What is the best way to set prices?

BrickWerks

Hi I am a new store in the process of uploading a few thousand parts to get started. I have been using the 6 month price average to help guide my prices. How accurate is this price? Is this a good measure? Any advice would be appreciated, as I loading new parts this evening.

Jay37

I personally use the 6 month average as I believe it gives a reasonable idea of sold prices (therefore giving you a better chance of selling at that price also). Technically there is nothing stopping you from setting your own prices but a degree of common sense should be applied. For example you could charge $100 for a single, standard Technic pin, but I would think you're unlikely to sell any! Be aware that if a part hasn't sold in the last six months the price will default to 99.00, and you will have to manually set a price. I do this through a combination of checking for any sale price longer than six months, an average price based on any other parts listed for sale and BL pricing (both current and historical).

BrickWerks

Thanks Jay, I actually uploading parts at 20% below the 6 month average for new parts and 25% below for used parts. Hopefully, just loading more parts will work. Still looking for my first sale.

White Horse Bricks

If everyone did that, then over time the average would continually decrease until there would be no margin.

Calibrick

Don't worry, @BrickWerks - once you have enough variety to pop up based on wishlists or list a rarer item that's in demand, you'll start seeing your first sales, I promise! Hang in there. :-)

WESTIEKATH

Personally I try to use the 6 month average. If we start putting the prices lower and lower just to be the cheapest there will be little or no margin of profit. I feel as long as we are all in line with each other orders will come in.

tons_of_bricks

I see @White Horse Bricks and @WESTIEKATH 's logic, but I think as a newer store, @BrickWerks should put his pieces under the average to get attention and build feedback. If I'm looking for a piece, and two sellers are selling it for the exact same price, one with 0 feedback and another with 1000, I personally am going to feel better buying from the 1000 fb store. Once he gets established as a reputable seller, than he can increase his prices.

My $0.02.

Oldfan

Ah, the free market at work! Having different sellers with different strategies at play makes for a great buying experience, as we can get the parts we need for the prices we wish to pay (either rock-bottom per-piece pricing or buying lots of different parts from the same seller to save on shipping costs). I imagine there's room for everyone on this marketplace...

WESTIEKATH

@firestar246 - ah yes to be fair I didnt actually think of that - good point!!
@Oldfan yes I am sure there is enough room for everyone
Stay safe all

BrickWerks

I thought I say something that you can import feedback from other sites to increase your feedback, is that right?

White Horse Bricks

Yes, it lasts for a year to help you get your foot in the door. Message Lawrence with a link to your other feedback.

White Horse Bricks

I have just looked at your store. To be honest I don't think it is down to pricing or feedback.

You simply don't have a big enough range to feature on many people's wish lists. If you carry on adding parts regularly I'm sure the sales will come through.

LegoDk

Most of what you need is being better than the other stores. We can not decide how you want to stand out You could focus on only star wars for example, the more unique your store is the better chance of selling.
I would not suggest starting selling new lego as it limits to so few sets and these bricks get hammered down in price very quickly.
If i would had to start over again i would only focus on used lego and only minifigs and equipment. This stuff is always in demand, and even the big stores struggle getting enough of it as it just gets ripped of the shelves.

Also do not set any limits as a new store, you need feedback so if you can get a good feedback from selling 1 piece you should do that.

This is just my personal opinion, been building on our store for 3 years now and the more you grow the more orders you get. You do not want 30 orders a day though if you are alone, so there comes in the pricing or lot limit. Raise your prices to a level where you make a good profit and get the orders per day you want But for the start, sell cheap, ship fast, pack well.

Geert Middelman

Since my sales went up like crazy over the last few months, I increased my prices to be quite a bit above average. Still selling like crazy. I strongly believe your inventory (both breadth (lots) and depths (volume per lot) has a way stronger influence on your sales than prices.