what would you do (price change question)

I already have a good idea what I am gonna do, but I am curious as to what the rest of the regulars (and not so regulars) here would do.

Here is the situation
The prim silks (body jewelry) I made seem to have just simply stopped selling, I suspect it is the price more than the quality, as I was very meticilous on the quality.
They are currently priced at 1000L and I am planning to cut that price in half and sell them for 500L, now here is my question.

Would you refund the previous buyers the 500L that they paid over the new price (since they paid 1000L) or just leave it as it is, or give them a store credit for the 500L difference in the old price and new price.

Thanks for any input.

(no I am not gonna say here what I plan to do, as that could sway the answers or influence people to think that might be the best solution)

Well you have a few options. you can rebox them in sets and keep the price, or have a random sale, or just lower the prices. You shouldn't be too concerned with previous customers. I find when I do cut prices its usually after I release a new similar product. A generational product have you. Then I cut the price on the old one. That way nobody gets offended, and then you also have a wider variety as well.

not sure why I would want to rebox it, not changing the item just lowering the price

nope, not a generational type thing, one off so far, and mainly I just do not want to offend past customers.

I would not refund any money, but the credit for previous purchasers is a nice idea. It would make me want to spend money with you . *But I did the other night anyway* I saw those items and they are definitely not lacking for quality. A price cut, or maybe a two for one deal would probably work out well.

I would just lower my price. I doubt any past customers would be upset. They decided it was worth the original price to them.

Prices change and values change as things go on.

thanks for the replies, I need to log in LOL, and price cut those puppies to 500L (I went on a suggestion of someone else for the original price, against my own judgement, and now I will put the price I wanted to put on them!!

hehe

Again, ty for the input

You have no obligation to refund the money. Any reasonable customer understand that the price of some products go down over time as they become harder to sell at the higher price.

Then again, SL consumers can get upset about strange things.

If I were you, I'd be concerned about setting a precedent with your act. If you give the customers some sort of rebate once because the price went down, they might come to expect it from you again in the future.

On the other hand, as long as the rebate wouldn't be terribly hard on you, you might be earning some goodwill from those customers who previously purchased from you (potentially good customers, if they have $1000L to spend on an item).

If you do go the route of rebating the money, you may want to write a note that goes along with it that explains that the rebate is not pursuant to a store policy on price changes, but something you decided to do to show some apprciation for your loyal customers. Something on that line. "I don't have to do this, but I am doing it anyway this one time because I value you."

And if you go with the rebate, you may want to consider doing it in a form other than "cash." If you can do a gift card, then the customer is still getting something valuable they didn't expect, but you get to still be the beneficiary of the spending.

However you deal with this particular situation, if you are concerned about it coming up again in the future, you might want to add to your store policies that prices are subject to change without notice, to make customers aware that they are not entitled to receive a rebate ever time you lower prices on an item.

You could always give a gift to those people who it bought from you the day before the price went down. I don't think it is necessary but customers will love you for it

Don't change the price.

I doubt there is much of a price elasticity issue for created items.

Rather, in your situation I'd prodigiously make more stuff, and lots of new stuff, and make sure the world knew about it.

The world loves passionate creators, and likes to see and follow them.

Go on to be the best that you can be in your biz, and don't be shy to charge. "Step up not down" - and people will come with you.

I had one item I sold that was way overpriced because I misunderstood the market. I marked it down by half. Only 2 people had actually bought the product and I refunded their money because I figured that in this case the high price wasn't a market thing but simply an error made by me. Neither of them expected it and both were amazed I'd do such a thing, so I got some positive coverage out of it But I'm not sure it would work so well for a product that has been around longer and had more customers.

I agree with Desmond, why undervalue your products? But if you are going to, you can turn it into a positive promotion opportunity! Simply send the previous customers a gift card for half the difference on future purchases (so L$250 if you are dropping 1000 to 500). That way they appreciate the gift, you won't lose as much, and if they redeem it, you'll gain more (and have them looking at your products again, perhaps with friends ).

Then you can also take a page from marketers to upsell when they contact you to redeem the cards. Maybe have a special offer ready? Like when they redeem it, offer them a special item for just L$300? They'll feel like they got a steal and you are overly generous and all their friends will wish they'd have bought one for the L$1000 price.

Thanks for the input, now that I have made my decision and followed it through I will share with you guys what I did and why....

