When you’re pricing your products, it’s helpful to start with a formula. A formula will ensure you’re covering the cost of materials. A formula will ensure you’re getting paid for your time. A formula will ensure you’re making a profit.
But here’s what you need to keep in mind.
People don’t buy based on formulas.
No one walks into a craft show booth and thinks, “I’m going to buy those earrings because they take into account the seller’s labor, materials, and expenses.”
People buy because they think a product is a good value for the price.
Note that I didn’t use the word cheap. This isn’t about being cheap. This isn’t about being the lowest price around.
When most people decide to make a purchase, they do so because they perceive that the value or benefit to them is worth equal to or more than the amount of money they have to pay.
And the more value a potential customer perceives, the more they are willing to pay.
Which is why effective pricing factors in both the cost of doing business (the formula) and the value your product provides to the customer.
And don’t worry. Value doesn’t mean your art (or craft) needs to solve a problem. Beauty, joy, happiness, luxury. These are all things that give your art value.
But how do you know you’re meeting both of these criteria? How can you ensure you’re using a formula that’s profitable and reflecting the value of your work to the customer?
That’s where I come in.
I’ve put together a digital workshop called Pricing for Profit that walks you through both aspects of pricing your products – the formula that ensures you’re profitable and the value your product provides to the customer.
Head over to the Pricing for Profit page to buy now or get more information.
