So you don’t like “destash” prices?
Just wanted to share 8 questions you might want to consider when thinking about destash pricing. All of this is meant as some standard considerations, and certainly are not intended to be a criticism or attack on any person. Read this in a nice, non-accusatory tone – please. 🙂
1 – As Brooke Swisher Hissong once pontificated, the term “destash” means different things to different people. Some people consider “destash” to be “get rid of your extra supplies at garage sale prices” while others have “invested” in a ribbon supply and expect to receive back what they themselves paid at a minimum. Maybe the seller has a different definition than you do?
2 – It’s impossible for you to know what a seller paid for the ribbon. Maybe she bought $1000 worth of ribbon wholesale, and therefore paid only $.30 a yard. Perhaps she helped a buy in host fill a roll – for the good of the group – and paid $.60 cents a yard. Could you be making assumptions about her price?
3 – Have you considered the additional costs the seller may be paying? She may have paid shipping from her supplier to her (whether that be buy-in host or wholesaler), paid for packaging, labels, tape and ink to get it to you. She also will need to pay $.29 +3% per invoice to paypal in order to collect your payment.
Yes, paypal’s rules state that sellers do cover these costs, but as any good business practice goes, these fees are rolled into product cost. Just like when you order from Amazon – your free shipping isn’t REALLY free. What financial investments has the seller made in order to get this product to you?
4 – Time is money… When I spend time photographing, posting, measuring, rolling, packaging and driving your package to the post office, I am not using my time for other opportunities that might also bring income to my family – like creating bows, or blogging. You, in turn, are not spending the time waiting for items from a buy-in, or researching for a lower price. In this way, you pay a higher price as you are buying my time that you haven’t spent yourself. Have you considered the time you’re saving in purchasing “destash” or “RTS” (Ready to Sell) ribbon.
5 – Wholesale pricing is defined as a financial discount awarded to someone purchasing at large quantities or with predetermined commitment. This discount may be given to a seller who has purchased large quantities, and made commitments of her personal dollars to order ribbon from a supplier. Her personal dollars are tied up during the processing time, as well as during the time she keeps ribbon inventory on her shelf. She commits to the risk that the order will not be filled correctly, will not arrive at all, or will be seized by customs and might be taxed at her expense. She takes a risk that someone caught with counterfeit ribbon might identify her as their source, bringing her into legal issues. What purchasing quantities are
you looking for, and what commitments have you made to be rewarded with these discounts?
6 – Unfortunately, people may take advantage of others in tough situations. While some identify sellers as those taking advantage of new buyers unaware of “good deals,” there are also individuals whose “bargain shopping” takes advantage of those who are liquidating their business and need to “get cash fast.” As sisters in business, are you doing your part to encourage “fair trade” in the price of supplies?
7 – All consumers have rights. An excellent comparison is in a store like Walmart. Walmart receives a low price for their quantity, and for the commitment they take in making a purchase of stock – not guaranteed that it will move. All the shoppers at Walmart also have the right to purchase or not, based on their budget, needs and alternatives. Yes, perhaps you can get it cheaper at another store – but if it takes your time (which = money) to shop around, and gas to get there (same with buy-in fees etc), it might not be cheaper after all. While buyers might not love the price offered, they are offered the choice as part of capitalism, to not purchase from that store. Same goes for suppliers. If enough buyers do not find a price satisfactory, the seller is forced to change it – as is the economic principal of “supply and demand.” Are you using your dollar as your voice?
8 – As business owners, we all recognize that “supply” is not the only cost that goes into our creations. Prices are set not on cost alone, but by the “market rate.” For instance, a shabby headband might cost $.15 for a flower, and $.15 in elastic. We recognize though, that the “going rate” is $3 – that’s what our customers pay, and it they don’t question how much we paid for our supplies. Are you offering the same courtesy to fellow business women in realizing that their time, investments and supplies are of value?