How to Raise Your Prices
Perceived value is the worth a shopper places on an item when considering a purchase. Newcomers in business almost always under-price their craft products thinking they will attract more buyers. In the handmade marketplace, lowering the price more often lowers the perceived value. Raising the perceived value, however, lets you increase your prices and boosts your sales.
The misconception is that price determines sales, which is generally untrue for the handmade marketplace. What is true more often is that sales are driven by what you do to market, display, package, and a host of other promotional activities. Here are a few ways to up the perception of value of your crafts for sale.
Tell them it’s handmade
The fact that you make something by hand should be highlighted at the top of your marketing messages and is probably your number one way to increase perceived value. When writing my book Sell Your Crafts Online, I found that thousands of people search Google every day using phrases related to handmade gifts. In January of 2011, $33.5 million of goods were sold on Etsy, up around 60 percent over the previous year. Etsy’s increasing growth reflects the demand of consumers for handmade products.
Bring back that loving feeling
You may have grown so accustomed to your work that you don’t see your pieces with the same adoration you once had. But shoppers watch what you do, so look at your items with adoration while you are talking with folks about your work. Try this tactic: lovingly touch, hold or pick up your handmade item to show them, handling it as if it were made of the most precious and rare materials. The way you handle your item is a subtle yet powerful communication to would be buyers.
If you use environmentally friendly materials, use words in your product signage and descriptions to remind shoppers that your products are eco-friendly, sustainable, green or from recycled materials (of course, only if any of these are true.) For example, you might make dinosaur sculptures from recycled tin thrown out from construction sites. Or you might use lead-free solder or paints.
Consumers are on the lookout for the environmental impact of the materials in the products they buy. Shoppers are willing to pay more to go green. Just look at the success of Whole Foods, for example.
The above are three of the fifteen ways to raise your prices without raising eyebrows excerpted from How to Price Crafts and Things You Make to Sell by James Dillehay. Read the related article on pricing crafts.