This week I’m putting the finishing touches on my guide to pricing your products. (Follow me on Twitter if you want to be the first to know when the guide launches.)
The first part of the guide focuses on helping you calculate whether or not you’re pricing your products for profit. But the second part focuses on pricing your products based on the value they provide. And I think this is really the key to the whole mystery of pricing. Because people don’t buy based on formulas, they buy based on value.
When you’re making art, this word value can seem kind of fuzzy. Your products may not solve a specific problem. They may not make the person who buys them smarter, or richer, or thinner. But your products do provide value, even if it’s hard to articulate.
Ann Wood makes little stuffed birds. That she sells for $68 each.
Ann can charge this much because she isn’t really selling stuffed birds at all.
Ann is selling a fantasy.
Everything about Ann’s website and blog communicate the beautiful world that Ann has created. You get glimpses of her life and her apartment, and everything has this soft, almost magical aesthetic. When someone buys one of Ann’s birds, they’re doing so to buy a piece of Ann’s world. A piece of the fantasy.
And people pay a lot more for fantasy than they do for stuffed birds.
So my question to you is, what are you really selling?
Not everyone has to sell a fantasy. You might be selling a feeling, an experience, or a cause.
When you only sell a product, it’s easy for that product to become a commodity. But when you sell something more, when you sell based on the value that product provides, people will pay a lot more.
Instead of thinking of yourself as selling a product, ask what it is you’re really selling.
Instead of selling soap, are you selling cleanliness? Or health? Or a greener planet?
Instead of selling garters, are you selling romance? Or sexiness? Or confidence?
Instead of selling stationery, are you selling nostalgia? Or connection?
Think about what it is you’re really selling – an experience, a fantasy, a feeling, a cause. Because chances are people are willing to pay more for that than for your product alone.
I had a friend/customer tell me that my jewelry was heirloom quality, and that was an awesome compliment! I feel this is one of the things that my newer lockets convey and have started including the phrase family heirloom into item listings. I feel people are investing in a piece that lasts and can be passed down and cherished for generations.
I love your blog, thank you for your amazing posts!
Your post are really thought-provoking. This “challenge” causes me to re-define what it is that I REALLY am selling!
Thanks!
Awesome post! This pairs beautifully with Tara’s post today asking Why? I am in the process of redefining what I do and these questions are so helpful.
I will figure this out 🙂
and we didn’t even plan that!
My product value comes from the unique design and upcycled materials. My goal is to create beautiful accessories with re-purposed fabrics thus creating a greener planet. I reinforce the eco-friendly theme on my blog. I hope that people see the value in that when buying my products!
Oh my goodness! I love this post! I am going to think about what I’m really selling, not just jewelry. Thanks for your advice!
Love this posting, Megan. Thank you so much for writing this!
I think that you and Tara were sent down from heaven to help keep us sane and focused.
Wonderful post! I’ve been so focused on my customers story that I have neglected mine. Thank you for the nudge. <3
I find that this is the hardest thing for me to convey online. I seem to do a better job of selling feeling/experience in person.
I went to Renegade Austin over the weekend, and really took in the ambiance of as many booths as I could (with my monkey child on my back). I tried to think more like a customer instead of a vendor, and realized that some booths made me want to drop $ instantly. I’m trying to incorporate those feelings into my online “booth”. 🙂
amy –
i feel the same way! it’s one of the reasons i’m focusing so much on video, because i think it can really bridge the gap between in person selling and trying to convey that feeling or emotion through web copy.
Thank you – this is fantastic food for thought once again. I work very hard to tell a personal story within the description of my yarns and I think it goes a long way. I can only describe “blue” with so many adjectives. Its easier to just set the tone & sell an experience. I guess my customers are buying a souvenir from my wacky life in the form of yarn!
This is really helpful! I know what I’m selling: self-expression for women who everyone thinks are so nice, but have their “dark” sides (in a very light and fun way). I think they get to claim a little secret about themselves and laugh at themselves at the same time.
What a great post! I got nudged in your direction earlier today, by an online friend and this post – the first I read – really got me thinking. I thought I sold jewellery, but now after a few hours of thinking, I think I’m selling feelings. At least I know that wearing a big ring makes me feel happy… and wearing a big necklace makes me feel confident. So maybe I’m selling… happiness? Or confidence? Or both?
I need to noodle this over. A lot.
Thank you . Consider yourself stalked. 😉
I am so grateful for your wisdom and that you share what you know with others!
My biz is actually based on my personal cause with lupus. I now need to better incorporate that in my selling technique.
