I come to you my fellow RPF-ers with a question of cost, pricing, and value. I have been in an ongoing conversation with someone about what a prop should sell for. Short story - I make Helraiser boxes. I'm not the only one who does. Another box maker sent me an email through Ebay and told me I'm hurting the market and devaluing the piece by selling it for much lower than he does. He said that people will associate higher price with higher value so you should raise your prices. He said - You learned to etch your own parts, that takes time and talent so you should raise your prices. I said that since I can make my own pieces it costs far less than what an etching house charges - so I can sell it for less. I said that there is a perceived value of professionally etched vs home made - so I sell it for less. I said that it costs less than an entrée at a nice restaurant for me to make a box, and have a high profit margin - so I sell it for less.
So has this ever happened to you? Has someone else tried to tell you what to sell your products for? If others are making the same item that you are, how do you determine your prices? If you sell your item for less than someone else, is that devaluing the item because you have lower costs associated with making the final product?
My thoughts are simple - make a better product for cheaper than the next guy and sell it at a reasonable price. What are your thoughts?
So has this ever happened to you? Has someone else tried to tell you what to sell your products for? If others are making the same item that you are, how do you determine your prices? If you sell your item for less than someone else, is that devaluing the item because you have lower costs associated with making the final product?
My thoughts are simple - make a better product for cheaper than the next guy and sell it at a reasonable price. What are your thoughts?