Lots of newbie craft business owners start out underpricing their items because they think of their pieces as commodities. But here is something a craft artist must keep in their thoughts: a commodity is an undifferentiated item that can be bought anywhere.
A handmade craft item can be transformed from a commodity by shifting the value elements in your displays, packaging and marketing materials.
If you want higher profit margins for your craft business, you have to differentiate your products. This can be done in several ways:
1. Quality. People will pay more for a better experience. Producing the finest quality work will convey a promise of pride and pleasure.
2. Branding. Enhance your reputation as an artist by way of including testimonials, awards, reviews, and education in your promotional materials.
3. Delivery. Make it known that your item is available for immediate delivery.
4. Scarcity: Statements like “this is a one of a kind item” or “this is a limited edition series” will evoke the scarcity response.
5 Guarantee. Take away the risk from shoppers and guarantee their satisfaction or you will return their money.
More ways to increase perceived value of handmade crafts:
Unlike mass produced items, handmade collectibles increase in value over time.
Create a sense of urgency: “Usually at events like here, a piece like this sells and then it’s gone forever”
Offer a wide selection: “choose from six colors”
Create themed lines: create items in themes like cats or dolphins or butterflies or whatever other theme someone might collect.
Compare the item to something of far greater value, like “That’s just like being able to buy a museum piece for the price of ____”
Spruce up your packaging. It’s true that people will pay more for craft items that come with fancy packages.
Feature your displays. Shining display lights on items at trade shows has been shown to increase sales for craft business owners.
Issue a ‘Certificate of Authority’ with each item you sell.
Promote your craft business with photographs and videos. Include more than one photo for a craft item. Show it from different angles.
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