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 Post subject: Pricing
PostPosted: Sat Jan 30, 2010 7:26 pm 
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Here is the project that got me into woodworking, and I'd like to ask all of your opinion about pricing. A bunch of years back, I became obsessed with building the best beach chair in the world. Dropped about 15 hundy on some tools and the chair below is the ultimate result. Its my own design.

Its Jatoba, Sunbrella fabric, marine grade bungee and stainless hardware. Check out the website for more details at www.ohyeahcomfy.com (it needs a little work, particularly being able to click on and enlarge the pictures).

I made the first 1200 chairs by hand and now have them 100% outsourced through a fantastic wood products manufacturer here in Maine (www.nwpmaine.com).

Unfortunately, the past two years has seen an economy that does not condone itself to high end beach chairs, and a divorce on a personal level. Both of these circumstances caused me to reign in the business a bit and re-group. I'm hoping for a fresh start here in 2010.

Question for you is, what would YOU sell these for? And also, what would you PAY for one?


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PostPosted: Sat Jan 30, 2010 9:36 pm 
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First off, sorry about the string of bad fortune. Although the divorce might be the best thing to happen to you. DAMHIKT.


If I was so inclined, I would probably say some where around
$140-$180 for something that nice, may be a little more.


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PostPosted: Sat Jan 30, 2010 10:36 pm 
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Good lookin chair! Me? I am fine with a 12 pack to sit on. But my wife would easily pay $150 for a comfy chair like that.


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PostPosted: Sat Jan 30, 2010 10:54 pm 
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I would say you will have to find a way to make a profit selling them for
$140,max. Quick search shows lots for less,a few for more. Won't say it will be easy,the market must be small for this item. If you are lucky to get a volume order at some beach resort, I bet they would want that number reduced. Hope I'm wrong .


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PostPosted: Sat Jan 30, 2010 11:03 pm 
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i must say that it is an awesome chair and looks beautiful... However i must be a cheapskate because i would have a hard time paying $150 for a beach chair, custom hand made or not, personally speaking of course. But since its a "luxury chair" your market isnt such a person as myself that packs the back of the Ford Explorer to the roof and then loads up the roof rack to go to the beach and lugs all kinds of CRUD to the beach along with 2 kids. We use the standard aluminum ( LIGHT) chairs that if they got beat up and broke ...no sweat buy a new one. Now if your chair was in the $75 range it would be alot easier to swallow than paying 150 for one.

after googling Canvas Beach Chair i found this? Similar but not exact and yours is nicer looking and i would pay more for yours ....but this in only 50 bucks
http://www.islandbeachgear.com/rio-sc10 ... p=RIA-0005

Good Luck with everything


Jeremy


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 Post subject:
PostPosted: Sun Jan 31, 2010 1:07 pm 
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You want the honest truth?

$55.

Why? Because you can buy a beach chair at Walmart for that (or less). In this economy, few people are going to buy much that isn't "bargain basement." That means you have to price at the same level as your most visible competition. Even for handcrafted stuff if you're selling to the general public.


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 Post subject:
PostPosted: Sun Jan 31, 2010 1:47 pm 
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Thanks everyone - I appreciate your input. I've struggled on pricing ever since I made the first one. Like you guys have said, its a beach chair after all, and how much is someone really going to spend on it?

It's definitely a niche market. I've sold over 2500 at $185, which includes shipping anywhere in the US. At shows, for every 10 people who see it, 9 will say they love it then walk away when they see the price. Then the one person will buy 6.

I'm going to hold steady on the price and just continue to heavily market to the niche.

Thanks again!


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PostPosted: Sun Jan 31, 2010 1:54 pm 
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Pricing is always a tough question. Most of us here that sell our work are pricing "one of kind" pieces. I'd check w/ Little Bear and Larry Norton for their expeience. When I ask for two grand for a door it's because I'm not selling the door, I'm selling what I can do for the client. Of course, I consider what he can get at a Big Box cheap and what a custom door would cost from a factory. I make certain my price is above both those.

All that being said, you're trying to do a volume business to a very limited market. (i.e. people w/ lots of disposable $$$$) So, price it like that. And 1200 is not a mass market number number (i.e. Wally World) So don't price it like that.

In short, price it like you know it's worth and quality. That won't get the end of the market that wants a discount on everything but it will cover your costs and make a profit.

If you're gonna go that way (and I think you should) you'll have to find a way to market it, get it front of as many people as you can and you'll get your share of sales.

Good Luck!

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 Post subject:
PostPosted: Sun Jan 31, 2010 2:05 pm 
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You might contact some cruise ship companies, They tend to buy hundreds of chairs, and these would make nice deck chairs. Or check at marina's that have well-heeled yacht owners. Just a thought.

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 Post subject:
PostPosted: Sun Jan 31, 2010 3:32 pm 
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:-?

is my math right??

2500 X $185.00 = $462500.00

I think you've got the price set

Ed


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 Post subject:
PostPosted: Sun Jan 31, 2010 5:18 pm 
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big ed wrote:
:-?

is my math right??

2500 X $185.00 = $462500.00

I think you've got the price set

Ed


Actually the price is probably more like:

185 - 100 (materials) - 35 (sub contractor costs) - 20 (shipping) = 30 (profit) X 2500 = $75,000.

Still, not a bad chunka change. I would think that the cruise ships marketing idea might be where you need to look. That and the beachfront hotels in places like Atlantic City (or try Vegas for their pool areas).

All you need is to find an "in" where they publish their requests for bids. That and a snazzy brochure and web site might get you what you want.


