Sunday, August 18, 2013

7 Reasons To Raise Your Prices


Every business owner struggles over what they should charge for their products and service.  I believe the hand-made market and the art market faces an even harder uphill battle when trying to figure out pricing.

We think deeply about what we should charge for our art or craft.  Should we go for the higher price and have a longer wait to get sales?  Or should we go lower and sell more and feel safe that "Well, at least I'm making some money."

Pricing is important.  So important that it will make or break your business.  

Here is what I know....

Higher prices simply work better.


7 Reasons Why Higher Prices Will Work Better For Your Art Business:

1.  Higher prices increase value in the mind of the customer.

When you charge more, people pay attention.  It becomes clear in their mind that this product is something that is worthy and should be revered.  

This is how I feel about my Ipad.  In the past, after awhile my laptop would get slow, not function so well and soon I wouldn't treat it very well either. 

I put the laptop on top of anything, took it everywhere, let it get scratched, dirty, got paint on it.  

Then I got the Ipad. 

My Ipad cost triple of what I paid for any laptop.  My Ipad has it's own case, is kept unscratched, no food, paint or sticky fingers to ever come in contact with it.

Because I paid more it gets treated with respect.  

This is because we fear wasting money.  We don't want to ruin something that is valuable.  

How do you wish your clients to perceive and treat your artwork?

Would you like your painting hung on the living room wall as the focus of the living room and the focal piece of the house?  Or would you rather it showcased in the guest bedroom, downstairs?

You sell hand-made quilts?  Would you like that your lovely quilt with the exquisite vintage fabric, lovingly hand sew together to be used as the "blankey" by the kids? 

Get thrown on the floor and have their juice box spilled all over it? 

I'd rather have an expensive art quilt draped over the main sofa and only used by the rightful owner with delicate kid gloves on.

Raising your prices will immediately create instant customer focus on your products.  

Your client wouldn't even dream of throwing that $1500 dollar art quilt over those sticky fingered, juiced up little muggles.

2.  Expensive creates a mood of expert and elite status surrounding your products.

When you sell expensive products, people assume you are an expert.  You become well known as the one to go to for elite and awesome paintings or handcrafted items.  

The other side is true as well, if you have awesome paintings and handcrafted items at cheap will never get the notoriety that you deserve.

When you have prestige about you that says "I sell superior, quality products" selling becomes incredibly easy.

3.  High end price tags will motivate you.

If your unconscious mind knows that all it takes is one sale to pay the rent this month, you will get motivated!

Think of the stores that sell high end products, and compare them to stores that sell low end.  How do salespeople behave in high end boutiques as compared to a salesperson at Macy's? 

The salesperson at a high end dress shop will dress to the nines. They act as if they personally own every dress in that shop. They're classy, refined.  

If you are the person buying a $2,000 dollar dress they are going to treat you very well, be very attentive to your needs, help you in the dressing room and be happy to get you another size, dress or color.

The salesperson in the high end shop will be personable and help you find the perfect dress that suits you.

Don't you believe that you would be just as motivated and  even be more excited to sell a large ticket item than if you were to sell something for $20 bucks?  

How might you talk about something that costs $1200 dollars compared to something for $12?

4.  Do less work, make more money.

You may worry that customers will be furious if you double your rates.  Most likely they will be.  However, even if half of them vow to walk away, most times clients will realize that they were getting your products too cheap to begin with. 

Clients who really like and admire your products will realize that they were lucky to have gotten one of your products at the meager price they got it at.

The ones that do walk away?  Well, really they weren't your clients anyway.  Those customers were never going to pay more than $20 bucks on anything you sold.  They weren't going to keep you in caviar and champagne, that's for sure!

Cut your workload in half.  Wouldn't it be nice to be able to take more time on the products you are working on right now?  Maybe even be able to take time to create even better quality products?

5.  Higher prices attract wealthier clientele.

Wealthier people pay for good customer service, style and speed.  Why create a hand-made or art business that caters to bargain hunters?  Bargain hunters have Target for their paintings or trendy items. Bargain hunters are not loyal customers!  No loyalty at all.  They will ditch you for the cheaper competitor price as fast as their fingers can type the word Ebay.

Increase your prices and you'll attract people with money who will value your work.  I know this sounds kind of elitist, it is, but those without money will still buy your work, they will save up for it. 

If you would like to give your work away at cheaper prices for people who can't afford it that's up to you.  That's another story all together.  You are doing something to benefit those less fortunate.  That's wonderful, but this is not what I'm discussing here today. 

I'm talking sales and making money to support yourself and to keep creating hand-crafted work. I'm assuming that your goal is to make more money.

6.  High ticket items means you will be motivated to out perform yourself.

You'll pay attention to more detail, think about the little extras that stand for quality service.  Presentation of your products, packaging will become more important.  You'll even find yourself working faster.  Your productivity will improve.  Because if it doesn't you will miss out on the big ticket sale.

You will become more anxious that your products aren't "worth it".  This fear is actually a good one for your business.  It causes you to become more innovative, more awesome.  It's the key to success.  This driving fear will improve your products.

Clients will notice the little extras that you provide.  It will make the experience of buying your products more enjoyable.  The more your clients enjoy your products the more they will recommend you and increase your sales.  

Soon word on the street will be that you are the newest, trendiest, most sought after person in your market.  You'll find yourself attracting the perfect clients for your business. 

Your new prices will seem reasonable to you now.  Those old measly little prices?  Well, they'll be unheard of in even in your own mind.

7.  Raising prices causes increased customer satisfaction.

This is a wonderful "side effect" of raising your prices.  Higher prices demand more commitment from your clients.  Not only will they care for the products better, they will be sure to show up at your events, workshops, open studios more frequently and on time.

They will find out where and when you are showing and they will make plans to go to them.  They will stick to their plans and rarely will you have cancellations.  They become fans and will do almost anything to be where you are.

Complaining?  It just decreases.  Clients are happier with the product and they respect you and your work.  When clients decide to pay a high price for a luxury item they have committed to their decision.  They've worked it out in their minds that they are paying more because your products are worth it. 

Feeling good about their purchase, clients are less likely to return or complain about any product. 

In fact, I find just the opposite situation occurs.  Clients rave about your work.  I get call backs saying "I enjoy the painting you made so much!" or "Thank you so much, I really appreciate the work you've done."  

The bottom line is this:

Creating awesome products will require that you have prices to match.  Psychology has proven that low price in the customer mind, means cheap or low quality.  Low price also means low focus and attention from customers.

Raising prices escalates sales as well as your confidence. Give your prices a boost and watch how your mind finally relaxes and gives you permission to succeed.  

Expand and grow your art or hand-made business today.  Increase your prices and watch success happen.