[Jewelry making - Article 00130] - Re: [Orchid] [Biztalk] Success in business

[Galarneau's]

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    Kay and All, I adjusted my selling prices strongly downward.  All my
    pricing used to be according to the wholesale and retail relationship
    shared by businesses and manufacturers.  In other words I would sell
    at one price to the businesses and then mark the prices up to the
    retail prices when doing a retail show. This markup was anywhere from
    200% to 500% according to what my retailers were charging for the
    goods.  When the retail to wholesale business relationship crumbled
    there was no reason to hold on to  this pricing scheme.  I now price
    at a price to sell.  Usually my prices are between what I used to
    sell at wholesale and what I need to make to make to cover expenses. 
    My reasoning is that most of my sales are now ones and twos and I
    have a lot more overhead handling and processing each
    transaction.Sales have been very strong. Before I started this most of
    my wholesale accounts were hounding me that my prices were too high
    and that the items would not sell.  The problem was they were not
    willing to cut any of their profit to make a sale.  I had my
    wholesale prices right down to the wire where I could no longer cut
    the prices and make a profit.  My wholesale accounts did not care. 
    One even told me that when I went out of business and was liquidating
    he would purchase all my inventory at 10% of the wholesale dollar. 
    Needless to say this transition for me was a total change.  I wrested
    with the change for five years before I finally gave up on the
    wholesale and retail relationship.  I have made the change and will
    not go back. 

Gerry Galarneau

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