3 Signs You Should Raise Your Prices
Are you charging as much as you think you're worth?
Do you have a pricing system or are you just shooting in the dark, hoping to hit a clay pigeon, 200 miles away from you, flying at 300mph?
As creatives our first instinct is to undervalue our work and charge a ridiculously low price for it.
Another common mistake I see is creatives thinking no one will pay the real value for their work.
But the opposite is true!
When you sell yourself cheap, you'll actually attract the worst kind of clients.
You'll also burn out more quickly, not to mention you won't be able to live off of your art or craft.
So here are three signs you should reconsider your prices:
1. You don't have a pricing strategy/you just threw a random price on:
"Knowing is half the battle" -- GI Joe
Many things go into a solid pricing strategy, including your competitor's pricing levels, market demand and supply, cost analysis and more.
Pricing is a science and as such, guesswork is plain and simple NOT acceptable.
It's as bad for your brand, it can actually cost you money and it's plain bad business.
2. You get lots of views and no sales.
While we all know in our heads that pricing matters, many of us don't understand how pricing cheaply can actually drive people AWAY.
One of the biggest myths in the handmade world is that people are more likely to buy if your price is cheap, or its ugly step-sister "no one will pay the real value of this".
I hate to break it to you actually, I'm super happy and prancing about because I get to break this to you! -- but when it comes to handmade people aren't looking for the cheap option.
Marmalead.com ran an extensive research and found that prices that were slightly above average (in the "premium" range of pricing) actually sold MORE and converted BETTER than average or cheap pricing.
This is because when you price cheap, your shopper's first reaction is "wait a minute, there must be something wrong with this product", Even if there's no real justification for this, a cheap item will always be perceived as lower quality.
3. Your clients are complaining, leaving bad reviews and are generally unhappy with your business.
They expect same-day delivery (even when you said it's a 3 week turnaround time), they complain about every single thing, don't appreciate your hard work or your effort to appease them and just generally make your life miserable.
This should be a flashing red alarm to you. People who don't appreciate your business and are insatiable, no matter how hard you try are just bad customers. And nothing attracts a bad customer like cheap prices.
These are your sale-hunters, coupon-devourers, misery-inducing shoppers who are just out to get a good deal. And if they can get the product free, they'll be happy to make your life as miserable as theirs.
The only way to really avoid this type of people is...
Wait for it...
Charge what you're worth.
So stop thinking no one will pay for your product.
If David Reese can make a full-time living out of artisanal pencil sharpening, so can you!
(Because I know you're excited about shelling out 500$ to sharpen a pencil. ME TOO!)