In the online marketplace, buyers have many different options spread out before them. While obviously the quality and style of your work will play an important role in how well your items sell, the price you charge for your handmade products is also a major factor in their final decision. But here’s the twist- that doesn’t necessarily mean that the lowest price wins!
Calculate Your Costs
Start by figuring out how much it costs you to produce a specific item. Start by paying yourself a reasonable hourly wage for your work, and add in the cost of materials. The total should be your wholesale price. If you are selling to stores, they will double that wholesale price for their retail mark-up, giving them room to play with for sales discounts.
If you’re selling directly to your customers through an online marketplace and craft shows, resist the temptation to low-ball your price and charge customers the wholesale price. Give yourself the option of offering discounts or special promotions without cutting into your wholesale price- then you’re working for less than you’re worth, and limit the money you have available to re-invest in your business!
Check Out the Competition
Your real competition is not the mass-produced version of your hand-crafted pieces- it’s the other people out there creating comparable quality work. Look around at craft shows and in online shops to see what they are charging for similar products, and adjust your prices accordingly.
Rounding Things Off
While you don’t want to sell yourself short when calculating an item’s value, at the same time you should consider typical buying habits, especially when it comes to gift-giving. For instance, perhaps your retail price ends up at $105. However, when shopping for presents, many people start with a pre-set limit for what they’re planning to spend. If a customer has a gift limit of $100, they’re going to limit their search of your shop to items $100 and under, and that $105 product will not show up in the search results. Consider rounding off prices to $100, $50, or $25, even if it means losing a few dollars in the process.
People who are already pre-disposed to buying hand-crafted items are likely to be willing to pay more for your unique products. In fact, too low a price may make them question the quality of your work! Create a story for your shop that will persuade buyers to spend that extra money. Describe the techniques you use or how you source your materials to give them the incentive to buy.
Half the battle is finding yourself an online marketplace that will attract the right clientele. At Artisan Born, quality is emphasized, and buyers expect to pay well for unique hand-crafted pieces. See if our platform is the right one for you by clicking here! Also, take a look at our blog for more tips, ideas, and inspiration!