Whether you’re new to the flea market business or a seasoned veteran with a new product to promote, sometimes putting a price tag on merchandise is tricky. Some markets draw customers who are looking to haggle, while other have customers who are willing to spend a little more cash in the name of improved quality. Factors such as market size, wholesale costs, and product bundle options can all have an impact on how a vendor sets a price, and how flexible he or she is on it with customers. If you’re at a loss for numbers, here are a few questions to ask yourself to help determine a comfortable place for the price of your products.
What is the landscape like at your market?
Who is your audience? The chances are that if you engage with customers on a regular basis, you have a firm idea of who your buyers are, what they will and won’t pay for an item, and whether or not they’re the haggling type. In this case, if a vendor is bringing in a new product, setting a price could be simply a question of maintaining alignment with what customers want, but for new vendors, it may be a good idea to spend a few hours browsing. Scope out the people, not just the booths, at any new market, and get a feel for how they buy.
What are your competitors charging?
While this may not tell you precisely what an item should cost, it does clarify what customers will expect to see. Use this information to help you decide where you want your prices to place in relation to other vendors, and whether you want to define your booth as being more economical or more high end. Determine what price will dig most deeply into the crowd, grab customers’ attention and earn you the quickest profits.
Do you want to offer pricing options?
If you’re comfortable at a few different price points, try setting three different prices depending on product combinations. If you’re selling personal care products, how about creating buy-one-get-two deals, or offering tiered pricing with a choice for add-ons. Not only will you gain an edge by showing more flexibility with your pricing, but you’ll earn a customer’s trust by getting them more involved with your merchandise. This works especially well for customers shopping in groups, who often want to share a deal between them.
How much do you want or need to make off of a particular product?
Think about conversions when setting your prices, because giving yourself one blanket percentage over all merchandise isn’t a foolproof approach. Certain items, especially collectibles, can still sell well under a higher markup than other items. Pay attention to how well a product is moving, and if the sales aren’t there, the price may be too high. Likewise, if the sales are booming, you may be able to adjust your prices to make a stronger profit.