How do you DETERMINE PRICING?
Finding a good balance of competitive pricing, profitability, and value can be tricky.
Here is how spots for our breaks are typically priced.
If a product has a high mark-up, we try to keep prices at or less than the current market price for a sealed case. If a product has a low mark-up, spots will be priced higher because we can't make profit from selling spots at 10% above cost while paying $0.30 + 2.9% per transaction in Paypal fees and an average of $3.60 per package in shipping fees, not to mention the cost of supplies, prizes, and rebates. We currently do about 25 breaks a month. That means we need to clear, at the very least, 4% of our monthly operating costs per break.
We start pricing by determining the gross sales we need from the case. When a checklist is released, each team's cards are reviewed to assign a value to that spot. This is determined by assigning a percentage of the target gross sales from the case to that team spot.
In 2018 Topps Heritage High Number Baseball (market price: $1,449; target gross sales: $1,425.00), the Boston Red Sox have 9 base cards (1 rookie), 1 short-print, 2 chrome, and 3 minis. The autographs for the team are: Andrew Benintendi, David Ortiz/Rafael Devers (dual) Real One Autographs; Benintendi & Dustin Pedroia Clubhouse Collection Autographs. The Red Sox also have 5 relics and 6 inserts on the checklist. Based on the value of the checklist, we have determined that the team spot is worth approximately 3.25% of the target gross sales from the entire case. This is approximately $47.00, which is our final price on the spot. A pricing comparison on other sites revealed the spot listed as high as $80, but this looks to be based more on the team's popularity in the hobby and pricing trends than on the actual value of the spot for this particular product.
This doesn't mean we're always going to have the lowest prices. Sometimes we random one of the top/most expensive spots to add incentive to purchase all other spots. We're probably going to be higher than most breakers on the New York Mets spot in that same break because its checklist is very strong. The Mets have 8 base cards (2 rookies), 2 short-prints, 2 chrome, 2 minis. Autographs include: Amed Rosario, Noah Syndergaard Real One Autographs; Nolan Ryan/Tom Seaver and Rosario/Syndergaard dual autographs. Additionally, there are six Amazin' Mets (including Nolan) autographed cards each numbered to 69, a Rosario relic auto, and Tug McGraw 1/1 cut autograph on the checklist. They also have 4 relics, and 14 inserts (including an Amazin' Mets insert set).
Here is how the pricing spreadsheet looks after we review the checklist: