Friday, May 29, 2015

The Problem With Low Prices

When ever I am working on a concept for a new item to list at Queen B's Busy Work, I always do a search on Etsy (and sometimes a few other sites) for similar items to get an idea if my pricing seems reasonable.  And every time I see it - people selling a similar item at low, low prices.

I often feel that I under price many of my items.  But, I see many sellers who have priced their product so low I imagine that they can hardly be covering their cost of materials, not to mention accounting for their time or making any profit on the item.

photo: publicdomainpictures.net

At first it may seem like a great idea to price your product low.  Give you an edge over all the competition out there in the online market place.

Here's the problem:  Underpricing is bad for you - and for me.  And for every other seller of handmade items out there.  It devalues the work done by all of us.

When you price your items so inexpensively - you are telling all of our potential customers that YOU believe that's what they are worth. Not much. And why would they want to purchase something that YOU (the person who hand crafted this item) doesn't consider to be worth much? They can get poorly made junk at the big box store down the street and not pay the price of shipping.

And when that same customer sees my items priced at more (what I believe it's worth based on my cost of materials, my time, and a small profit) they wonder why they should pay that much when clearly the item isn't worth much based on the price point you are willing to sell at.

I KNOW how much time goes into hand crafting quality products.  I know that my time is valuable.  Just as valuable as anyone else's. And I...  no, WE deserve to be paid a reasonable amount for the work we do.
photo: publicdomainpictures.net

So, PLEASE - take this into consideration when pricing your items.  Stop underpricing yourself.  Stop underselling ME!

And if you really don't feel your product is worth more than the cost of materials - perhaps it's time to put your shop on a break.  Take time to develop skills.  Until you feel you are doing quality work which is worth selling at price which pays you for your time.


Have a BEEautiful day,
post signature

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...