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Business Development: Let's Talk Pricing, Part 2

teddyBusiness Development: Let's Talk Pricing, Part 2  -  by Teddy Wright, Education Director

To continue with our Business Development series, here is a successful program to generate sales, returning customers and have some fun within your own studio!

Pottery To Go:

Customer #1: I have three small children at home, so I don't have time to come in and paint. All of my free time is after 9:00 p.m.

Challenge: This customer is not going to come in more than once a year for a gift or maybe a girl’s night out. She doesn’t want to pay for a babysitter and she doesn’t want to drag three kids into the studio and let’s face it, you don’t want them there either.

Money Making Solution: Offer "Pottery To Go". This can be for the frazzled mother, slumber parties, birthday parties, family reunions, bridal showers, pre-schools etc.

As part of Pottery To Go, you should:

  • Sell the pottery
  • Sell 2 oz. bottles of glaze (Mayco's Stroke & Coat® of course)
  • Sell brushes
  • Charge a firing fee when they return the pottery.

Not that you've decided this makes financial sense, on to Step 2. How do we price Pottery To Go? Here's an example of how I, Teddy Wright of All Fired Up in Kansas City, Missouri, sell Pottery To Go in my studio:

Pottery In-Studio Price To Go Price
Dinner Plate $13.00 $6.50 (50% Off)
Glaze $8.00 $19.50 (6 colors @ $3.25/bottle)
Brushes no charge $5.00/economy pack
Firing Fee price included $3.00 (charged when returned)
Total: $21.00 $34.00
     
Your Costs:    
Plate $2.92 $2.95
Glaze $3.00 $9.60 ($1.60 x 6)
Brushes included $2.50
Firing $0.50 $0.50
Labor $1.00 $1.00
Total: $7.45 $16.50
Profit: $13.55 $17.50

 

Return Visit ------

Pottery                                 To Go Price
Plate   $6.50
Glaze   $3.25/bottle (additional sale)
Brushes   -
Firing Fee   $3.00 (charged when returned)
Total:   $12.75
     
Your Costs:    
Plate   $2.95
Glaze   $1.60
Firing   $1.00
Labor   $1.00
Total:   $6.55
Profit:   $6.20

 

Benefits of Pottery To Go:

  • You are not servicing the customer
  • No paper towels, toliet paper or water are used
  • There is no mess to clean up
  • You've freed up space for other in-store customers
  • Your staff is available to help other customers
  • You've made a sale of pottery, glazes and brushes even if they don't return to have their pottery fired.

And the best part is you are not getting new customers. So why not give it a try?

 

Stay tuned for next month when we will be discussing Custom Work...

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