Item prices vs. shipping cost (local warehouses!)

Here is an example of what I'm trying to get at.

Say you are in the market for a bag of fish heads. Let's also say that you are in the market for a bag of my particular fish heads, specifically to imply exclusivity of product.

I could sell you a bag of my fish heads for $5 plus $10 shipping and still make a tidy profit, but since I want to put a bullet on the value of my product I think I'll sell the fish heads for $3, plus $12 shipping and handling, plus $5 extra because WTWUK doesn't care.

It still repesents the absolute best value you are going to find in genuine "Johnwohl's Discarded Fish Heads" because I've got the market cornered.

Let's add another $2 because I need a soda and WTWUK doesn't care as long as they are the best fish heads discarded by your's truly. Which they are. I promise.

So now you've got a $22 bag of $3 fish heads, which is totally worth it, I swear.

You can't get a $22 bag of my fish heads at your LHS now can you? No? Good.

Now say you find out that instead of shipping you the worlds most specific fish heads from halfway around the globe, I could get them to you for $3 (fish heads), plus $7 (actual s&h plus WTWUK doesn't give a crap tax), for a total of $10 for a $3 bag of my fish heads.

At that point, what is the best value for $3 discarded fish heads? $10 or $20?

I'm just saying that personally, I'd like to pay $10 for my $3 bag of fish heads if at all possible, and I'm sure other people would too.

Of course they are my fish heads, so I could have them for free, but I digress.

"specifically to imply exclusivity of product." and "because I've got the market cornered" has totally moved the goalposts.

And drop the attitude that i 'dont care' .....

If you are the only one that has them for sale, I will pay whatever you are asking, in whatever way you ask, if I want or need them. If I need them, I will pay $100 shipping and product for free!

However, if they are not an exclusive product, and your competitor has them and prices them at $1 and $98 shipping, he gets the sale.

I save $1, your competitor gets his money, you get nothing.

Now, you catch on to this - and do your heads at $96 plus $1 shipping (or be naughty and do the heads at $1 and $96 shipping) - either way, you get the sale. I get them for £97 and save another $1 you get your money, your competitor gets nothing. Me happy, you happy.
It is all about overall cost. And of course, in reality I would really like to get your fish heads and your competitors fish heads for $10 all in ... Durrrrrrr!!!!!

As for the toolbox - once in the USA it will weigh in at 1400g rather than the 999g it is in Hing Kong ... so it will now set you back $40 .... heh heh!!!

Edited by WTWUK - 11/Jun/2012 at 11:00pm

Originally posted by WTWUK "specifically to imply exclusivity of product." and "because I've got the market cornered" has totally moved the goalposts. And drop the attitude that i 'dont care' ..... If you are the only one that has them for sale, I will pay whatever you are asking, in whatever way you ask, if I want or need them. If I need them, I will pay $100 shipping and product for free! However, if they are not an exclusive product, and your competitor has them and prices them at $1 and $98 shipping, he gets the sale. I save $1, your competitor gets his money, you get nothing. Now, you catch on to this - and do your heads at $96 plus $1 shipping (or be naughty and do the heads at $1 and $96 shipping) - either way, you get the sale. I get them for £97 and save another $1 you get your money, your competitor gets nothing. Me happy, you happy. It is all about overall cost. And of course, in reality I would really like to get your fish heads and your competitors fish heads for $10 all in ... Durrrrrrr!!!!! As for the toolbox - once in the USA it will weigh in at 1400g rather than the 999g it is in Hing Kong ... so it will now set you back $40 .... heh heh!!!

I was just screwing around. Sarcasm is difficult on the internet.

Maybe if you had some rare disease that could only be kept at bay by my discarded fish heads, they might be worth $97, but we are only talking about desired fish heads.

At some point you have to look objectively at a $3 bag of of fish heads and say to yourself "self, can I really justify spending $20 for $3 worth of fish heads? I mean, they're just fish heads." Let's say that you are a sane person and decide that $20 is just too much for maaaaybe $3 worth of fish heads. I know, there are some people who really gotta have those fish heads, at any price, but lets assume we are normal people.

What if those same fish heads were available at $10, in half the time. Those fish heads that you passed up at $20 just became a lot more attractive at $10.

So at $20, sure you have a few discarded fish head afficianados who are willing to pay that much of a premium for those heads, but a probably a larger number who will decide to go somewhere else or forego fish heads altogether if for some reason I was the only supplier of fish heads.

If you can sell the fish heads for the same price, with a lower shipping cost, making the total cost $10, my guess is that a lot of the people who wanted fish heads but not bad enough to warrant emotional fish head fever overspending, will go ahead and purchase some heads, tell their friends about the wonderful fish head experience, and all of the fish head gourmets will get their fish heads as well, at a reduced price.

of course fish head hipsters might not buy the heads at a reduced price. too mainstream.

I understand what you are getting at, but i'm saying that a $3 bag of fish heads is still a $3 bag of fish heads at the end of the day and $20 might be too much, even though it's mostly shipping. You can't hold shipping in your hand. You can hold fish heads in your hand, but I don't recommend it.

Get those fish heads into the local warehouses, and we're in business.

I would go and buy the trawler to source my own fish and keep the heads. Heh heh!

In all seriousness, if we are looking at the same toolbox, it aint worth 30 greenbacks, but, if its the only one that will do the job, the seller calls the shots.

The Kiwi way , get out and make it yourself.