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wayland · Joined: 14 Dec 2006 Posts: 1171 Location: Campile. Wexford

This topic comes up from time to time. Have you a formula or do you just go and see what the supermarkets are charging?

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blowin · Posted: Mon Jun 15, 2009 2:08 am Post subject:

Unfortunately that is an academic question for me because I don't have anything to sell these days ( except my body -- and I am open to almost any offer for that but please don't tell MOH ) Wink

The hens and ducks have been taken by fox and mink , fruit stripped by birds and deer , vine weevil in the poly tunnel & gooseberry beetle on the gooseberries --- and I can't bring myself to kill the trout in the pond .
Did have a nice little car to sell . Left it on the drive not 40 yards from the house and someone who needs a good kicking completely trashed it by wrecking a door and pulling out all the electrics in an attempt to hot wire it .

Mind you I can still do a nice line in live midges by the kilo if anyone is interested .

But back to serious topic -- It seems to me that you you need to work it from both angles . If you can slightly undercut the shop while offering better/fresher quality then match price as closely as you can but maintain the psychologically important difference of 50 cents , or do the 99c thing ( eg 4.99 will achieve a lot more sales than straight 5 euro ) .
If that leaves you with a poor net margin then go significantly higher and place a lot of emphasis on the positive attributes of your product ( rare breed / organic / local / really fresh etc ) . This will require more marketing eg your own sales pitch / nice presentation / personalised labels and will probably need to be targeted to specific consumer groups .

Phew , I am glad I left mass volume retailing after all those years ! Laughing

wayland · Joined: 14 Dec 2006 Posts: 1171 Location: Campile. Wexford

Sound words of course. My aim is to get 100% profit after costs. As it is not practical to charge for labour <I have to be here anyway> Our pricing policy is a simple one and 100% margin is good enough for anyone me thinks. I do have problems with this system at the mart. We are not allowed to undercut anyone else selling the same product. If costs plus margin does not sell the product then the product is no longer viable of course. Simples! Very Happy

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