Pricing Tips

TIP 1: Unless you've already got a niche market or select group of repeat buyers, offer a wide range of pricing for a wide range of art or crafts works. It won't hurt to “have something for everyone”.

Eg.) Crafters how many times have you been at a show when the little boy comes to you wishing you had something a wee bit cheaper as he's only got this much money to spend to buy his Mom something for Mother's Day? Right? It may not be your core product range, but how much does it take to create a smaller subset of your creative works to cover off some of this?

MISTAKE: Too selectively targeting and pricing one's products and thereby shutting out part of the market from even considering you the next time they're looking for something to buy...

TIP 2: There's nothing more frustrating for customers than seeing artworks they love, but there's no prices on them... People like to browse first, to get a feel for whether what they're liking in what they're seeing, is something they can afford. Then they'll talk thereafter, if they want to. You should always price your work, regardless of where it is being sold. There is seldom a real good reason to not display your prices, that can't be addressed in some other way. Consider if it would help the customer more to include shipping and handling in Canada, within the retail price, too. The less questions they have to ask to satisfy their buying curiosity, the more apt it is to result in a sale... Human nature dictates that most people will not take the time to ask you for a price, and especially if they're only “just browsing”, they hate to ask. Do you really want people to think you are playing “the price game”?

MISTAKE: If customers have to ask for your prices, it beckons in their minds, the question of why are you not displaying them, or worse yet, if they start presuming... “It must be because they're far too expensive for the average person, like me???” Do you want to risk them thinking this, rightly or wrongly?

FOLLOW-UP TIP: Your work shows your professionalism; shows you have confidence in yourself. So do your prices. It shows you have put a price on your talents and that you are worth it, and... that you are not playing the price game. Remember price is a matter of opinion; you are not going to please everybody, all the time. But you do not want to risk “turning off” customers by displaying no prices, and leaving them with nothing but questions or wrong assumptions. Nor is it a wise strategy to post no prices and then be pursuing your store customers asking them if you can help them with anything... In their minds they'll be thinking... “duh... how bout' some prices and then I'll see if I want to talk with you...” There's a right way and then there's some other ways that ain't so good...”

TIP 3: Nowadays, everyone is looking for the best value, or at least, perception of value... Always price your products so that you have some room to bargain or dicker on the price. Factor into your your pricing, perhaps 10% to 15% to “play with”. Sometimes just discounting the price a wee bit when a customer wants to feel they “won the negotiation”, is all that's required to get them to buy. It may cost you very little, and it will make them feel like they got a great deal... and why not! Guess who'll be back to see you again?

MISTAKE: You're in business to make money so obviously use dollars & cents common- sense in all your negotiations. Vendors who are perceived as being inflexible, particularly if there's a little atittude attached to it, are oftentimes considered arrogant by customers. Guess who won't be back to see you again? Remember that you can always say no, if a customer's being ridiculous, but it oftentimes takes so little to please someone. They may be happy that they won and got a bit of a better price... but the fact is, you got the sale you might not have otherwise got, so... it's a win-win for both!

FOLLOW UP TIP: Don't just think of now... think of “repeat or referred business” from a happy customer that is apt to visit you again!The reality is, the small impact on your profits for a small discount, may return far more to you in the long run than a mere few points at this moment.

TIP 4: Art is art. It's really all very subjective. There are no real industry pricing standards as much as there are “prices that the market bears” and is willing to pay for a somewhat similar work of art elsewhere... There are no rights nor wrongs. It's very much in the eye of the beholder. Success happens when a vendor finds the “magic” price range for his art or craft works, and the beholder's eye has been attracted.

How you market yourself, what your store may look like, or how you display your works, will all show your level of self-confidence and professionalism. It can attest to whether you are a seasoned and experienced craftsman or making a hobby out of it on the side... Duly consider what crowd you are wanting to attract and how to best reach them. Learn from the market as well as peers. Pay attention to customers' comments. Pay attention to what is selling and what is not and how easy that sale is happening, or not. Do proactive marketing. And try new things! Always think about enhancing value. You can never go wrong with that... People always love that “something extra”. The old status quo is only for businesses that don't want to grow any bigger. Who are you?

MISTAKE: Never make the mistake of running your business by “reaction”.

Eg.) The first few customers browsing your artwork, see your prices, or you quote them a special price, and they buy immediately. Ahhh... a nice quick sale!... And then if they accepted that without hesitation, you go ahead and assume that you had not asked enough for it, so you raise the price for next time. Or vice versa, let's say you do this a few times and they do not buy, so you go ahead and assume you are asking too much and you then lower the price from then on. Repeat visitors customers will inevitably catch on to what you're doing... not a good idea. Your price should never be ALL that sells your products. There are many other factors that contribute to effective sales. Don't just fall into the pricing trap and price yourself right out of profitability or likewise, into the “pie in the sky” zone. Do your homework. Everything can be re-adjusted for the “right reasons”. Don't be emotional with your pricing. Factor in your costs and all the other marketing considerations, as well as customer demographics, seasonality issues, market timing and outside societal influences, etc. Then do a little “testing of the waters” but do not jump from one extreme to the other, being forever moved by reaction to your prices. Your creative work has an intrinsic value. Find what it is and enhance it's value with the rest of your marketing and sales approach, too. Sometimes the cheaper-pitched arts & crafts work is that which is avoided... Know what you're worth, and be confident with it, as the market will affirm it over time. Find your price range and you'll be home free. If you don't know enough about marketing, learn what you can. Make sure you know that there is far more to effective selling than just price. Contact A&CNet, we can help you.