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Business Development: Let's Talk Pricing, Part 4

teddyBusiness Development: Let's Talk Pricing, Part 4  -  by Teddy Wright, Education Director

Schools and Pre-Schools:
Customer #3: 
I'm a school teacher at Jones Elementary. We have a kiln here, but I love the little sharks you sell. I have $3.00 per student to spend. Can I purchase 100 sharks for $3 each? We will paint and fire them at school.

We all get them from time to time, the “we have no money” customer. Why not say yes to this customer? A shark will cost you $1.50, sell it for $3.00. You just made $150.00 pure profit with no work involved other than a phone call. It is $150 you would not have earned because this customer would not come to your studio. The school probably doesn’t have the same contacts you do. MAKE THE SALE!

Or how about the customer that only has $5 to spend? Tiles are a great way to meet their needs. Put together a kit to go: tiles, brushes, 4-6 colors, permanent pencil, and instructions. Have the organization pick up the tiles, run the art session, return the tiles and pick up the tiles when fired. Since you have eliminated labor (other than firing), you can still make money with this project.

Develop a flier with pictures and prices of projects for organizations that have less than $10 per person to spend. Take it one step further and stair step the costs based on quantities i.e. 20 – 50 = $6 per tile, 51-100 = $5.50 per tile etc. By doing the work up front you can avoid quoting a price off the cuff and not making the margin you need.

Stay tuned for next month: Fundraising and Not-For-Profit Organizations

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