If you price Craigslist stuff right it will sell in less than 3 days
I’ve always been amazed at the power of pricing something right on Craigslist.
When I price something too high I don’t get many calls or the ones I do want to dicker with you. If I price something too cheap I get inundated with phone calls and people racing to meet you to buy your stuff you don’t want anymore. If I price something JUST right, it sells in about 1-3 days and the buyer doesn’t try to offer you less money.
I’m always wondering what the best price is for our services. And you should too. The Craigslist scenario happens online every day and you have to wonder if your pricing is spot on. If you price your service too cheap you may get more people, but you may not actually make money. If you price it too high each sale may be more profitable but you won’t get as many sales. If you price it just right… you should have a steady stream of manageable good sales. This is SO much more important than a couple sentences of a random blog post. This could equate to millions of dollars in sales or missing sales each year.
I recently sold a desk on Craigslist for 50 bucks. I posted it at about 10 o clock at night and the next morning I woke up to nonstop phone calls and people clamoring to get to my place to buy it. So in that scenario 50 bucks was too cheap. I was happy to get rid of it, but I probably could have put it at 75 or 80 and sold it just the same. The thing that I’m always fascinated with in business is what price could you have gotten where you would have gotten the exact same sale anyway without offering it for less. I see one of my competitors lose out on thousands of dollars by offering their services cheaper than their main website on proxy websites selling the same thing for cheaper.
The real question on the desk and my competitor’s strategy is if I put the desk at 60 bucks would it have sold in one day. If I put it at 75 bucks would people have wanted to negotiate on the price, would they have valued the desk more because it was more expensive, and would I still have gotten 100% of the sales opportunities because there weren’t any cheaper options? If I put it at 100 bucks would someone just have not called, or more importantly if there wasn’t another desk available, would they have looked for a day and still paid me 100 bucks. If I put it at $150 would someone have thought the desk was the most amazing desk they had ever seen online and wanted to buy it because they thought it was the best if it was $150. That’s why I think if you sell something on Craigslist in 1 day you basically priced it too cheap. This isn’t the case with business. You obviously want people signing up the same day they see you… but you can see the importance and the conflict of pricing what you sell.