Profit vs Quantity

[JoeCamaro 11]

I sell decals online and I think I have very good prices... Im cheap to be honest. The thing is that with the amount of decal sellers on ebay and the fact that vinyl is really really cheap (think about how much a square inch of vinyl costs),I dont want to be too expensive. I cant be because there is too much competition there, so I priced my decals to sell more even though I make less profit per sale.

How do you guys go about this? Do you rather make more profit per decal or do you rather make a bit less per decal, but sell more decals?

I believe money is in quantity.

I have 2 advantages:

1. Good prices

2. Original designs you cant find anywhere else

Thank you.

Joe

[duke 12]

go with your gut, whatever the market will stand.

if you have unique decals, keep your prices up

good luck  duke

[JoeCamaro 11]

go with your gut, whatever the market will stand.

if you have unique decals, keep your prices up

good luck  duke

Thats what I thought. I can raise the prices on my decals as most of them are unique, but I dont know if I want to do that.

[BannerJohn 1,324]

Did Walmart get to be the largest retailer in teh world by selling with high prices,or by selling low prices in quantity?

If your prices are too high,you won't sell. And how much have you made?

My old friend Cas Walker used to say " A fast nickle is better than a slow dime anytime".

[duke 12]

Did Walmart get to be the largest retailer in teh world by selling with high prices,or by selling low prices in quantity?

If your prices are too high,you won't sell. And how much have you made?

My old friend Cas Walker used to say " A fast nickle is better than a slow dime anytime".

also, if you have something nobody else has, you can be a bit higher with your prices.

what you have to do is emphasise (sp?) the fact that you are the designer of all your decals,and they cannot buy them anywhere else.

i have seen joe's work, and he can get good prices if he markets his product as "UNIQUE"

lots of people have gone broke cutting prices.

regards duke

[JoeCamaro 11]

John, you are right. I always believed the key to $$$ success was Quantity rather than Profit. I dont know what made me doubt it. Two $2.99 decals are better than one $3.99 or $4.99 decal.

Duke is also right. Im selling my designs as any other regular decal. Im not taking advantage of them being original, unique and not being sold anywere else. I guess I must specify it and make people want to have one. Thanks duke for the advice and for the complimments about my designs.

JC

[duke 12]

[darkdan 3]

Relying on volume sales to profit is like eating soup with a spoon.

Sure, you're doing a lot of work, but you're starving.

The money in this business isn't selling RTAs, it's installing signs/graphics/decals/stickers/etc.

[JoeCamaro 11]

Well, Im not into making signs or banners. I know there is good money in that, better, faster, easier than doing decals. As I've said many times, Im not into services, Im more inot designing and selling my stuff. I like to have a brand and stick to it.

I know if I became a service center I could do big bucks, but I dont like it, so for know I will make and sell decals and shirts with designs on my own, evan though that means I only eat soup

Joe

[BannerJohn 1,324]

Relying on volume sales to profit is like eating soup with a spoon.

Sure, you're doing a lot of work, but you're starving.

The money in this business isn't selling RTAs, it's installing signs/graphics/decals/stickers/etc.

another brilliant bit of wisdom.

Question...who pays you for sitting on your ass waiting for the jobs to come in? I haven't had a day off in 2 years because I keep my prices low enough to stay busy. And I am making a good living,hardly starving. And I'm not overcharging my customers and driving myself out of business like I have seen 2 sign shops here do in the last 2 years.

Not everyone on these forums is a hotshot pro. IN fact,few are. Most of them are trying to make a little extra income in a time when the economy is in the toilet.

Every hour I am not  working cuts the amount I make in an hour when I am working in half. If I do 3 banners in one day and make a profit of $100 I am staying busy. If I do one banner in a day and make the same profit, I am wasting my time.

[duke 12]

my comments were directed to joe and his talent. if you are one of the crowd, then you have to stay with the lower prices.

my point is if you have unique products you can ask more

regards duke

[BannerJohn 1,324]

thisn is true,Duke.

When I first started selling on ebay, I was one of THREE. Now,there are dozens,if not hundreds. Joe has great stuff and it is unique but how long will it stay that way if people see that he is doing well?

I still outsell the competition 3 to 1 because I have built a reputation for quality and low prices. I also have about 50% of my business from returning customers who buy from me directly. Of course I do not sell many pre-made items, I sell mostly custom made. I am am selling my services as well as a product.

I had a concession business on the side for 20 years and when everyone else went up to $3 for a cup of lemonade that I was selling for $2 (actual cost,about $.35 cents,including the cup) I had lines in front of my stand for hours at a time, and the guy up the road was lucky to sell a cup every 10 minutes (at $3). Who went home with $2000 for a day's work? Me. Who didn't make enough to cover his expenses? The other guy.

In a retail business,when you are selling a product,the money is in volume. Any economist will tell you that. People are price-driven. Period. They think and act based on the bottom line. Price. Why do you think places like Walmart can sell the cheap Chinese TV's that aren't likely to last for 3 years...as fast as they can put them on display when you could go down to Circuit City and get a TV that would last 10 years or more for just a hundred dollars more?

