5 Reasons You Can Validate Raising Your Pricing
I’ve heard it all before, both in my own head when I first started selling handmade things and from so many of my clients…
“I just don’t feel comfortable charging more”
“People where I live just don’t spend money on artistic things”
“The materials only cost X, I can’t charge Z”
or, my personal favorite, “what will my family or current customers/audience think of me?”
Each of these is a thought distortion and each one of them will not only keep you from making more money but they may even cause you to eventually give up on your dream because you think you can’t be profitable and that you’re wasting money on materials. (I have a whole list of 10 things that WILL happen when you start getting paid for your work, if you need more reasons.)
There comes a time in every handmade (or product-based) business when you have to take a look at your creation and customer service cost. Is what you’re getting paid worth your time to even make it or are you only breaking even, or worse, losing, money on each sale? (Hobbyists, this article is not for you… if you can create without worrying about money, you keep doing your thing, girlfriend, rock on.) Can you even make enough in one year to be able to meet the financial goals for yourself?
If answering those questions is hard or you’re the type of person who sometimes needs outside reassurance for her choices (I’m the same way and thinking of starting a support group… so know there’s no judgement there), here are a few reasons you need to raise your prices
5 reasons you can validate raising your prices:
You always give amazing customer service (this is not as common as you'd think) - as a small business, you’d assume that every other small business, or any business really, would want to be offering the very best in customer service so they get people coming back to shop with them again. Unfortunately, this is not the case. I’ve ordered many things online, both from makers and other small businesses, and sometimes don’t even get a “thank you for your order” other than a quick order confirmation email. Then, when the order arrives, all that’s included is a business card or a packing slip (and sometimes not even that!) If you’re the type of person who carefully wraps their work for shipping, includes a hand-written note, and maybe even a cute sticker or stamp somewhere on your package, you’re already a step above so many… include that in your pricing.
You know your product is made with good quality materials and your craftsmanship is good quality as well - there are a LOT of people out there selling a LOT of cheap crap, let’s face it. I’ve fallen victim to it and you may have too. The photos of the models in the photo look really good, everything sounds legit, and then you open the box when it arrives and find something you never would have paid for if you saw it in-person in a store somewhere. If you make something and you KNOW the materials are good and that you’re creating something with true crafts-woman-ship… include that in your pricing.
The price you're listing your work for now is barely making you break even when you make a sale - sometimes we get so wrapped up in the fun of creating something new, we forget to look at the bottom line. How much does it really cost you, from the time you buy each and every single material going into your work (from clay to beads to paint) to the gas it takes you to drive to the post office to ship it out? Do you make any profit after that? If you want to have a business, and be able to at least pay for your materials for the foreseeable future… include that in your pricing.
Other people out there are selling the same thing for more - basing your pricing on someone else’s is not always the best way to go for several reasons, but if other makers with similar products are listing their work for way more than yours, then you should too. You need to show your customers that your work has value and part of that is reflected in the price you list it for… include that in your pricing.
You haven't raised your prices since you first started selling - if you’ve been creating for more than several months and you haven’t raised your prices at all, this is your permission to do so. “Why?” you ask? Think of all that you’ve learned in the last few months (or years, for some of you). Think of the techniques you’ve learned and come to perfect that much more than a few months ago. Those little things matter and they deserve at least an extra few dollars, if not more… include that in your pricing.
It’s not uncommon for artists and artisans to have trouble with pricing their work, don’t think you’re alone in this. But if you never take the leap to charge more, you’ll never know the possibilities your talent can truly unlock for your future.
Be bold. Take yourself seriously as an artist. Give yourself and your work the credit it deserves.
Until next time, happy creating <3
