Origins #77 - New pricing structure and starting to think about collection No. 2
Excited to apply all the lesson from No. 1 to No. 2
In this series we are documenting the journey of building DULO, starting from Day 1. Every week we publish a new chapter that takes you behind the scenes of our process. With every article, we want to provide value to you, the reader. We share the success and failures, the opportunities and the challenges that we face while executing our vision.
If you are new, check out our previous post.
One of the biggest benefits of being self-funded (answering only to ourselves) is that we can make decisions very quickly and test/experiment with a lot of variables from our process, as well as our products.
This week we decided to test out reducing the price point of our product by a little bit while removing the free worldwide delivery and make it scalable according to where an order needs to be shipped to.
In this post, I want to lay out our thinking behind these changes, tell you what we changed exactly and how we think about the next steps.
- We still have some inventory left and given that our one year anniversary of launching the webshop is approaching, having the same model of the shirt for one year without any new additions seems to be too long of a time, hence we want to start clearing the inventory at a faster pace and start preparing for the next batch.
- We already began talks with our manufacturer to start working on the second collection, which we will approach a little bit different than the first one, but more details in a future post ;) So, we need to maximize revenue generation in order to finance the second collection.
What we changed
- We dropped the price of our shirts from €95 to €65 but removed the free worldwide delivery. Our delivery costs are now: €5 for orders from the Netherlands, €10 for orders from Europe and €20 for standard shipping and €70 for express shipping for orders from the US.
This change is also a good opportunity to test and compare how people perceive the value of the product and whether/how that influences their buying decision. The price point overall is a bit lower, especially when ordering more than 1 shirt, but then again, we don't have any investor KPIs (key performance indicators) to hit, we just want to create products that people enjoy while building a profitable business.
We've already had a few shirts sold with the new price structure and people seem to be happy with it. We're also happy as we will be able to get more products to people sooner, clear out the inventory faster and start preparing the process as well as the financials for our second collection.
We're excited to take the lessons from the first batch and apply all the learnings to the second one. The main focus will be iterating on the fabric, the model of the shirts, as well as the quantity and size/model variables we want to produce next.
We are especially excited about the possibilities of using lighter and more sustainable fabrics for our next iteration, more information to follow as we are currently researching the options ;)
Thoughts? Any feedback is greatly appreciated!