[darkdan 3]

I do my best to not work hard for little money.

I'd rather go out and put a few decals on a truck and make $100 than spend four hours weeding tiny little stickers for $100.

I can always make more money, but I cannot make more time.

[darkdan 3]

Oh, and no one pays you to sit around waiting for the jobs to come in.

Go get the jobs.  No ambition, no success.

[BannerJohn 1,324]

well,some of us prefer to just stay busy and make money every day. As for going out and getting business....been there done that. The hardest person to please and to work for is the one you have to convince that they need your services.

Myself, I am to the point that I can pick and chose what I want to do. I don't advertise at all,no listing in the phone book, and I turn down jobs if I don't like the look of the person. I can do banners with one eye shut. No easier way for me to make a living. MY time is worth something ONLY when I am working. It is worth absolutely ZERO when I am not.

[BannerJohn 1,324]

Oh,and Dan...that ambition you talk about... I used to have it. It got me a stroke at age 41. Look death in the face sometime and see how it changes your outlook.

[darkdan 3]

You act like getting paid a fair price and quantity are mutually exclusive.

You yourself admit that you charge more than your competition and still stay busy!

Therefore, you subscribe to my business philosophy.  If you didn't, you would drop your price, to increase volume, to make the same amount of money.

So I don't see why you're trying to disagree with me.

[BannerJohn 1,324]

I do not and never said that I charge more than my competion. I said I outsell my competition.(meaning I sell more than they do) I check their prices regularly or either match or beat them.

The only business philosophy I subscribe to is: do what you have to do to make a living. I've been quite successful for over 20 years and haven't punched a time clock or had to answer to anyone but myself in all that time.

[Rodger 527]

Relying on volume sales to profit is like eating soup with a spoon.

Sure, you're doing a lot of work, but you're starving.

The money in this business isn't selling RTAs, it's installing signs/graphics/decals/stickers/etc.

How else do you eat soup ? Did you mean fork ?

[duke 12]

i agree with darkdan, there is more money to be made doing what he said but, joe wants to make a niche for himself doing what he prefers to do.

better to be doing something your happy doing, than doing something you don't really like doing, even if it means less immedate income. who knows, joe may become king of the designer decals market

regards duke

[JoeCamaro 11]

Guys, guys, guys, there is no need to argue or fight. Everybody has preferences, I just wanted to see who was after profit and who was after quantity. Whats good for me is not good for you  and so. Lets get along. I appreciate your input.

Joe

[darkdan 3]

Relying on volume sales to profit is like eating soup with a spoon.

Sure, you're doing a lot of work, but you're starving.

The money in this business isn't selling RTAs, it's installing signs/graphics/decals/stickers/etc.

How else do you eat soup ? Did you mean fork ?

LOL.  I guess I should have proofread that.  Yes, I meant fork.

If he wants to carve out a niche, that's fine, but if you chase after cheap customers, that's all you'll get.  As a matter of fact, the sign shop that closed here a few years ago was because they did everything cheap.  They never brought in enough profit to keep going.

I'd rather do less work for more money.  I started my own business to set my own hours and my own margins.  If I wanted to work hard all day long and take home very little I would have kept my day job.  Now if I work hard all day and all week I actually make money.

I'm also a big believer in upsells and add-on sales.  More money per customer.  That's why I diversified my business into this field.  Let's face, not everyone can do this.  This is a skill.  Being skilled laborers means we should be charging more for our labor than kids at McDonald's get paid.

Right now is the prime time for signs/vehicle lettering/etc too.  As everyone's sales have gone down, all companies are advertising more.  We're in a recession buffered (I won't say proof) industry.

[SiboleGraphix 1]

I think your doing well with the way it is now Joe. If your happy with your prices and sells, then thats all that matters. Your desings are more unique, but like others said, there are so many people selling on Ebay.

Maybe sometime after you sell out a set of decals, try re-listing them with slightly higher prices, and see if they sell as well as before. If not, then you can always go back to the original prices.

Keep doing what your doing if you enjoy it. You seem to be doing fine. 

Amber

[JoeCamaro 11]

I have a friend who is making a living making decals. He landed a contract to supply decals to a franchise of stores that sell Decals, Paintball guns, collectible swords, and a lot more. He has to supply decals to stores all around the island. He sells each for $1.00 or $1.50 and he is still making a living out of that.

Joe

[Benr98 40]

Joe, I've been pondering this question myself.  I think especially with the current economy, being strategic is key!

I would prefer to get MORE sales and a little less per item....than sit here all week with NOTHING...and it isn't from lack of trying.

I will constantly think of new ways of advertising what we do, etc.

Your products are unique and I think you need to go with your heart on this one.  If it's working for you great.....it may work for you and not another.....but the bottom line is, IT NEEDS TO WORK FOR YOU!

I know you'll do great.....because you are always coming up with new designs/ideas and you already are in business making mode............lol..........I sure wasn't at your age...so KUDOS TO YOU..my friend.