Are your prices too high?
Not a chance.
How do you know?
In the video for Raise Your Perceived Value: Increase Your Prices, Megan Auman lays out 3 indicators you can use to cross-check your prices to find out if they are too low:
1. You’re not making a profit at the wholesale level.
True pricing should start with the wholesale price and add up to the retail price. But if you’ve never thought about that way, here’s a test: take your current price and cut it in half. Now add up the materials, labor, and expenses that go into making that piece. Is it higher than your wholesale price? Then it’s time to raise those prices.
2. You’re maxed out on production.
If you are making product 80 hours a week and still not making any money, that’s a sure sign that it’s time to raise those prices. And if your sales aren’t exceeding your production capacity yet, there’s another way to figure out if your prices are too low.
3. You’re getting raised eyebrows from your fellow makers.
When you price your products too low, you’re hurting ALL of us! If we want to teach people that handmade work is valuable, we’ve got to price it in a way that tells people it’s valuable.
Raising your prices can be scary. But it doesn’t have to lead to a drop in sales. Plus, it’s actually the quickest path to higher profits. (And that’s really the point of business anyway!)
So if you’re ready to increase your profits by raising the perceived value of what you make go to creativelive.com/raiseyourprices.