Pallet for Home

Pricing 101

Monday, October 1, 2012

Pricing...argh, what a funny and random part of my business.  I have gotten quite a few questions about it, so I thought I would share a little of what I have learned after selling for 12+ years.

What do you think this is worth?  I have had people ask me that about their items.  What something is worth is whatever someone is willing to pay.  That can vary greatly with region, audience, day, etc.  Do not price items based on what they are going for on ebay--many items do not sell at the prices you see and that is for worldwide customers.  Think about what you would be willing to pay for it if you didn't know the blood, sweat, and tears that went into it.

Know your market!  Are you selling to folks who have a lot of disposable income or to middle class folks like myself, who shop at places like Target and World Market (when they really want to splurge on something)?  I try to keep prices reasonable for the masses.  I would prefer to sell a certain volume of product than the occasional sale of a high priced item.  Yes, it is lovely when a higher priced item sells, but it is not my bread and butter.  I seem to be able to get the best price at our farmer's market, where the "yuppier" people like to shop so I can ask a little more for items at the market.

Be willing to deal.  Since the recession hit and people have been told to bargain, they have!  I often hear that my prices are so reasonable, but I always have someone who wants to dicker.  I am usually willing to bargain some, but it depends.  If the piece is a new one I have done and I haven't hauled it around a bunch, I might decline a lower offer.  At my antique space I am willing to give a 10% discount and know when I am pricing the item, what I will get paid for it will be less the commission amount and possibly less 10%.

Your time has to be worth something!!!  I do not have a lot of overhead.  Pieces are purchased cheaply or better yet, given to me.  But my time has got to be worth something--it is time away from my family and other important and worthwhile activities.  I love what I do, love painting and building, but I value my time and the hard work I put into pieces.  I try to pay myself a decent salary--at least $25 or so an hour.  This in an average.  Some pieces I get"paid" more, some less.  This may seem like a lot to some of you, but darn it, I am worth it :)!  Remember you found the piece, hauled it, cleaned it, fixed it, changed or painted it, displayed it, priced it, etc.  You have invested yourself in it and you are worth it too.

Know your competition.  Know others in your area who are selling similar items.  Do not undercut them, but have similar prices.  You can charge a little more, a little less, but be in the same ballpark.
Test the waters and be willing to be flexible.  If an item sells quickly and often at a certain price, you might be able to charge a little more and visa-versa.  Sometimes I throw a higher price on something I really love and I find people don't even bat an eye, they love it too and would pay that price all day long.

Good luck, have fun, be fair and remember to value yourself and your handiwork!

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