Greeting Orchidland,
I have noted the use of the term “price point” in several posts. It
seems to have variable meaning. Would someone please give a
definition for the term.
Judy in Kansas
Judy,
Price points are prices for which demand is relatively high (for a
specific product). This definition is courtesy of Wikipedia. If you
type in price point in your Yahoo search engine you can access
Wikipedia’s definition in more detail.
Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140
@Daniel_R_Spirer
Judy,
I am not sure this is universal, but in Christian retail “price
point” is a given price at which any number of items may be marked.
For instance, anything and everything in the store that retails for
$19.95 would be referred to as having a price point of $19.95. Also,
it is common to refer to items as being at an “affordable” (or some
other adjective) price point.
Del Pearson in Beautiful South Texas
Designs of Eagle Creek
91 Eagle Creek Ranch Blvd
Floresville, Texas 78114
Monday through Saturday 10AM 'til 10PM
Sunday 12:30PM 'til 1:30PM (One hour only)
Phone 830-393-6163
Metro 210-381-4639
Fax 866-341-3756
Web http://www.eaglecreekcs.com/
I have noted the use of the term "price point" in several posts. It seems to have variable meaning. Would someone please give a definition for the term.
‘Price point’ just means the retail price. It is also often used to
refer to a general price range.
“That’s a good price point” usually means it falls within a range
most people can afford.
“Higher price point items” refers to things you and I usually can’t
afford.
“Lower price point items” usually means stuff I can afford but would
be embarrassed to give to anyone but my kids.
The next time someone says something important sounding about “price
point”, just nod your head like you know precisely what they’re
talking about. That’s what the rest of us do.
Hope this clears up the question once and for all.
Michael Rogers
M. M. Rogers Design
Albuquerque, NM
When developing a commercial jewelry line, one usully starts with
the concept and fixes the price point at which the items will be
sold. Price point are prices for which demand is relatively high.
The economics of the line is done backwards from the price point.
i.e. The retailer deducts his share and instruct the manufacturer to
produce a line at a cost of X to be sold at a price point of Y.
Well done Mike!
Price point is a trendy "insider term"that is used by some jewelers
to denote those markups that can be tolerated by a majority of the
potential buyers. Ergo, don’t take it seriously. It is based on the
assumption that people will pay whatever for a given object
regardless of its intrinsic value…kind of like paying more than
it is worth or, paying more than like objects might sell for
otherwise. The arcane world of pricing is not a playground for
amateurs…Ron Mills Gem Co., Los Osos, Ca,
That’s a way to say “affordable to a particular customer”. Or “the
highest point where the willing buyer still is willing”.
Items affordable to Bill Gates are high-priced. We ALL like selling
them.
However, not everyone is a mega-billionaire, so we step back with
pricing. Items affordable to most people are low-to-mid price point.
Sometimes it’s easier to sell two folks stuff at $0.05 than to hold
out for the person willing to part with a dime.
Sell lots, Judy!
dan woodard
Sometimes it's easier to sell two folks stuff at $0.05 than to hold out for the person willing to part with a dime.
On the other hand then you have to make two of the things instead of
one which takes twice as much time. Personally I’d rather wait to
sell the one anytime for a dime and use my time to make another one
that will sell for a quarter.
Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140
@Daniel_R_Spirer
'Price point' just means the retail price. It is also often used to refer to a general price range.
Close but Not quite. Price Point means a little more than just a
good retail price. “Price point” in manufacturing and when dealing
with corporate buyers is an indication that each party involved will
be able to make their mark-up on the item And the jewelry will still
fall into the good (perceived affordability) retail price range. In
other words a good price point really means there is greater
profitability on specific “in demand” products.
Lets say you figure out an easier manufacturing method for an “in
demand” jewelry item, so your costs to make this item drop by a
quarter, you give your buyer a little discount and they can still
charge their retail customer the higher price. Your jewelry item is
now the one with the better price point.
Also, “Perceived Value” has a lot to do with price points. If you
put 22k trim on a sterling silver ring the customer will perceive a
greater value to the ring and you can charge a higher price for a
ring which didn’t cost that much more to make thus you make a better
profit. Giving you a better price point on the 22k trimmed ring, than
on a plain silver ring.
Understanding this concept is how David Yurman has made a fortune!
Nanz Aalund
Associate Editor / Art Jewelry magazine
21027 Crossroads Circle / Waukesha WI 53187-1612
262.796.8776 ext.228
Price points are very important in retail. In typical retail jewelry
stores it refers to looking at what things sell for the best. This is
how the big boys do it.
They might say “this ring would sell better at $249 than $299” So
they’d then tell the factory to make the ring cost them 1/3rd (or so)
of the price point. To cost them 1/3rd of the $249 so they can retail
it for $249. they could sell 25% more at $249 than $299. That’s why
so much stuff is crap. It used to be, make fine jewelry and mark it
up and have a price point that makes sense. Example: Don’t mark
something at $1035, it will do far better under $1000 ($999).
But today it might be made to sell for $799 rather than $999.
When I do store visits I check for price points. I usually find
jeweler BUY higher price points than what the customers buy. That’s
usually why so many jeweler have old inventory and it’s usually
higher price points.
David Geller
JewelerProfit, Inc.
510 Sutters Point
Atlanta, GA. 30328
(404) 255-9565 Voice
(404) 252-9835 Fax
david@JewelerProfit.com
Well after reading all the email the whole concept of price point has
not been clearified a business could (Wholesale retail or
manufactures) diecide to have several diffrent product with a same
price or group products of similiar price and give it the same
price. This does not mean those procducts are cheap as a matter of
fact some times inferior products that just look like that price
group are mixed in.
Gold is going to drop in the next two weeks to 530 to 540 but only
to come back up.
Gary Udhwan
Gary,
With all due respect you need to stop making predictions on gold
prices. On January 3 you claimed that gold would stay at $500 until
June and here it is the end of January and gold went up beyond $550.
No one can predict exactly what the metals markets are going to do
with any certainty. If they could they would be too rich to bother
telling other people.
Daniel R. Spirer, G.G.
Daniel R. Spirer Jewelers, LLC
1780 Massachusetts Ave.
Cambridge, MA 02140
@Daniel_R_Spirer