It's All In Our Heads
Every single day I have at least one conversation with a member of the National Network of Embroidery Professionals or an embroidery business owner where the owner says, "Oh, my customers won't pay that..." when I propose a price that I think it the lowest price they should charge for a specific product or order.
Here is the kajillion dollar question - WHY do you think that?
- It is because you have not tried that price?
- It is because YOU would not pay that price? (NOTE: if this is your gut reaction answer, there is a LOT more to talk about, please call me)
- It is because you know their personal finances so intimately that you are making an informed decision about what they can afford?
Seriously, WHY DO YOU THINK they will not pay that price?
Clearly people will pay top dollar for things they do not NEED, but that they WANT, as demonstrated by the product featured above. Does anyone NEED a $135 monogrammed leather card holder? Nope, I am pretty sure we call all survive without one. Yet this company offers this lovely product at a highly profitable price. And people buy them with the monogram - A LOT!
Think about it -
- Your work is custom.
- Your work is solving a problem and/or meeting a need for your customer.
- You are creating this custom solution for them on demand - providing exactly what they want with what they want on it, in the right colors, sizes and quantities.
In many other industries, all of these elements combine to create a price structure that is TOP DOLLAR driven, not lowest price driven.
Why not give it a try?
Set the price of your work to reflect what it is WORTH, and see what happens.
Many of the embroiderers that have tried this have been blown away at how their businesses have grown.
They no longer cater to the lowest price seekers. Their customers value and appreciate what they offer. They are making higher profits and working with better customers. And they are having more fun too boot.
Here is one example that proves this approach to value-driven pricing is valid: Starbucks! They charge $5+ for a cup of coffee that you can also get a the local corner gas station for $1-2... And people WAIT IN LINE to pay TWICE AS MUCH for it! Just sayin'....
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3 Responses
I will always value my work. If someone only wants a deal my business is not the right fit for them and I let them know. There have been times when they say I am to high then go some place else only to call me later saying they want to work with me.
it's a little scary to price something with the thought that you're going to be turned down because "the price is too high " We work in a very competitive area and people are able to shop at several locations to get the best price. However, with that being said, we continue to get new customers all the time and keep our present customers also, even though we are not the cheapest or the biggest. The one thing that I have learned is that people are willing to pay for something they like if they feel like you know what you're doing. Being confident in talking to your customers goes a long way, and listening to them for their feedback is invaluable. it's a fun business to be in.
Your article is spot on. I do not want the lowest price shoppers. I price my items based on what I feel comfortable making. I do custom piece work, not Walmart 100 of the same thing for $5 each.