Tuesday, 18 February 2014

Handmade Pricing: When It's Not Just About The Numbers

When is pricing not about the numbers? 

I know it sounds crazy. What's the point of having a pricing formula and then not following it?

While it is essential that you have a complete understanding of the real costs associated with creating your products, sometimes what you decide to put on the tag as your price will be vastly different than what the formula suggests.

Why? It's call pricing with your heart.

As you read each brand name, what feelings, what emotions do they evoke in you?

That, right there, is when pricing isn't about the numbers.

Let's do an exercise. Get yourself a peice of paper and on the left list down a range of brands, make sure you include some that actually have the same target customer as you but they don't all have to be.

Now, next to each brand, write 3-10 things that that brand means to you. 

Next, think about your own brand and the emotions and feelings that you want others to feel when they see your logo. 

Compare those feelings and emotions to the ones you've just written down and now consider what the pricing strategy is for those brands.

Now, consider your prices, do your prices support how you want people to feel about your brand?

This can be a hard decision to make in your business. Chances are you are underpricing your product as it is and even the smallest of price rises can see you break out in a sweat! So, please, relax. Decide where you want your prices to be and raise them in increments. By the time you actually reach where you are aiming your product will also be significantly better than it is now. The more you create the better you get.

I'd love to know how you went in the exercise, do your prices reflect your brand's "heart" or do you have a little way to go to get it there?

Other articles about pricing:

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

1 comment:

  1. Great article - I did the writing exercise - definite need to restructure abit


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