When it comes down to pricing your products it can be a daunting prospect. You want to earn from your work but you are scared of pricing too high. Yet price too low and you hurt your profit margin and your business.
Where do you turn for answers? Well, the search engines can help you out. But I have a better idea how about asking some business owners who sold the most expensive products on Folksy in 2014. Think about this for a second, you are scared of pricing yourself out of the market yet these business owners are pricing high and staying there.
I contacted Folksy who pointed me in the direction of the top 5 Folksy sellers (link to post), who’s product where the most expensive sold on Folksy. an one of the top 5 was is 2 positions, how cool is that. Today I want to introduce you to Mark & Lisa who share their awesome responses related to pricing.
Now it’s time to introduce Lisa & Mark
Lisa’s British Made luxury heritage quilts with a contemporary twist are stitched to last.. (quoted from her blog)
You can visit Lisa and connect with her by the links below:
“Emporium for handcrafted contemporary furniture & sculptural objects”. (quoted from his Folksy store)
You can visit Mark shop and connect with him by the links below:
Many business owners struggle with pricing their products in the beginning. Did you struggle with pricing your products and how did you get past this?
My quilt business is now in its second year. My 100% British made Harris Tweed and velvet quilts with a contemporary twist were my first collection. I wish to make well made quality heirloom quilts that will last. The price for my quilts reflects this.
Pricing is difficult, no matter what business you’re in. It’s arguably one of the hardest things to get right. I did find it tricky in the beginning, but trial and error and the right technology helped to get to a point now where it’s much more straightforward and less time consuming.
What pricing formula do you use to price your products?
As with all evolving businesses, I am enjoying the challenge of finding my ideal customer niche and am always looking for the right ‘sweet spot’ for my quilts. When pricing my quilts, I work out the cost price, the trade price (at least 35%, ideally 50% more than cost price) and then the selling price (at least 35%, ideally 50% more than the trade price).
I run a bespoke furniture business – Spokeshaved – Emporium for Handcrafted & Scultptural Objects so each commission price is based on materials, design and time to make and install. It changes all the time so there is no magic formula! I do listen to the brief very carefully and challenge it and offer alternatives if we need to get the price down to fit the clients budget.
What would you say to fellow business owners scared of pricing their products to high?
At present we stitch our quilts in limited runs, so when they are gone they are gone….If in the future we upscale our production methods the cost price would drop and the selling price would then also be reduced. However, Quilts by Lisa Watson would be a less exclusive brand!
My view is that you will sell products if they are well made, original, fit the brief and you have a viable distribution channel, be that direct or through others. Be confident in your pricing as it’s your business and livelihood after all. Always be prepared to try different ways of costing jobs until you get to a point where it works for you, it’s easy to manage, you can track costs and profit clearly and you are confident in your pricing approach with clients.
I would love to thank Lisa & Mark for sharing their insights on pricing. Now over to you…..