Firstly I did not feel comfortable selling them at 1K, but I did so on good faith, and sadly they are not moving at 1K, only sold a few.
I am very proud of these items and get some very nice compliments, but let's face it, people do not like to part with their SL cash anymore than they want to part with their RL cash.

on that note, I have repriced them to the price I wanted to set them at which is 500L, and I sent out a notice to my group that I had done so, and in the notice I specified if anyone had purchased them previously I will gladly give them a 500L giftcard to the store.

Why would I do this?
1 because I did not feel right charging 1k
2 because it makes me feel better knowing I did what is to me, the right thing.
and
3 I have never dropped a price on any of my item ever, I have marked some up, but never down, so this is a first.

I do like the idea of prices subject to change without notice, I might add that to my notecards in my products.

edited to add, that by offering a giftcard I am not losing anything, by cutting my price to what I originally wanted to price it at, I am not losing anything, heck I might even gain some sales.

having them sit there at 1000L and not sell is worse than dropping my price and selling at 500L

see I do not consider it undervaluing my product as I did not feel comfortable with the price in the first place, I am now placing my own value on said item

Forget the notecard "disclaimer" thing. As I a buyer type, I'd only find it annoying, confusing, or even a little insulting (um, don't waste my time and inventory space with junk unless it's important.)

You did it a lot more than I'd expect - in the real world, I'm used to finding things on sale after I paid full price for something. :/

Using it as a customer service opportunity is a good thing. Being resolved to make it up to customers who complained, for sure. Providing something unexpected to customers who didn't care or didn't notice - golden. You'd certainly be on my "buy from" list if you were selling something that I could even remotely find useful.

um thanks I think (wonder if you are male or female and if you ever visited my store)

I did it because I just felt wrong not at least offering them something

hard to explain, but for me it just felt like the right thing to do

Me? Never been to your store. Sorry for my last sentence sounding somewhat distaining, it wasn't meant personally. I was just thinking of some stores that I buy things from just because I like them, although I do draw the line at not buying something I'd never use.

And then there are some stores, whose products I really like, but annoy the heck out of me with notecards every time I visit. If they're good, I go back anyways, but it's annoying. If I'm not familiar with their products, dropping notecards and landmarks or what not on me is likely to make me teleport out before things even res in.

I'm female, but not sure what that has to do with anything.

well I sell stuff for females, so if you were male your comment would make sense, or if you had been to my store it would have made sense as well

I do not drop notecards or landmarks on folks when they come to my store, they get a greeting from the greeter (basic welcome to the store kinda thing) and the comment from the counter to contact me if they have questions, that is it

yes your comment sounded rather disdainful and a bit arrogant, but I was thinking, well if they had been to my store and did not like the stuff, they are definitely entitled to an opinion heh

by the way, this is the item I am referring to

Sorry for the distaining note. I was thinking about other places, not yours. Never been there.

Edited note: Looks like an outfit, not just a few trinkets, so probably is worth more to folks who wear silks and stuff, as opposed to jewelry worn as simply accessories. At the risk of sounding distaining again, it's not something I would wear, but simply because I don't wear silks/dancer-type stuff.

no worries, misunderstandings happen all the time

I ask rather than assume, which to a lot of folks makes me appear paranoid and thinking everyone hates me

however I do not feel that way, just never sure how ppl mean something so ... I ask

That's a very good thing, in my book! Excellent, in fact. I'd so much rather someone ask me "what did you mean?", rather than assume. I think it's wonderful that you asked for clarification, rather than assume!

heh
thanks
and thanks for clarifying

I've only had a quick read of the comments, so forgive me if I'm repeating someone else... why not have a one week, or thereabouts, sale? Advertise in the forums, word of mouth, etc. Good opportunity to get people to be aware of your store. Even if they don't buy, they'll know your shop's there.

Make sure you stress it's for a limited time only, or else people will demand the cheap prices at a later date.

That's an argument that is hard to beat
It's the best.

I think it's a wonderful thing that you did! And if I had bought one of those silks to 1K, I would simply run back to the store with the giftcard, giggling all the way. This way your old customer get 2 silks to change between, and will probably spread the word of what you did.

And this is better service than RL... there, if we buy clothes at full price, the shop owners don't sit and worry about us who bought it already when they start their sale.

I agree about you cutting the price. I'm not a huge silks wearer, it was more full modest gowns in Gor, but I bought 2-3 silks just for fun. And I've seen a lot of shops and different silks. There are hardly any 1 K silks out there, and that's huge packs with a lot of different options.

the reason I was told, to put them at 1K is because they are exceptional workmanship and very fine detail

so I did, but for me, I am more happy knowing I have them at the 500L mark now

thanks all for the input, I definitely feel I did the right thing