Posts Tagged ‘pricing’
This week, I want to talk about rule #2 when it comes to pricing for your creative business: it has to be sustainable.
I know that sustainability is a word that gets thrown around a lot these days, but the bottom line is this: if you are working towards a creative business that you can make a living from, you have to be sure that you set things up so that you can earn a living wage. You have to be able to pay yourself. Or else it’s not going to work.
It’s scary. It’s a big thing to consider, especially when you’re starting out.
The truth is that when you get started, you likely aren’t going to be earning a living wage from your creative business. Most of us have side projects or second jobs that sustain us while we get started, BUT you have to have a vision of sustainability in mind before you jump in.
Too often, as creatives, we focus on the passion, on the heart. On the craft of it all. And that all still can count for a LOT but bringing a sense of business in, even from the beginning, can often make the difference between making a living and having a hobby.
The point is for what you love to be what you do, right? Getting real about the business side of things sooner rather than later will help solidify that as a reality.
What is the best business decision you made early on? On the flip side, what is the one business decision you WISH you’d made early on? How were you able to find your sweet spot?
*image via WilloToons: Stitching it all Together
This contributor post was written by Tiffany Moore.
Let’s talk about money…yay!
Pricing is no fun. Trying to put a dollar amount on your creative product is never easy. But in terms of business, pricing is critical. (If you’re trying to sell things as a creative hobby, it might be a different story, but please, out of respect for those of us who are trying to do this as a business, know that how you price your “hobby” affects the people whose work is their livelihood.)
When I was working retail, I got a piece of advice from my manager that has been one of the biggest business lessons I’ve ever learned: “Don’t make assumptions about what other people can afford based on where you are in your own life.” It seems so simple, yet, I remind myself of this all the time. I cannot put my own judgements on what other people can afford.
To take that to the next level: I cannot set my prices based on what I, my family, or my friends can afford.
As an artist, a designer, or crafter, it is not your job to determine what people can afford to pay. It is not your job to make sure that your best friend can afford one of your prints. It is not your job to make sure that you don’t make someone feel bad because they don’t have the money to purchase something you’re selling.
It is your job to make high-quality work. It is your job to get paid well for your time and your materials. It is your job to earn a living from your craft.
If you consistently hear, “I’d love that, but I can’t afford it right now,” that doesn’t mean that your prices are too high. It means that you’re marketing to the wrong people. But that’s material for another post?
Your turn: how have you learned to get out of your own way in terms of pricing? What boundaries have you had to push past to ask for what you’re really worth in your business?
*image via Fresh Words Market: My Worth Will Not Be Dictated by a Number
I’m Brenda from Phydelle and Phydeaux Designs, back with this week’s edition of Craft Venture! We talked last week about debriefing from your holiday season – identifying lessons to learn and new opportunities, as part of our January series on cleaning up and making over our online shops. Let’s revisit pricing this week – January is the perfect time to recalculate your prices, particularly if you’re introducing new designs and new lines!
We talked about pricing recently. Is it too soon to think about pricing again? No! As a small business owner, you should always be thinking about your pricing structure and strategy! Your expenses constantly fluctuate – revisiting your prices a few times a year will help you make sure you’re not unintentionally losing money.
Also, after the holidays, retailers are looking for brand new goods and designs. What better time to revisit your wholesale pricing, while you spruce up your shop and introduce new goods?
Welcome to Craft Venture – business and marketing tips for indie online business owners. Like me! I’m Brenda, owner of Phydeaux Designs on Etsy1000 Markets, and Phydelle Designs on Etsy. Last week, we talked about considering what the market will bear when you are pricing your products or services, as part of our discussion about pricing – perhaps the most challenging part of owning your own business. and
Hopefully, you’ve read our whole series on pricing your products and/or services, and perhaps you’ve even worked on your own pricing as a result! As you know or have learned, pricing is both very simple and incredibly complex. Cover your costs, build in a wage, make sure you have a profit margin.
What about wholesale pricing?
Ah yes, the dual edged sword: wholesaling. Has your heart gone pitter patter when you read an email from a potential wholesale customer, only to go floppity flop when you realize that wholesale prices are significantly lower than your own retail price? Before we dig into wholesale pricing, maybe we should back up and talk about what wholesaling is?
Welcome to Craft Venture – business and marketing tips for indie online business owners. Like me! I’m Brenda, owner of Phydeaux Designs on Etsy and 1000 Markets, and Phydelle Designs on Etsy. Last week, we talked about how much you’re worth, or are you worth paying a wage to? (Well, of course you are! You work very hard!) We’ve been talking about pricing – perhaps the most challenging part of owning your own business. Price too high, and your wonderful items don’t sell. Price too low, and you don’t make a profit or perhaps create the impression of lower value for your goods or services.
This summer, I completed the entire pricing exercise I’ve been talking with you about, resulting in a price overhaul. When all was said and done, I found I was right on point for several items, a little high on others, and seriously underpriced for many.
I worried about raising prices. There is often a perception that handmade should be low priced. From a business perspective, I neither want to be the most expensive nor the least. I’ve learned, however, that I’m not the best judge of “fair” pricing for hand knit items. When I look at other knit goods, my inner voice keeps saying, “I could knit that for so much less.”