profit Vs justification


[ Follow Ups ] [ Post Followup ] [ The Henna Page Forum ] [ FAQ ]

Posted by samantha on July 6, 2002 at 20:43:18:

Ok this might sound a bit daft but any thoughts on this would be
appreciated.

We are in our 2nd year of hennering. Last year we set our prices on
design complexity, size etc and we made quite a decent profit in the
summer months.

This year we are faster and better so we reevaluated our pattern
books as a lot of the designs from last year are now easy so we have
cut the prices. We cannot really justify charging say 8 for a
seahorse anymore so we have cut it to 5.

This reduction in our prices do to our rising capability however has
had a dramatic effect on our profit margin. Although we are hennaing
more people we are erning less due to the price reduction of the
designs.

So the problem is.... Do we keep the designs the same price as last
year although we can do most of them in half the time this year than
last. Or do we knock the designs down in price because they are now
easy and there is not much justification for us to charge the same
ammount as they are easy for us to do?

Does this make any sense?

Samantha
Wiped out after a busy day where the sun came out for an hour or two
at last

 


Follow Ups


Post Followup

Name:   
E-Mail:   
Subject:   

Optional link URL:   
Link title:   
Optional image URL:   
   

[Home] [How] [Why] [What] [Where] [FAQ] [Forum] [Journal]

Served by ruboard 2.1.1; Copyright © 1998 by Andrew Maltsev.