Wednesday, 3 April 2013

Day 7 - Wednesday 3rd April

Opening Balance: 466.82

There's not a massive amount to report today. It's the end of week one, and I've just touched £500.00. Thank you to every one that has helped it reach that point, It is really appreciated.

The new website should be live within 24 hours, which is fantastic news as its so much easier to navigate than the current website.

I've posted 99% of the orders today, with the last ones being dispatched tomorrow. Incidentally I cant believe how much the postage has gone up, talk about making it difficult for small businesses.

I'm still battling updating various Folksy shops and the shop, but my brain has become that addled that I've given myself a bit of a break today.

Today I wanted to talk about how we price products. Its been a topic that's been brought up over the last few days in relation to how you price art, how you price crafts and how you price products. I've been watching a few those programs on TV about 'Sales' and the like and how pricing a product too cheaply can affect your customers opinion.

As a result I figured I'd spread some knowledge on how I price my products - that's not to say I always get it right.

Research into how other companies priced their soap was a starting point. Prices ranged from £1.50 to £13.00!! Yes £13.00 for a bar soap. I would never charge that. But if I could cover my costs and charge £1.00 for a bar of soap, would people buy it? Would customers see it as good high quality soap with natural ingredients and no chemicals? I would of course sell some. I remember doing my Business Course through the Princes Trust two years ago and they said to me, that as much as I wanted to keep my products cheap, don't undersell myself and the quality of the product.

Next I have to look at how much all my ingredients cost, and then add a little profit, (because I do want to eat!) and then take in to account various overheads.

And then of course there's the time it takes to make everything.

After taking the above into account I came up with my pricing that was both competitive with other companies selling high quality soaps, and also covering my costs, (providing I sell any that is!)

Alex Polizzi (a hero of mine,) discussed Sales and the like in one of her TV programs, she said Yes, everyone loves a bargain, but there has to be a limit, too many bargains and sales, then you look desperate and like your products aren't worth the money you were originally asking for. Its an interesting point, how do you find the fine line? We do all love a bargain and promotional offers always work a treat, but you also have to make your business look like its worth the money, and there's no point undercutting yourself.

So I plan on running promotional offers and the like, but I'm certainly not going to do a 30% off sale or something, not only would it not be worth it and I may as well shut the shop door tomorrow, the idea that it would in fact put some customers off is enough to stop me, although I am thinking of running an awesome Loyalty Scheme because I do love all of my wonderful customers.

Finally today I just wanted to say another big thank you - we have got to £500.00! But it is time for another huge push I have 3 weeks left to make another whopping £3500! I still believe its possible and I know my awesome customers think so too, so lets keep spreading word far and wide! Shout it from the ceilings! I certainly am! :)

Don't forget the website and the facebook page

We've attacked Twitter too so lets get #4wks4000 trending!

Cheers everyone!

Closing Balance: 500.56

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