The other day at the grocery store, I hesitated when spending almost a dollar on a packet of my favorite French vanilla cocoa mix. But while I was there, I couldn’t help thinking that at Starbucks, I don’t bat an eye at spending over $5 for my soy vanilla spice latte.
In the grocery store, where the place is designed to make me super aware of price and “bargains”, I hesitate. At Starbucks, where the atmosphere is designed to make me feel comfortable and a little indulgent, I happily hand over my card every single time.
As someone who makes artisan products, I want my brand to resonate on the Starbucks side. Yet I see so many makers whose supporting materials (display, fixtures, sales presentation, etc.) are more like the maker equivalent of the grocery store.
Creating more freedom in your business comes from being able to charge more. And being able to charge more comes from your brand.
Everything in my trade show booth is meant to tell you that I am not a bargain brand. The walls, the paint color, the custom display fixtures, the way I display the work itself, what I wear, and how I style myself. Before someone even walks into my booth, they know that I’m not cheap.
When I tell someone to raise their prices, I often hear that “people won’t pay” or that “the market won’t support that.” But the truth is that’s it’s likely that their brand won’t support higher prices. Building the brand takes work, and it’s definitely easier to blame outside forces for price resistance.
It’s the whole package (your brand), not just your products, that tell people how much to value your work. And if your package screams “cheap and easy,” people won’t value your work very much.
I work in very inexpensive materials, especially for the jewelry industry. But that doesn’t mean I can’t style my brand to appear higher end. In the context of the whole package I’ve built, even my materials seem richer.
It’s not a coincidence that the clearer I’ve gotten with my brand, the less price resistance I’ve gotten. When it comes to price, context is everything.
Building a brand takes work. It takes a clear aesthetic vision, strong messaging, and well considered details repeated over and over again. But the payoff is huge. The stronger your brand, the more you can charge for the work you make. And the more you can charge, the more free you are to create more of your best work.
Having a strong brand is the difference between slinging cans at the grocery store or artfully crafting lattes for your customers. Which would you rather do?
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Need help figuring out where your prices should fall? Check out my digital workshop Pricing for Profit!
What a great post! I’m just about to open a new online store and knew I didn’t want to compete on price. This post has given me lots of inspiration to create a great brand, thanks Megan : )
I really liked this post…gave me some great food for thought! I’ve known this on some level for a while, as I was always so shocked at how much Nordstrom would charge for the costume jewelry they carry. Being in the jewelry business, I know how much those materials are. But because it’s a high-end store like Nordstrom, people will gladly hand over their cards. Thanks so much for this Megan-love it!
Both links are down (tradeshow booth and Studio – I’m using Firefox) – 10:13AM PST
Steven – I just checked the links, and they’re both working.
Working now.
Hey Megan,
You continue to make the issue of pricing crystal clear! Thanks for illuminating yet another aspect of this. I continue to see how branding, marketing, blogging are all driven from the same mission that moves us to create something in the first place. Thank you!
Excellent post! I was certainly struck by this very thought as I walked through the BMAC show. The range in the branding on display was wide, and the prices totally correlated.
I keep having conversations with other artists who are exploring how to cut their prices to compete, and I always feel like I’m going the other direction when I explain that I’m looking instead for ways to justify my higher prices.
That is an awesome perspective, something all of us should keep at the forefront of our minds, when creating our work! Thank you for writing this post. I’ll definitely link to it on my blog! I’m always trying to share what I’m learning, and I think you for doing the same Megan!
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Wow..
Absolutely fantastic post, Megan. Perfectly executed metaphor for what everyone in the handmade world deals with on a regular basis. Nicely done.
I’m so glad I stumbled on to your post! This is exactly what my husband and I are struggling with right now. We raise gourmet popcorn kernels, and we struggle with grocery store vs. gourmet/specialty food shop. Your post just confirms how I feel. People will pay more for beautifully branded items. Just what I needed to read to help keep me movitated. Thanks!
One can learn the same lesson from Anthropologie. In the scheme of things their products aren’t really that special but they are promoting a lifestyle so you expect high prices.
Retailers mostly have the same stuff, imported from the same factories in China but in the world of marketing to a clientele with disposable income, presentation is everything.
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Excellent post Megan. Pricing products too low is an age-old problem for most professional crafters. For some reason, they don’t realize how valuable there time really is! And of course, positioning (liked you talked about in your article) packaging, and presentation is alot of it, as well.
For anyone who is interested, I have a free email course on Pricing Your Products that may be helpful. You can sign up for it here: http://www.selltogiftshops.com/
Sandy Dell
‘GiftRepSandy’
Great post! I just came across your site today and love the wonderful tips you have.
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