Does Being On Sale Motivate You To Buy?

Texicaster

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¡Bueno!™

I sell my handmade (by me) jewelry on Etsy. I do OK! Etsy tends to like sales so I have a permanent "Buy 2 get 20% Off" sale. Of course I have to raise my prices to offset this discount on my bottom line... Sales has to include entire shop so I can't set up certain items not to be included.

Since I pay varying amounts for my gemstones and have a minimum price my profit can range on any one piece. Often I paid a lot for something and to keep prices minimal I have to charge more in case someone takes 20% off on it....In other words lots of stuff is profitable at 20% of...many things aren't...usually the higher dollar items.

I guess my question is how motivated are you to buy at 20% off for 2 as opposed to a better price for 1? Do sales motivate you to spend more?

Typical idea is an item I'd sell for $125 has to be listed at $145 to come close (I get $116) so I'm obviously missing some sales from folks who just want one but would be more motivated at $125....

To complicate matters my sales are down 15% BUT revenue up 11%....

Thanks!
 

Timbresmith1

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To me the thing is generally worth “x” dollars. I prefer to support local producers or small independents, whenever possible. To me, money that I spend at Amazon or Walmart goes into some black hole fund that helps keep people in a cycle of poverty.
 

SuprHtr

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I’m a victim of the sale ploys. It’s irrational but I find myself drawn to stupid deals. Ask me how many $300 guitars I own…
 

KeithDavies 100

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The question reminds me of a story I read once - which may or may not be true, let's be honest - of a greengrocer in Kent. At the front of his shop he had a basket labelled "strawberries" and a basked labelled "premium strawberries". There was no difference between the two - they were both stocked up from the same stock in the back - but the "premium" ones were sold at a higher price. He apparently found that most people chose to pay the extra for the premium strawberries!

Not so sure this answers your question, but I remembered the story and it always makes me smile.
 

3fngrs

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It might encourage me to buy something I've been looking at sooner than I'd planned. It has to be a pretty significant sale.
 

Texicaster

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The question reminds me of a story I read once - which may or may not be true, let's be honest - of a greengrocer in Kent. At the front of his shop he had a basket labelled "strawberries" and a basked labelled "premium strawberries". There was no difference between the two - they were both stocked up from the same stock in the back - but the "premium" ones were sold at a higher price. He apparently found that most people chose to pay the extra for the premium strawberries!

Not so sure this answers your question, but I remembered the story and it always makes me smile.

When I first started making jewelry ~1992 I visited a small jewelry tool shop in San Diego. Chuck Warren was in his 80s at the time and had been in business in SD since before WW2!

His specialty was hand engraving. He told me back then there were like 3 engravers in SD and they charged like 5¢ a letter BUT everyone took their business to LA and paid 10¢ a letter...has to be better right? Well he decided to to charge 10¢ a letter and was soon THE engraver in SD!

There IS a perceived value in price....I've been advised more than once to drastically raise my prices when sales slump.... Like leaning into a left hook.....doesn't sound right....
 

bgmacaw

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My wife... "But I saved $50.00 !!"

Me... "NO, you spent $300.00 !!"

My wife and I reverse that role when talking guitar gear. For example...

Me: "I saved $100 on that pedal I just bought on Musician's Friend's deal of the day!"

Her: "But you spent $125"

Me: "But it's on 4 easy payments!"

Her: (mean glare)

Then, when she buys something on QVC or HSN, the roles reverse.
 

Jakedog

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It depends. I wanted a new bass rig. My bass gear was fine, but it was old, and extremely big and heavy. I picked out what I wanted, and started putting together a plan to eventually get it.

Then the head went on sale for $150 off, so I just went ahead and bought it. A little while later, the cab went on sale for $180 off, so I just went ahead and bought that as well. If not for those sales, I probably would not have bought it until next year.
 

oldunc

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As a lifelong poor person, they certainly do but it's more a matter of when I buy; I won't buy something I wouldn't otherwise have bought, I just try to wait for sales. But I'm not really your target demographic- poor people don't buy a lot of jewelry.
 

schoolie

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Of course, because the more I buy, the more I save, right? Yeah, if I want something and it suddenly goes on sale, I can't help myself..I'm weak...
 

Telekarster

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It's interesting you bring this up, cause I just bought my first Vox amp (as stated in another thread). I wanted a Vox for quite a long time but it really wasn't a priority. Plus, I need another amp like I need a hole in the head. Anyway, walked into my local GC the other day and they had a mint condition used one for a price I couldn't afford to pass up.

Point is - If it's something I "need", I have no problem paying full price to get it... especially if it's something unique and custom made i.e. one of a kind or hard to find. To find such an item on sale, even better. If it's something I "want" to have, and the item is readily available, well.... it's a priority thing and to get such an item on the cheap vs. full price is usually the goal with me FWIW.
 




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