Lowering prices - do I refund customers?

[Former_Member]

So I raised prices in February to cover gas to pick up prints (25 miles to the printer...). Now that I've made some more sales I've been setting up an office and ordering inventory so I won't have to make trips to the printers anymore. I'm going to lower prices, as I don't need to cover gas, but am worried customers will come back and see the change in prices and be upset -and maybe even leave bad feedback.

I was thinking of refunding customers who ordered a week before I make the change the difference. Or maybe two weeks?

Are there any thoughts or advice on how to handle this? I'd really appreciate it, and am really not sure of what to do.

[Former_Member]

I wouldnt do anything, if target lowered there prices because it wasnt costing them as much anymore they certainly wouldnt refund you the difference,

i mean the customer would definatly remember you for a while and may tell someone about the experiance... but i still wouldnt, just my opinion though.

good luck :)

[Former_Member]

That's so funny you mentioned Target! Target refunds the price difference if something you buy goes on sale within two weeks and you bring in the receipt - and I work there, which is why I thought of refunding the difference!

[Former_Member]

I wouldn't refund or lower your prices, if you are selling at your current price point. There are still expenses that you will need to take care of so leave the pricing alone so you have a contingcy plan for emergencies and stuff. I think it will confuse your buyers to do it

[Former_Member]

If I were in your shoes I would probably write a little note under your shop announcement stating something along the lines that you have "good news" "as production costs have gone down, you are happy to offer new lower prices" and that if any one has any questions to please contact you. Just a thought if you are worried about someone being upset about paying a higher price. At least that would give them an opportunity to contact you first - and you wouldn't have to worry about having disappointed customers - or negative feedback :)

hope that helps :)

[Former_Member]

I don't think I've heard of many sellers who refunded their customers for lowering prices. I've lowered my prices on some items and raised on others, but I didn't consider refunds because it was between a space of a sale and no sales.

I'm definitely interested in seeing some more remarks on this! :)

[Former_Member]

That is considerate, however if you are getting sales at the price point you are at...I would not change it. Good luck!

[Former_Member]

You know if previous buyers were happy with their purchases came back and saw lower prices, they just may say "hey great, now I can buy another!" No, I wouldn't refund. They paid what they thought was a fair price and they got their stuff and are presumably happy with it. Unless the price cut is drastic, they probably won't realize it anyway.

But I do have to agree with whomever said, are you sure you want to do this anyway? If it's only a little change, and your items have been selling, you don't really need to lower prices every time you save a little on costs - accept it as a savings in cost for you and use it as profit to grow your business - advertising, new packaging, whatever. Besides, without any cushion, what if your materials costs go up - are you going to raise them again? You don't want to go back and forth too many times.

[Former_Member]

@ Katie - That is a perfect way to handle it.

Thanks for everyones thoughts on this! I am selling at this point, but I do want prices to reflect actual costs, and I would still make a profit lowering them. I also like them being more affordable -as a lot of customers are students, and having a low income myself I like to set things at a price I could buy at (if that makes sense).

I think that is a great point about putting extra costs into advertising and better packaging. Maybe I won't lower them as far as I was going to, and keep a little 'wiggle' room for other expenses.

Thanks again for the help!

[Former_Member]

I think you should keep your prices the same. Lowering your prices doesn't seem to be very logical because most businesses don't do that.

If you still feel really bad about the other customers paying more and you still want to make it up to them, maybe you could just send them all a discount code? This may even it out a little bit.

[Former_Member]

Haha, that is strange, well in Australia i have never heard of our targets doing that! or any other shop here for that matter!

I think you should keep prices as they are for a while at least, and see how they go, they are still very reasonably priced :)

[Zehland]

I agree about not lowering your prices. I think it makes better business sense to leave them where they are. That way you have room to do special sales from time to time or offer "thank you" discounts to those who purchase.

Also, you don't know what unforeseen expenses will come up and you just can't keep lowering and raising and lowering. It is too confusing to try to explain things to buyers and they will not know what the value of the artwork is.

[EurekaGuides]

I don't know of many businesses that refund their customers when they have lower prices on some products. For a start, for most larger businesses, this would be an absolute nightmare and be way too much work.

It is completely normal for businesses to evolve and change and if you've bought something at a higher price, well that can be a bit annoying but I would not complain about it. That's just the way the cookie crumbles.

I too, like Kristen, have to question why you are lowering your prices? If you've managed to bring your costs down,then good for you. If you were making sales before, then why bring them down? Sometimes having your prices set too low can be detrimental to a business so please consider that.

[ParadiseChicJewelry]

I wouldn't lower them, seems like you are doing well! Even if you have a sale later on I don't think that would deter people who bought before. If I go and buy something and then come back later to buy and someone is having a sale lets say I just figure I get a sale price today! Your items are reasonable to me and very nice.

[artangel]

I'd agree with those that have suggested not lowering your prices, if
you're selling at the new price why would you?

[Former_Member]

Yeah, don't lower them. If you can lower them, they weren't high enough anyway. . .

[Former_Member]

Continually raising and lowering your prices isn't a good idea from what I've read in the Etsy blogs....I would leave your prices alone.

[Former_Member]

Thanks for everyones advice! I really appreciate it. I'm going to close my shop for the next two days while I add some new inventory and think a little more about pricing. Maybe I will bring back the discount deal I did, 2 prints for $30 instead, and offer a discount on 4 prints too.

Thanks again!

[Former_Member]

I agree with all those that have suggested not lowering your prices. It looks like your current target market is working for you.

[Former_Member]

keep the prices the same my love.