I love reading your stuff. It’s like opening a gift……every time:)
Great post! When I think about selling an idea it’s so much easier for me than to sell a commodity. Each piece is based on an idea and explaining that initial feeling gets me excited about my work and that excitement resonates with the customer.
Thank you so very much for such a thought provoking and informative post. I have been thinking about this very topic since first opening my etsy shop but find that it has been so hard to define what exactly I am selling. You gave some really good examples for those who sell bath and body or garters. I wonder though what examples/suggestions would you have for the jewelry vendor? Someone suggested in a previous comment that they like the idea of selling an heirloom and another suggested maybe happiness or confidence. I would like to see what your thoughts are. I think with jewelry it is particularly harder to define because it is such a luxury item. I mean it doesn’t fall in the same category as the more useful items such as soaps or clothing. Do you agree?
Look forward to hearing what your thoughts are? Thank you again for your time and this great post.
Heather
heather –
not everyone who is selling jewelry is selling the same thing. some people might be selling an heirloom, whereas others might be selling something that is meant to be fashionable. the feelings that come from wearing a piece of jewelry might range from confidence to feeling trendy or cool or “in” or it could be the opposite, the feeling of being unique and different. It could be about fitting in with a group or standing out. There is also a whole genre of jewelry that is about selling a cause.
one way to help determine this for your particular business is to ask people who own and wear your jewelry on a regular basis how it makes them feel.
This is another post that requires bookmarking and needs to be reread several times. I remember listening to the first TCE conference call where you talked about describing what you do. This relates somewhat to that topic. Trying to articulate the emotion behind what you do is the same as articulating the emotion behind the product you make or service you provide. Each time I read an article or post that talks about this, it sinks in a little deeper. Meredith at Smaller Box recently wrote a post regarding the why component of branding, which again, ties into this concept. I’m always so impressed at how you (Meredith and Tara as well) seem to just ‘get it’ and I hope I can really ‘get it’ soon too.
Thanks for the great post.
Megan,
This reminds me of a struggle i had when i first started selling my whimsical sleeping masks. I couldn’t figure out how to describe what i was selling.
I was leaning on my husband and friends to help me describe my eye masks. But the problem was, they were not my customers and probably would never buy my cute kitsch and sometimes macabre masks.
But then as my customers started buying my masks, they gave me great feedback. They literally told me what it was that they loved about my masks and it helped me see my products in a whole new light. So ask people to help you see your products through their eyes. Go on etsy, forums and post a link and ask for people what they think, ask them to describe your product, who would they give it to.. I was happily surprised at how many people are willing to help if you only ask. Plus you can make some awesome new friends online that rival physical friendships. I DIGRESS!! 🙂
Thanks Megan, Ann’s blog is beautiful. i am now following her on twitter and want one of her boats so badly.
Hello everybody, I am very proud now to be part of the “TEAM”. I am agree with all of you when you congratulate Megan. I am also very happy to be in the same situation that most of you even if is difficult (I am just starting). This really make us to think about that! Thanks again Mega! Is very nice from you to help us, we need it! You bring us some fresh and new ideas to get better. Most of us we have what you say, but we need to work on it to let everybody to see it and enjoy it!
Thanks again! Also to your friend (short hear en glasses) I have enjoy one of her videos, through her video is how I know you!
I have follow a “curse” called Master Entrepreneur, from open circles academy, very Intensive in 3 days and when I look how you make it seem that you follow step by step what they teach us in this curse…your are going in the very right direction with your “business” and you have the perfect way to make it, videos, facebook, twitter, …and give something to your clients (we) for free that they really enjoy and have a great value, everything you make is perfect en helpful for us!
I made RESIN JEWELS (arceweb) I start knowing you through ETSY, and I love it, but is not going very well with sales! But I will continue trying it, I need to change soooo many things, from the beginning to the end, photos, message to my clients, I also want to give a better quality to my products….
Ok, nice to be around you everybody!
Ah, [Sorry for my English, I am Spanish living in Nederland]
I’ve been thinking about this for days & it suddenly struck me that even though my daily jars are not directly for sale, what I’m selling is enchantment, a moment of magic in a mundane day.
ChezaI am not sure where he will be when you are here. His works, chalk on sidewalks, are ephamerel, lasting only until a good rain or many feet cause them to fade. But you might find him around. I hope so. In any case, we look forward to your visit!
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love this!!
Amazing article. I’ve not really thought about it but I will now! What am I really selling? Hmm…
Thanks for the impetus!