Pricing.....

David Lynch
08/13/14 02:46:26PM
@david-lynch

What would you consider a reasonable price increase? Recently I posted a thread commenting about how one of my suppliers jumped up almost 20% on some items seemingly overnight......but now I find myself in a similar position. Well, not quite that much, I am thinking more along the lines of around 10 to 12 % across the board on the base pricing for dulcimers and some changes in the options as well.

On one hand I find myself thinking that is too much but on the other hand I have not changed my prices for over 8 years despite ever increasing costs. For example; on the student model I have held the price at $125 since 2005. I am considering a new price of $139 which is actually slightly less than what my costs have increased on that instrument in that time frame.

On the standard dulcimers I am looking at around the same percentage of increases. The teardrop would go from $295 to $329, the hourglass from $325 to $359 and the hourdrop from $325 to $369.

I hate shocking customers with what may seem to some as a large increase but that old saw about "You can't loose a little on every job and make it up in volume" keeps coming to mind. I know that folks have gotten very price conscience especially with the slow economy.

While I am on the subject, what would you consider as a reasonable "handling charge" as in "shipping and handing". For quite awhile my policy when shipping dulcimers has been to take the actual postage, round it up to the nearest dollar and then add $3. That just covers the cost of boxes, bubble wrap, packing tape etc. so I figured it was fair. But just the other day a customer wrote me complaining that I had charged him $14 for shipping and handling but that package showed the actual postage was "only" $11.85 and he wanted the difference refunded.

Thoughts? Comments?