Pricing Products on websites

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clay

clay

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Aug 12, 2004
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www.mcadamsfloral.com
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In reviewing some items on my website, I now question how I have set up my product pricing on the site. Currently I have;
Small $39.95
Medium $49.95 (as shown)
Large $59.95
One of the reasons I question my thought process from when I set it up this way (a long time ago), is that it is difficult to offer a smaller size than "as shown" on a lot of products/designs.

In doing some comparisons, I looked at FTD/800 that most likely have spent thousands of dollars (yes, our money) to know the "best way", and even they have a difference.
FTD
As Shown $XX.XX
Premium $XX.XX
Deluxe $XX.XX
800
Large $XX.XX
Medium $XX.XX
Small $XX.XX
By the way, which version is pictures on this? http://ww22.1800flowers.com/product.do?baseCode=17565&dataset=10165&cm_cid=d10165

In checking other sites, most seem to be some variation of;
As Shown $XX.XX
Premium $XX.XX
Deluxe $XX.XX

Any thoughts or comments? Thanks, Clay.
 
We use Standard, Deluxe, & Premium with none designated as shown. Most order a deluxe or premium.

This is a difficult way to describe items, but so so is Small, Medium, Large.

Like when people say is that a nice arrangement? or is that a nice size? We typically say our minimum vase is $35, the average is $50, and WOW starts at $75.

That's hard to explain on the Internet.

Going out-of-town for a few days, but looking forward to this thread when I return. Hope ya'll figure it out while I'm gone! LOL
 
We used to use as shown, fancy and premium. People always asked us what the difference was besides price.

We now use shown, more flowers, even more flowers and we sell a lot more upgraded arrangements off the site now. Sort of sounds simple and unsophisticated but now customers don't have to try to figure anything out.
 
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Just remember that 10.00 is not much of an upgrade. Hitomi told last week that an average upgrade should be 20.00 to 25.00 between each price point. A 10.00 difference is only 2 flowers??or a bigger vase and maybe one flower. Just a thought that makes you think.
 
I tried to stick with $15~$20 pricing incriments and call them... as shown, add a little, add a lot. We have a few items where "a little less" is an option as well as a few where "knock 'em over" is also an option. I have found that most people choose add a little (which really surprised me).

Great thread Clay!!
 
mcf said:
We use Standard, Deluxe, & Premium with none designated as shown. Most order a deluxe or premium.

This is a difficult way to describe items, but so so is Small, Medium, Large.

Like when people say is that a nice arrangement? or is that a nice size? We typically say our minimum vase is $35, the average is $50, and WOW starts at $75.

That's hard to explain on the Internet.

Going out-of-town for a few days, but looking forward to this thread when I return. Hope ya'll figure it out while I'm gone! LOL
Click to expand...
I love the use of the word "standard"

No one wants to be "standard", they always spend more...

Good Job
 
Well I use "medium as shown" and go up from there.

It would be an interesting test to change it to "small as shown" for a couple weeks and see if I get more upgrades.

Great idea Clay, and I may just try that.

Here's a similar question - when you send an order and state "upgraded value $20" (or whatever) - do you think many florists actually DO upgrade it or do you think they just keep the tip?
 
Norman Northen said:
Just remember that 10.00 is not much of an upgrade. Hitomi told last week that an average upgrade should be 20.00 to 25.00 between each price point. A 10.00 difference is only 2 flowers??or a bigger vase and maybe one flower. Just a thought that makes you think.
Click to expand...
Good point. I generaly stick with "20% rule" but I can see where that might not appy as well on smaller items.
 
master J said:
also on the subject of prices on websites...

which do you think is the best option?


49.95
49.99
or 50

I am leaning towards using a round number like $50
Click to expand...

Adam, better to go with either of the first two rather than $50. If you can, you should read Paul Goodman's article on Price Barrier Pricing. $50 is a price barrier, $49.95 is not.

Erlene
 
master J said:
also on the subject of prices on websites...

which do you think is the best option?


49.95
49.99
or 50

I am leaning towards using a round number like $50
Click to expand...
Regarding the top two choices, I found this on Gaylon Pyle's sheet on Price Barriers;
Prices ending in .95 are viewed as the regular price.
Prices ending in .99 are viewed as a sale price.

Both Gaylon Pyle, Paul Goodman, and a whole list of retail marketers have written information on the "reasons" for price barrier pricing...it is more detailed than I can type.

I did go to one presentation that I thought was interesting, they stated that if you are branding your shop as a "high end" type of florist you would just show it as $100 and not $99.95....I can see that. The also mentioned that a "regular" flower shop should follow the standard price barrier method of pricing up until a point, the go to round numbers. Kind of like the thought process of a high end....meaning the type of customers that are shopping in the price area of say $200 will not be swayed by $199.95....in fact, they mentioned that the .95 actually "cheapens" the product in when you get in the upper price ranges.
 
clay said:
....in fact, they mentioned that the .95 actually "cheapens" the product in when you get in the upper price ranges.
Click to expand...

This is the very reason I went with whole number pricing on my site. I find that as a consumer the .99, .95 thing strikes me as kind of WalMart-ish...like a numbers game...but that is just my opinion!
 
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