Can $5 Cause Sticker Shock

This past Saturday I did some volunteering for a organization called the PEO. They were running a rummage sale to raise money to sponsor scholarships for women perusing a college education. The woman in charge was named Heather and she priced everything herself. They were selling everything from Jewelry to fishing equipment. However, the most expensive item at the sale was only about $50. A lot of the items were of decent quality and it surprised me that they were only being sold for 3 or 5 dollars. To me these seemed like great deals.

What shocked me was peoples’ unwillingness to pay even these extremely reduced rates. What was even more shocking was the types of ploys people attempted to get the prices reduced. The rummage sale items were all donated, so obviously they were not in perfect condition. However, this did not stop the customers from bargaining a $1 item down to 50 cents. Also, I watched as people would switch $5 price tags on the items they wanted with lesser value price tags from other items. I even overheard people complaining about how some of the items were over priced. The entire experienced amazed me. I was thinking about how in any other establishment that sold items like these prices would with no doubt be in the double digits and no one would bat an eyelash over it.

I couldn’t fathom how these people were getting sticker shock over such low prices. Then it occurred to me that their perception of the sale changed their willingness to spend money. They did not see the rummage sale as a legitimate business. The woman in charge, Heather, handle all of the situations with a lot of grace. It really made the point to me of how important it is to find out what the customer’s frame of reference is before you give your prices. Just because something is discounted or inexpensive doesn’t mean people will value the bargain. It is good to find out what people are willing to pay and make sure you, as the seller are not being taken advantage of.