It is now the final week of our pricing your handmade items and crafts for sale discussion. So far we have discussed: the cost plus a wage and the cost plus a wage plus a margin and cost plus a wage plus a margin plus a commission.This week we will visit my favourite, the under-utilised:
Whatever I feel like pricing method
I love this method, because as the name suggests it allow you to charge whatever you feel like. Usually this is linked to the perceived value of what you are selling. This works particularly well if you are making unique one off items that can’t be easily replicated. If your items take an element of skill and craftsmanship to produce and you create a sense of desire around your product. This pricing method always ends up the most expensive. Taking the baby quilt example, this isn’t the whatever I feel like $60 method, this is the whatever I feel like $495 method.
If you are going to use this method you need to be confident in your product and be very good at communicating the benefits of your product to your customers. The more value your customers see in your product, the more they will be willing to pay for the product. Think Bespoke, Custom, Limited Edition, One Off, Designer – phrases like this are what creates a desire in people to pay a premium price for an item. Think Rolls Royce versus Great Wall. Make your products the Roll Royce of the craft world and you too can charge premium prices.
Well I hope this series of blog posts has helped you in some way. Start small, but make sure you start. You don’t have to charge Rolls Royce prices day one, but at the very least make sure you are working minimum wage and move up from there.
Choose one to start. Will it be perfect? Probably not. But as with all things in business sometimes you just have to try different things till you find what works.
If you want to review any previous Pricing Strategies: