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Good Pricing Procedures (RR)

SPlDEYSPlDEY Vegas 3,375 Posts
edited August 2006 in Strut Central
Alrighty, since I've spent the last 3 days pricing records. I would like to understand what you all consider good pricing. The record store I'm working for "The High End Mystery Emporium," is fairly new, and the pricing process started like this. ..looks at record, how much would I pay for this record?Then, I told them, they might want to use ebay auctions and popsike. So, the order I priced was like this Popsike, Ebay completed auctions, Records by Mail, then Gemm. It's obvious the hustle people try to pull on gemm, then there's some decent prices here and there. I would get rid of the monkey price, take the highest normal price that matches the lp, and then take away dollars due to record condition?This wasn't for every LP, just a few select LP's we weren't sure of the value. Good, bad, ugly? I already posted this off topic in the Record store horror story thread- spidey

  Comments

  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    Online prices can be misleading, the best is to have an average from a bunch of different sites

    Don't be afraid to call or email someone

    Go with your gut

    Consider how much money you have to make (to recoup expenses and pay bills) versus how much you want (wild popsike-like profits)

    It helps to know what you're doing.
  • kidinquisitivekidinquisitive 1,627 Posts
    Sounds shakey. You'll find out if it's a good system or not soon enough. I.E., if you're not selling a high enough volume you'll have to reevaluate your strategy.
  • canonicalcanonical 2,100 Posts
    I think you really have to consider your customer. You don't want to price gauge on every record, you want to attract people to your store with fair pricing.

    Looking at popsike and gemm and subtracting a few bucks would discourage me from coming to your store. Why wouldn't I then just sit at home and buy from the comfort of my computer chair?

    I think a fair way to price is to consider those avenues (popsike, gemm, completed auctions) and then chop a larger price from there. So, if some record sold 3-4 times on popsike for $60, I'd probalby try to sell it for $45. Yes, you're missing no $15, but big deal, you'll likely get a repeat customer.

    My friend and local dealer prices gemm divided by 5 and sometimes a little more. And, I buy a lot of stuff from him. He prices things so that I come back, not so he can squeeze every penny out of me.
  • SPlDEYSPlDEY Vegas 3,375 Posts
    Okie, well.. to me it sounds like we're not doing too bad of a job. Again, the way we are doing it is for select records we are getting an average from online sites, and then pricing down. I just know there's much debate on this. Bottom line is we're going to have to work out the kinks, as people buy. I think the prices are pretty decent, compared to a couple other stores out here. If we let a few rares fall through the cracks we're not tripping.

    - spidey
  • kidinquisitivekidinquisitive 1,627 Posts
    Where's this store at again?
  • SPlDEYSPlDEY Vegas 3,375 Posts
    I'm going to do a bigger post on the store soon as i get some pictures up on flickr. But the store's in Vegas, and it just opened last friday.

    - spidey
  • RockadelicRockadelic Out Digging 13,993 Posts
    So, if some record sold 3-4 times on popsike for $60, I'd probalby try to sell it for $45. Yes, you're missing no $15, but big deal, you'll likely get a repeat customer.


    To me this is the key....this and replenishing stock.

    You have to give folks a reason to leave their house and come to your store instead of just buying on ebay.

    The fact you're in Vegas is a big plus as you'll have lots of out of town visitors(I hit the Vegas shops usually 2 times a year).

    For the locals have a New Arrival section to make their visit more pleasure and less work.

    Diversify....if you are opening a store to deal in one style and only one style of music it's gonna be tough.

    Be willing to give discounts on larger purchases and like Jonny said, don't hesitate to call or email folks to obtain price info...I do it and other folks do it to me.

    But MOST importantly the key is as Mr. Paycheck says...'Know what the hell you're doing!!!:"
  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
    Yeah also I would take the whole "price $20 below the lowest popsike price" thing with a grain of salt. You are talking to a board of (mostly) buyers who are somewhat thrifty. This is where you have to know what you're doing. Know what you can get for a record, and what's unrealistic in your market.

    Big records are pretty tough to find... and if you put them all out for half of going rate you will wind up with a wack shop with the same old $5 and $10 records. Unless you're sitting on an untold stash of raers, that is.

    It is good to throw a bone out there sometimes for your customers, that is for sure. There are a million ways to earn repeat customers, and pricing is just one of them.

    But if you go too cheap, a motherfucker like me or a posse of Japanese dudes will rob you blind and you will be stuck.
  • GenePontecorvoGenePontecorvo 5,612 Posts


    For the locals have a New Arrival section to make their visit more pleasure and less work.

    Please to do this. at stores w/ no New Arrivals that make you look through everything, every time.

    D, can't wait to check out the new digs. Best of luck!
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