What Are You Offering?

Back when I started doing shirts, it was 1978.  Retail, the price was typically under a dollar.  At this point, I have no way to analyze the costs to determine whether or not that price ever made sense.  One thing that I believe is certain, costs rose at a disproportional rate than the price.  The first time that I was ever published in any publication – it was the National Clothesline – was in circa 1991.  I lamented about how retail drycleaners were so resistant to raise their retail price beyond $.99.  I called it the “dollar barrier.”  Once drycleaners broke through it and priced their shirts at, say $1.10, it was so easy to go to $1.25, $1.40, whatever.

Now, shirt prices are finally where they should be.  Prices range from three dollars to over five dollars.  Boutique cleaners charge over $25.  Really.  I think that shirt prices are in line with the work involved.  This is great news for industry.

It is okay to price shop for anything.  I am not the most frugal person.  I prioritize other things, and that’s what I want to talk about today.  I just moved from Massachusetts to Rhode Island.  Up here in the land of tiny states, that is only a 7-mile move, but, as is always the case when one sets up a new abode, there are things to buy.  I have found myself shopping – by price – every day.  Am I looking for the best deal?  Absolutely. 

In some cases, this is easy.  In those cases, it is easy to see that retailer A and retailer B are offering the same exact item for a say, 15% price difference.  But things get complicated when the consumer gets the illusion that the products are the same when they are not.

If you want to buy a new shirt press and two dealers are offering the same machine at different prices, it is a certain bet that both machines are identical and the savings are clear.  But things get muddy if one dealer justifies his higher price by stating that his price includes rigging, shipping, installation and start-up training.  What is the value of that?  That is difficult to calculate and therein lies the point of this column.

Charge what you think is fair for your product.  Offer as much as you can for it.  But make sure that your customers understand what they are buying and school them on what you’re selling. 

You need to make sure that when a customer or a potential customer compares you to the dime-store cleaner down the street, it is very obvious that you are not selling the same product.  It might look like it on the surface, but behind the curtain, you are offering so much more.  Make a list right now.