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 Post subject:
PostPosted: Sun Jan 31, 2010 8:11 pm 
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R. Peterson wrote:
You want the honest truth?

$55.

Why? Because you can buy a beach chair at Walmart for that (or less). In this economy, few people are going to buy much that isn't "bargain basement." That means you have to price at the same level as your most visible competition. Even for handcrafted stuff if you're selling to the general public.


Thats just B.S.
Its absurd to equate the two products.
Its a given that anybody that shops at Walmart could give a @#$ about quality.
All they are looking for is a bargain and what they get is cheap CRUD.
You get what you pay for.


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 Post subject:
PostPosted: Sun Jan 31, 2010 8:33 pm 
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vidkid26 wrote:
R. Peterson wrote:
You want the honest truth?

$55.

Why? Because you can buy a beach chair at Walmart for that (or less). In this economy, few people are going to buy much that isn't "bargain basement." That means you have to price at the same level as your most visible competition. Even for handcrafted stuff if you're selling to the general public.


Thats just B.S.
Its absurd to equate the two products.
Its a given that anybody that shops at Walmart could give a @#$ about quality.
All they are looking for is a bargain and what they get is cheap CRUD.
You get what you pay for.


I respectfully agree with vidkid.... the economy may be tough, but that isn't stopping some folks from spending.... and the people it is affecting the least are the ones that don't think twice about spending a couple of bones on a beach chair.... (heck, for a high quality item I don't think about spending good $$... BWW (before woodworking) I could see spending that much... LOML and I spent $150 on a wicker laundry basket a while (5 years or so...) back... because we liked it and it was exactly what we needed (corner basket with cotton liner, white milk painted wicker)) I saw something similar for $19.99 at target a while back and commented, but then LOML said.... the other one is the one we wanted... and we've been very happy with it as it is high quality and has lasted very very well... much better than a cheap one would have.

funny thing.... I'll bet you'll sell more at $185 than you would at $55 because of the funny thing that happens with pricing when people feel like they are "paying for quality" and a higher price may in some instances mean higher sales volume.... the type of customers approached affects this a lot.... and most of those folks just arn't beach chair shopping at Wal Mart... (not that there is anything wrong with it) and by "those people" I do not mean the highly wealthy, I just mean the upper middle-to lower upper income bracket... and there are a LOT of those around.

If those chairs were in a boutique shop they would price at a MUCH higher rate (usually 100% of wholesale price... probably around $300-$325 in this case)-- and some folks would still buy them....

Just my .02... $189 seems a very fair price for online sales (actually maybe a bit low unless that is volume pricing)

Lawrence


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 Post subject:
PostPosted: Sun Jan 31, 2010 8:41 pm 
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oh yeah... GEORGEOUS CHAIR

I'm curious....
how much for the bungee, hardware, and fabric alone??


Lawrence


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 Post subject:
PostPosted: Sun Jan 31, 2010 8:43 pm 
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I personaly think it was a valid opinion. If it was me who was asking I would want pros and cons. If you only get --yea great chair sell it for
300. and make them thank you for it. Well you get my point. Lots if not most people will never buy a custom or high end woodworking. We must try to give the best price to those who at least will consider forking over the money.


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 Post subject:
PostPosted: Mon Feb 01, 2010 12:02 am 
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woodguy wrote:
I personaly think it was a valid opinion. If it was me who was asking I would want pros and cons. If you only get --yea great chair sell it for
300. and make them thank you for it. Well you get my point. Lots if not most people will never buy a custom or high end woodworking. We must try to give the best price to those who at least will consider forking over the money.


The OP question was what would YOU sell it for and what would YOU
pay for it.

I don't give a CRUD about what Walmart sell's their cheap import products for. I don't shop at Walmart for quality products, even if they have the lowest price
Just my $.02


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 Post subject:
PostPosted: Mon Feb 01, 2010 12:06 pm 
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Apples to Apples

The Rio Beach chair from Island Beach Co. :
Image
* solid birch wood frame
* rugged canvas fabric
* hardware unknown
* natural finish
* no cupholder
* 5 positions allow for customized comfort
* supports up to 250 pounds
* folds flat for easy storage and portability
* 30 day warranty
* out of stock


The OhYeahComfy chair :
Image
* Brazilian Cherry, also known as Jatoba
* Sunbrella™ fabric
* Nickel grommets - won't discolor
* Stainless steel hardware
* Cupholder
* Folds flat for easy carrying and storage
* Ergonomically designed arms
* Supports up to 275 pounds
* High back for head support
* 4 Recline settings
* Weighs only 14 pounds
* 4 year warranty
* built per order



Obviously designed and built for two different markets.

I'm going to hold steady on the price and just continue to heavily market to the niche.

You know your product well. That is as good advice as anyone can offer.

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 Post subject:
PostPosted: Mon Feb 01, 2010 4:05 pm 
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Nice looking chair.

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My Boss is a Jewish Carpenter!


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 Post subject:
PostPosted: Tue Feb 02, 2010 9:16 am 
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brrman wrote:
Good lookin chair! Me? I am fine with a 12 pack to sit on. But my wife would easily pay $150 for a comfy chair like that.



Hey what do you sit on when the 12 pack is all gone :D :D :D


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 Post subject:
PostPosted: Tue Feb 02, 2010 11:42 pm 
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Your target is high end luxury shops period.

I am a woodworker just like you.
just like you I made my stuff because I am not willing to pay High bucks.


I would not buy that, at $30.00plus $$$$ BUT a big BUTT because I can make one.

just focus your energy on high end retail shops or customers.

you will sell them

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