Loading...
> >

PAs- What goes into your decision when pricing products?

Lissa_xyzLissa_xyz Posts: 6,116
edited August 2017 in The Commons

Just curious about people's methods. Do you set hourly prices and go based on how long it takes to make something? I know a lot of freelancers outside of this niche market generally do it based by hourly or flat rate for single commissions, but how do you decide when it's sold through a brokerage and being bought by multiple people?

 Do you roll dice and hope for the best? 

Post edited by Lissa_xyz on

Comments

  • nonesuch00nonesuch00 Posts: 18,846

    DAZ 3D probably advises them too I think after they make their initial suggestion for price.

  • Daywalker DesignsDaywalker Designs Posts: 3,586

    My best guess is that prices are generally based on what similar products are marked, as too high or low runs the risk of being adjusted by DAZ to avoid lax sales or undercutting other vendors. Also, some stores have a pricing guidelines document with example prices and what they expect to be included at that price point.

  • FSMCDesignsFSMCDesigns Posts: 12,852
    daywalker03 said:

    My best guess is that prices are generally based on what similar products are marked, as too high or low runs the risk of being adjusted by DAZ to avoid lax sales or undercutting other vendors. Also, some stores have a pricing guidelines document with example prices and what they expect to be included at that price point.

    Interesting idea. I would think DAZ wouldn't care as much on the pricing as long as they get their cut and with all the insane sales this place has, I wouldn't think it would matter that much if it was on the high side.

    While we constantly get consumers crying about high prices, in reality when you look outside this niche community and at the larger 3D community, market value is much, much higher on quality mesh. Good thing DAZ caters to the much smaller hobby market with it's pricing and sales.

  • RawArtRawArt Posts: 6,153

    Usually it is based on comparable products in the marketplace, although DAZ does offer their recommendations as well

     

  • HavosHavos Posts: 5,636

    In a market economy, the price it took to make something should have little bearing on its price. The only consideration would be what price will maximise revenue.

  • Daywalker DesignsDaywalker Designs Posts: 3,586
    Havos said:

    In a market economy, the price it took to make something should have little bearing on its price. The only consideration would be what price will maximise revenue.

    Indeed, which is why staying at or near the existing market prices is best. You have a better chance of maximizing sales (and thus income) if you do that, unless you're independently wealthy and just doing this for something to pass the time.

  • nicsttnicstt Posts: 11,715

    I had two considerations.

     - A return on time invested.

     - A fair price.

    As a new PA, I've no idea if I've found the right balance.

  • HavosHavos Posts: 5,636
    nicstt said:

    I had two considerations.

     - A return on time invested.

     - A fair price.

    As a new PA, I've no idea if I've found the right balance.

    Whilst number 1 maybe important for the PA, it is irrelevant for the client. They will buy something if they feel it is worth the money, they will not pay more depending on how long the creator needed. As such you only should consider the price "the market will bear", and thus do as daywalker03 suggests and look at the price of similar products.

     

  • DestinysGardenDestinysGarden Posts: 2,553
    daywalker03 said:

    My best guess is that prices are generally based on what similar products are marked, as too high or low runs the risk of being adjusted by DAZ to avoid lax sales or undercutting other vendors. Also, some stores have a pricing guidelines document with example prices and what they expect to be included at that price point.

    Yes, this one is correct.

  • FaveralFaveral Posts: 416
    There is no fail safe recipe for this...It's always more or less a roll of the dice. Recently daz has taken to adjusting prices but it still is just an educated guess. In my experience high price items are consistently the best sellers.
  • Lissa_xyzLissa_xyz Posts: 6,116

    Thanks everyone. Knowing that similar market value works better vs time spent helps a lot.

    @Faveral Really? That's the opposite of what I figured would happen. Is it because price is usually an indication of quality?

  • FaveralFaveral Posts: 416

    Not necessarily unfortunately. I see products that I know are worth easily double or triple what they sell for and I also see some offered at double or triple what they are worth. There are only a few professional PAs who really can't afford to miss the mark and who really work at getting the right price for the value of their work. The hobbyists (and I don't mean this in a derogatory way) usually don't have the necessary experience to put a price on their work. Some way undervalue hoping that low prices will bring a rainfall, some way overvalue their work. Also in pricing a product, the amount of work put in is not always a guarantee that it will sell. The "wow" factor is usually what correlates to the bigger sales.

  • nicsttnicstt Posts: 11,715
    edited August 2017
    Havos said:
    nicstt said:

    I had two considerations.

     - A return on time invested.

     - A fair price.

    As a new PA, I've no idea if I've found the right balance.

    Whilst number 1 maybe important for the PA, it is irrelevant for the client. They will buy something if they feel it is worth the money, they will not pay more depending on how long the creator needed. As such you only should consider the price "the market will bear", and thus do as daywalker03 suggests and look at the price of similar products.

     

    Is it? PAs won't make a product if it doesn't sell.

    There are many who bemoan the fact there are fewer male products, that is why - at least in part. So it matters to both parties, it is just less obvious.

    I was also answering the OP's question, "how I decided the price".

    Post edited by nicstt on
  • Oso3DOso3D Posts: 15,100

    Nicstt: Sure, except almost everything in this is guesswork with moderate to wishful thinking amounts of support to make the decisions.

    PAs won't make a product if _they don't think_ it will sell. The accuracy of that... woof.

    Same thing with pricing. People guess, there are a bunch of possible metrics that vaguely suggest what good numbers are, and then... rolls the dice.

     

  • Lissa_xyzLissa_xyz Posts: 6,116
    edited August 2017
    Faveral said:

    Not necessarily unfortunately. I see products that I know are worth easily double or triple what they sell for and I also see some offered at double or triple what they are worth. There are only a few professional PAs who really can't afford to miss the mark and who really work at getting the right price for the value of their work. The hobbyists (and I don't mean this in a derogatory way) usually don't have the necessary experience to put a price on their work. Some way undervalue hoping that low prices will bring a rainfall, some way overvalue their work. Also in pricing a product, the amount of work put in is not always a guarantee that it will sell. The "wow" factor is usually what correlates to the bigger sales.

    My issue is, what I'm working on, is a kit of sorts that spans across apps, so it's not a character, or clothing, etc. I've seen discussions about ways to achieve what I'm pulling off, but I don't know if that's the minority speaking. My guess is just to put these finishing touches on, submit the idea to daz, see what happens, and roll with the punches.

    Post edited by Lissa_xyz on
Sign In or Register to comment.