Thursday, November 20, 2014

Sell Handmade Crafts: Pricing Tips for Sellers

How Much To Charge?

Pricing your handmade goods for sale isn't an easy task. Your prices need to be in line with your competitors, yet cover your costs and retain profit. Many formulas are available to help you find the correct selling price and you should use them. Taking time to come up with the right price will allow you and your customer to be happy after the sale.

Today, however, I am not talking about covering costs and profits. Today is about a little retail secret that will help you sell a lot more of your handmade goods.

Why do gas prices always end in .9 ?

This retail secret is about the process our mind goes through when we buy something. Think about the purchases you make everyday, like gasoline or food. Everything is priced with a $.99 or $.95 at the end. An entire industry was based on the 99 Cents Stores.  Our brain needs happy thoughts or we won' t buy.  Top marketing professionals know this. We think $9.99 is a bargain next to $10.00 and it makes us happy to save money.  

I first learned about this idea back 1990s. I owned a neighborhood computer shop and tried an experiment from a retail marketing book (remember books?). It said if you had a product that you want to sell for $5.00, place that product on both sides of your store. Price one side at $5.00 and on the side of the store, price it at $5.99. See which sells better. I tried this experiment with printer cables and sure enough, we sold 35% of a slighter higher version of the same item. I witnessed customers looking at both items while browsing the store and gravitate to the higher priced item. Occasional I directed them over to the less expensive cables, but they found their way to the other higher priced cables. 

Don't ignore this basic sales technique when pricing your crafts and other handmade goods. It really works and it could help bring you tons of new business. So why not give it a try. Add or take away a few pennies to find the perfect price point for a win-win sale!

Until next time,

Happy Crafting!

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