What is the most effective way to price fireworks in my market?
Like many other business topics, this has a lot to do with experience and doing your homework. Believe it or not, many new sellers set their prices too low. We’ll show you why this is a bad idea, but first let’s go over some underlying principles of pricing in the fireworks market.
How to Price Fireworks in My Market: Proper Research is Key
Pricing is critical because getting it wrong could ruin everything. Ultimately, setting prices requires market awareness, which comes from learning market conditions in the fireworks business.
How do you do this?
Black Cat Fireworks recommends spending your first year in business working for another seller to really learn the ropes. While this is a very humble starting point, it’s also the best way to learn. When you work with someone else, you’ll be the rookie who they send to do reconnaissance on the competitors to see what their prices are like.
How do you scope out other fireworks retailerss’ prices without looking sneaky or rude?
If you don’t like directly walking into a competitor’s tent or store, there are other subtler ways to learn about fireworks costs. It’s easiest, nowadays, to go on the Internet or research local advertising to get a bird’s-eye-view of prevailing prices.
That being said, nothing beats looking around at your local competition to get a baseline for specific products. You’ll have to do this eventually during your career selling fireworks.
How to Price Fireworks in My Market: Don’t Sell Everything “Cheap”
The biggest mistake people make is to sell fireworks too cheap. This will hurt you a lot because you have to sell fireworks at a high enough price to cover your expense margins, which can be substantial.
For many new sellers, it might seem like a noble idea to have “the best prices in town.” However, you can price yourself out of business by giving away the house, and not be able to pay your bills, let alone turn a profit.
Knowledge of the Fireworks Market Isn’t Optional
It’s critical to have a range of price numbers in your head for just about everything you sell. The reason you have to get prices right is that the window for selling fireworks is only a couple of weeks each year. That means you don’t have the same opportunity to test different price structures. Whenever you price something too low, you won’t be able to fix the problem for an entire year.
You also have to understand the market value of each item. If something is going for $100 on the market, you can’t price it at $50 just to get rid of inventory fast.
It’s much better (and very common in our industry) to carry over some of your merchandise to next year rather than try to get rid of everything with excessive bargains. Although there may be room for discounts at certain times, focus on competitive pricing and pacing your business with the broader fireworks market.
Partner with Black Cat Fireworks for Outstanding Dealer Support
It always helps to have mentorship and guidance no matter what business you enter. Black Cat can help you master every aspect of fireworks sales, which includes proper pricing for smaller items like punks and sparklers, or large rockets and missiles, and everything else. Our expertise comes from being one of the oldest fireworks companies in America, having trademarked our brand and logo in 1952.
Now is a terrific time to leverage our experience and brand recognition to give yourself the best shot at fireworks sales success. It’s not an easy business, but it’s lucrative if you learn the basics and work hard.
If you’d like to learn even more on how to “price fireworks in my market,” then contact Black Cat anytime for further assistance.