors soon. I'll put 1 of them in my private shop for pickups, and possibly one in the mall where I've moved to, but there is an abundance of tailoring there already. I might wait.
My prices are so high that I can afford to move quite a bit on them. But then, we had sweeping bans recently throughout our server for credit duping (gosh not Gorath!! - smirk) and our economy is kinda broken. For guildies, I can cut my prices alot, but I don't cut prices for bulk.
Remember - there are 3 reasons why people will buy clothes. Need, Greed, Fear of Loss. You need clothing, and will have some basics to wear. If something is a bargain, then you will definately want to get in on the savings. If the item is only available until Saturday, then you will also be pressured into a purchase. These 3 techniques are standard in the industry, though there are a few others that don't apply. Brand recognition on itemsdoesn't work, because they cannot be shown off or distinguished (like a pair of Gucci shoes and handbag.) An armoursmith or weaponsmith with a known reputation for amazing quality is something where this DOES work though....
Raijen_ArDesh
Fri Aug 20, 2004 5:56 am
#8
RandDarkstar wrote:
My prices can only be considered exorbitant. I charge 25k per tissue used in any clothes. I tend to only do BE clothing now or uniform or other crated sales. I only use a vendor for special orders and items that the customer changed their minds over. If I have a few extra tissues that are burning a hole in my pack, I'll make a few items too.
But. I will stop on the street and make a skirt for someone without batting an eye. I will tweak and consult and have alot of fun doing this. I cannot stand actually having an "inventory" of stock for people to look over. When I go clothes shopping, I want the girls in the boutique to cater to me and suggest things and offer me items to consider. Scanning through a bazaar list is not what I like.
Since the mall that my vendors were in recently was allowed to fail and all items inside were lost, I will have to redo my vendors soon. I'll put 1 of them in my private shop for pickups, and possibly one in the mall where I've moved to, but there is an abundance of tailoring there already. I might wait.
My prices are so high that I can afford to move quite a bit on them. But then, we had sweeping bans recently throughout our server for credit duping (gosh not Gorath!! - smirk) and our economy is kinda broken. For guildies, I can cut my prices alot, but I don't cut prices for bulk.
Remember - there are 3 reasons why people will buy clothes. Need, Greed, Fear of Loss. You need clothing, and will have some basics to wear. If something is a bargain, then you will definately want to get in on the savings. If the item is only available until Saturday, then you will also be pressured into a purchase. These 3 techniques are standard in the industry, though there are a few others that don't apply. Brand recognition on itemsdoesn't work, because they cannot be shown off or distinguished (like a pair of Gucci shoes and handbag.) An armoursmith or weaponsmith with a known reputation for amazing quality is something where this DOES work though....
Thanks for the insight (and the necroposting 
)
)
IrisesLise
Fri Aug 20, 2004 10:05 am
#9
I only offer a guild discount of %50. Seems like a lot but I get quite a bit for free from them such as hunts to get me leather, free HDL and Clasps. My guild leader is even hosting 2merchant tents for meletting me expand my business of Tatooine to2busy places on other planets.
I give no other discounts. I have to make up for the discount above .
.
madysonhope
Sat Aug 21, 2004 8:13 am
#10
I usually offer my guildies and good friends a disocunt.... and this is primarily cause these are the people who get me most of my supplies... wether HDC, HDL, CCT, hides, fiber etc... you get the point here. Most of them sell these items in bags to me for 1 c, so i feel it's fair to give back to them.
Bulk orders i do not give a discount to... simply because i will sit there and make the clothes out, or do a run or something,
my prices are pretty fair and reasonable,
sry, just lost the rest of my thought!!
Madison
Mallstrop
Sat Aug 21, 2004 3:09 pm
#11
For guild mates I would tend to do the items for free, assuming its not going to cost me too much, 200 Materials isn't much when it comes to friends. bigger orders I would go as far as 50% off, its not a big guild so over use isn't really an issue.
for larger orders I would give a discount of 15% max
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