Subject: Re: pricing

From: [email-masked]
Date: Mon, 25 Mar 1996 16:10:42 -0500

In a message dated 96-03-25 14:54:21 EST, [email-masked] (Roger Olsen)
writes:

>teachers in
>georgia make vs. idaho or texas, and all other lines of work as well, it
>would be interesting to hear a few samples from around the country of what
>blacksmith shops charge per hour for shop time,

Roger:  It isn't so important to know what other shops charge so much as it
is to know what your after costs profits are.  That's the key element to
focus on.  Some shops need to charge what we may think are very high rates
but the profit margin may be actually very close to that of another shop
charging less but making more.  This is the result of the cost/price ratio
which is what makes one shop more competitive in the open market than
another.

When you hear of shops or individuals getting premium prices for their work,
and you don't see the relationship between the cost/profit ratio, then you'll
have to consider the premium value that is bestowed upon that shop or
individual based on the power of the name.  That name and it's inherent
value, is something earned and regardless of whether one feels that the work
is overrated over another's, or not, it doesn't really matter.  The clients
for that particular work are acquiring an intangible that they believe has
value. 

To have that same position for yourself means that you have to work on the
perception of extra value towards your work, and that means flogging your
stuff or promoting it in the open marketplace.  If we don't care to do that,
then we can't expect the same regard towards our work as the others have, no
matter what the quality is.  It's a misconception to think that our work will
stand alone on it's merits, that is only a small part of the equation.

In this country perhaps more than elsewhere, it's the image that has the most
value not quality.  Think about the worth of all those plastic sports shoes,
do you really think people are paying what they do because they are worth the
price of a good pair of leather ones?  There is a different reality that
hasn't entered into these discussions and that reality may be uncomfortable
for some folks, but regardless, it's still there and isn't going to go away. 

 So if you want a good piece of work to be in the same league as a premium
priced work, then you'll have to rethink your marketing strategy.   The
alternative is to accept the fact that you can sleep well at night, and still
make a decent profit with or without personal or professional compromise.
 It's your choice.  And hey...I'm not the cynic here, it's just the way
things are, that's all.
Chris Ray