@gjs_16 wrote:
@postingid7659 wrote:Sometimes I'm amazed by the advice people give on these boards. Raise prices? How's that going to help? All that will do is make the listings uncompetitive with other sellers and the sales will go down, which will likely extend the below standard period.
Actually, raising prices allows the seller to get out of below standard.
You get out of the defect problem by selling less, not more.
And if you don't believe that, the cost of disbelief is 5%.
You're going to have to show me the math on that statement. Selling less would mean each defect would become a larger percentage of the total sales, increasing the defect problem, not reducing it.
5 defects out of 100 transactions is a 5% defect rate.
5 defects out of 50 transactions is a 10% defect rate.
5 defects out of 200 transactions is a 2.5% defect rate.
To get out of the defect surcharge, you have to generate MORE sales, not less. This is a good reason for adding low cost, easy to ship items to your mix -- get buyers to purchase a lot of those and you can increase your sales and clear out of the defect surcharge sooner.
-Bob.
@lightlily_arts wrote:Raising the price by 5% to capture the loss of increased fees is very small and not likely to make a huge difference to anyone but the seller. Exactly how would raising prices extend the below standard period?
Raising prices generally slows sales, unless everyone else is also raising prices by the same amount. Slower sales mean each defect becomes a larger percentage of the total sales (see my previous post).
-Bob.
