Tuesday, 28 January 2014

Handmade Pricing: How To Respond When Told You Charge Too Much




P R I C I N G   ... it's almost a dirty word in handmade communities.


Deciding what to charge for your creations is one of the most difficult things in your business. We rarely charge what our creations are worth and we are lucky to actually make money on our products.

So, with all the agonising that we do with setting our prices, and knowing that we are actually underpricing our work, imagine the kick in the guts you get when someone actually has the nerve to tell you you are charging too much!

Yep, you just slapped them didn't you?


(well, you felt like it)


I bet if it's already happened to you you've responded in a way that didn't gain you a customer. Online comments can be read so many different ways so it's unlikely that either party came off looking good. Face to face you react emotionally, you are embarrassed, even angry (what nerve!!).



How would you feel if you could turn this tricky situation around and possibly gain a true loyal customer?

To begin, you need to understand what might have motivated such a comment in the first place. Perhaps the person desperately loves your creation but your price is out of their budget. Maybe they are new to the handmade world and are yet to realise the true value of handmade. 

With understand possible motives, comes compassion. 

So here is how to respond, adapt this for your business and what you offer, and practice it over and over especially if you do markets! you could turn the situation into a great relationship!


"I'm sorry you feel the price of the dress is too high. There is a lot that goes into pricing and it is always a delicate balance between pricing accurately for the true value and undercharging. I am running a home business and my pricing reflects the quality and care taken to created each and every item. I understand that my pricing might be out of your budget and if you are wanting to buy one of my creations I recommend you sign up to my newsletter where I release specials from time to time. I also have spot sales on my Facebook page so please make sure you have "show in newsfeed" selected for my page so you don't miss any of them."


You can also include some distinctions of your work that make it worth the price, triple stitching, lined, premium materials?

You need to be respectful, remember, most of us can't really afford to buy handmade all the time either. Realise that most of these types of comments will come from people who actually like your work and really want it.

Draft your response and rehearse it!

Oh, and while we're here, If this happens on social media, don't delete and ban, respond as above and wish them well. Be a shining example of the handmade community and take your part in educating our customers why prices are what they are.


If you need help working out your prices check out my new digital template.

3 comments:

  1. I am struggling with this right now as I've needed to increase my pricing. This is great advice. Thanks

    ReplyDelete
  2. I am struggling with this right now as I've needed to increase my pricing. This is great advice. Thanks

    ReplyDelete

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