How Much Would You Pay For An OB Hive?

JordanM · January 29, 2009, 08:37:37 PM

What is the maximum you would pay for an ob hive? Brand new 4 deep frame tuntable top style with turned poles at the end exactly like Drapers Standard Oak Observation Hive:
http://www.draperbee.com/catalog/page7.htm#OBSERVATION%20HIVES

HAB · January 29, 2009, 08:53:04 PM

We really enjoy Building as much of our Beeking materials as possible. For us that's half the fun. :)
So for us to spend much on one it would have to be a really nice one at a very low price. :-D

buzzbee · January 30, 2009, 09:24:25 PM

What are you really trying to figure out?
You asked if any one would pay 500 here:

http://forum.beemaster.com/index.php/topic,19510.0.html

BjornBee · January 31, 2009, 08:32:00 AM

I think he is trying to find out what people think is a good price for the mentioned O.H.

If Draper's sells one for 580, and they do, how many people think $580 is way too much? I bet most. So the next best question is, "what would be a good price?".

Although such a question IMO would be considered flawed by an open question such as this, it is market research. Jordan is young. Such questions and feedback are part of a growing entrepreneurs mind, allows insight both good and bad, and I'm sure answers many questions.

Jordan,
For a true price, you need to have a well advertised product, without manipulation of the market, and buyers with need or desire.

Like a good advertised auction on a Saturday morning on the farm, you need all those items to come together, to get a true pricing quote. What you do not have, and never will by asking such questions on a forum, is a group of buyers with need or desire. Your asking non-buyers, with no need or desire, to make quotes on a product they are not going to buy. You will not get a true sense of what these are worth.

One of two things will happen....

1) You need to price these low enough to "create" the need and desire. (If you asked how many would buy this at $50...many would. But that is not what you want)

2) You need to allow the market to dictate price by some selling vehicle such as ebay, etc. This at least fits the part of a large marketed and advertised group. Then you need at least two people with the need or desire, without manipulation, to honestly bid and allow the market to dictate the price.

Many producers will choose #1 above, and will not last in the market. Option #2, is the best, but involves advertising, quality, reputation, and many other factors. Just as some will buy a higher priced queen from one breeder, why would they not from the next? Regardless of the product, pricing is based on many things. Work hard, and build your business correctly, you will sell at higher prices. Selling without much more than pricing, and your guaranteed to be the lowest person on the corner selling their wares, and will make the least amount of profit.

There is a third option, and is the hardest one...and the one you are seeking by your questions. That is...if you produce 10 units per year, how do I find the 10 buyers willing to spend the most on this product? What price would insure I sell all ten units, but also price them to make the most money? And this is also the one that many have personal demons about in their own heads. I know if I put my queens up to 25 dollars, I will probably still sell out. Afterall, I will turn many orders down this year. Supply and demand almost dictates that a short supply and large demand will cause price to go up. But it is natural to want to be "fair" and be reasonably priced, to question "will all my product get sold if I increase my price", and "will people see my product worthy of such a price", and so on. As I lower my price, more customers will call, As my price goes up, less customers will call. So where is that intersection where I sell all my product for the highest price? All business people go through that. Am I willing to work harder at advertising and promotion to find the highest paying customers for my product and make the most profit? Or can I work less, and sell out more easily if selling for less?

Beekeepers are a niche market. Observation hives is even a more niche market. Only so many people will buy a observation hive this year. So finding that sliver of the market will be tricky. And the best way of doing that to find your pricing may be to throw a couple units out into the market and see what they go for. You can always go lower, but much harder to go up. Start at a fair price. You only need to find one buyer per unit. Good luck!

iddee · January 31, 2009, 09:29:03 AM

Bjorn, that was very written, truthful, and "matter of fact". Thank you for investing the time and effort in helping one of our youths. It was very kind of you.

Jordan, print that post and put it on your wall. I"m sure you will be reviewing it for many years.

JordanM · February 01, 2009, 06:47:38 PM

Thank you so much Bjorn that is a very nice post and has answered many of my questions. I will tell everyone once i get one done and get it on EBAY and see what it goes for.

Thanks again

HAB · February 01, 2009, 07:13:11 PM

Quote from: JordanM on February 01, 2009, 06:47:38 PM
Thank you so much Bjorn that is a very nice post and has answered many of my questions. I will tell everyone once i get one done and get it on EBAY and see what it goes for.

Thanks again

Looking forward to it! Got my Ebay account on standby.

Ross · February 03, 2009, 09:07:07 PM

I build my own....
http://www.myoldtools.com/OBhive.htm

JordanM · February 03, 2009, 09:50:26 PM

Thats a big one Ross.

BULLSEYE BILL · February 03, 2009, 11:27:01 PM

I made my own too. We had a large black walnut tree from our farm sawed into planks and dried. I used that wood and the plans John mentioned that are in the build it section over on BeeSource.

It's beautiful and I really enjoy my BEE-TV.

Hey Jordan, did your folks ever let you drill that hole in the wall?

JordanM · February 04, 2009, 05:48:19 PM

Im working on them bill my mom doesnt like that idea but i think my dads going along with me. :evil: :-D