Confidently Price Your Art
When you’re selling your art/product/crafts there are some key things to keep in mind to ensure your products are selling and (most importantly) you get paid! If you feel uncomfortable talking about pricing, you’re not alone - most people cringe when talking to others about money. However, you should feel empowered to price your art fairly. Below are some points to keep in mind when setting prices so you can feel confident!
Do Research
Take a look at your competitors. Look for those who are working with similar medium and are about on the same stage of their journey. How are they pricing similar work? If I was just starting to sell work as a potter I may not price my items the same as say someone who has been selling pottery for 10 years.
Consider Your Costs and Time
When all is said and done how much did you spend to make your art? How many hours did you spend to finish it? You want to be sure you get reimbursed for the money spent creating the work and get paid for the time you spent working on it. In the costs category you’ll want to make sure to also factor in any fees associated with selling the product (Etsy, Shopify, shipping, markets).
Review Market Demand
Consider the demand for your art. Do you have a following? Do you sell out as soon as you list new items? The overall market demand gives you great insight as to how you can price a product higher or lower.
Be Consistent
When you find a pricing structure that is working for you, stick with it for a bit. You don’t want to be yo-yoing prices constantly because it can confuse and potential turn off your customers. However, in today’s world inflation is a real thing, it is ok 1-2 times a year adjusting prices to account for inflation and rising prices everywhere.
Test The Market
While being consistent is important, when you are trying to price something for the first time take your time to test the price. It’s better to start a tad lower and then raise it as the demand for the product grows.
Have a Range of Prices
If you want your product to reach a variety of customers it’s a good idea to have a range of prices. If possible, have some low $5-$20, medium $20-$80, and $80+ price range items. This allows folks to get into your products no matter the situation they are in. Espeically by having some cheaper items customers are able to buy your work and hopefully they become a return customer in the medium/high price ranges.
Review Profit Margins
When you’ve settles on your price be sure to take a minute to review the profit margin for that particular product. You want to make sure that you’re not loosing money and are getting enough of a return for it to be worth it for you. Product margin can be calculated by Net Profit - Cost of Goods / Net Profit. Learn more about profit margins here.
Emotional Attachment
You can become emotionally attached to your piece. The hours spent creating, molding, shaping, fine tuning, etc - there is a lot of labor and love you put into it. Thank you for taking the time to make it perfect. When it comes to pricing you’ll want to be objective - don’t undervalue your work and on the other side of that don’t price it outside of range, demand, and resources.
