The price tag that you choose to put on your product has the ability to woo the customer or to send him away. It is a integral part of your marketing efforts. You can sell anything a chosen price if you market it right and vice versa.
Follow some quick and effective tips for deciding the optimum price of your craft and maximizing your profit.
1) The .99 effect
For the sake of psychological advantage trim down your prices to .99 of the previous integer. If you want to sell for $20, sell it for $19.99 instead.
In fact the latest studies suggest that prices that end with 7 seem to work better than other figures. So in the above case $9.77 would be your best option.
2) Pricing points
Every $10 represents a pricing point. Every increase of ten dollars in the price of the craft adds the resistance from the buyer to buy.
This doesn’t mean that only crafts with $10 sell well. Expensive crafts can have points for $50, $100, $500 and so on. This is just a guideline to check your pricing estimate, that’s all.
3) Selling at Craft Fairs
When selling at craft fairs, a few changes to your pricing policy may be called for. If you have a busy stall, don’t use the .99 formula for your pricing. When dealing with a lot of customers, exchanging the change of a few cents over every purchase can become time consuming.
You might make some customers impatient. You might also run out of change very quickly and have to round off your price to the next lower integer, hence reducing your profits.
A reduced price might also be called for since people often expect it at a fair. And since fairs also mean a lot of sales in a short period of time, reducing the prices to promote to boost the sales even more won’t hurt.
4) Offering Discounts:
Offering periodic and seasonal discounts woks wonders for boosting up the sales and increasing the popularity with the saving conscious customer. However, there has to be a system to the sales madness as well. Only give discounts on those items that you are just not able to get rid of after a long time.
Make a system out of it, like a having one or two end of season sale for your items. Or have a separate section for discounted items that can be a feature of your store or business. Never place the discounted crafts with the ones that are regularly priced. It tempts the buyer to make a comparison between the discounted and the regular priced crafts and ask for a discount even on the non discounted items.
The same rule applies while selling in a craft fair. Never group the discounted items along with the regularly priced items. Also, never make discounts a regular feature while selling in a craft fair. Your participation in a craft fair may range from a day to several days. And if the consumer knows that you are going to offer an end of the day sale on your craft products, then he or she just might wait for the end of the day to buy what they want.
Follow these simple and yet effective sales tips to boost your sales. But remember that generating sales should be a long term goal.
If you feel that sales are not happening in spite of your best effort, then it may be time to re-evaluate your business strategy including marketing and promotion.
In the end, remember that there are two things that determine the success of your home business. one, a quality product and second, good and effective marketing. Getting just one right is half the battle won and makes succeeding with the other so much more easier.