Wednesday, September 26, 2012

Tangible vs. Intangible Value (i.e. It's not your pricing...)

When you’re not selling on Etsy - whether it’s for a day or a week or waiting for that first sale - there’s often an inclination to assume that your prices are the ‘problem.’  Sometimes you feel like if you lower them, you’ll pull in that elusive buyer, and to make matters more confusing, you might (once in awhile), but before you lower your prices, consider the following:

1. Are you prices in line with your competition and are you comparing apples to apples?  Say for example that you sell lip balm, and you look around at other successful sellers and price your lip balm accordingly.  Have you also looked at what products your competitor is actually selling vs. offering?  Maybe they have a large varied inventory and price their lip balm lower to keep it moving because they sell more lotion/soap/perfume than lip balm. Or maybe lip balm is a gateway product into their store and those folks tend to return and buy other products so they’re willing to take a hit on that item because it pays off in the long run.  Or maybe they price a single lip balm a bit higher because it steers buyers to buy a pack of 3 where the buyer gets a better deal and they make more profit.

2. Once you decide on the right price for your product which allows you a decent profit, are you doing justice to that listing by taking a compelling picture, writing a compelling description and showcasing the type of seller and shop you represent?  

3.  Are you ‘adding value’ to your product?  Added value can be tangible or intangible.
Tangible:  An offer within the listing for free shipping, a free sample sent with each order, or an absolute no fuss returns policy.
Intangible:  Do you model your gloves on a pretty girl standing in the cold and benefiting from their warmth?  Has your scarf been featured in a popular magazine?  Has your art decorated the walls of a television show?  Is a particular item a best seller in your shop?  Is it part of a new line you’re debuting?  Are your items collectable and have you linked to the other pieces in the collection?  

If you can master the art of intangible value, you’ll hit the ground running and be able to price your work to sustain your business.

Not quite sure why I woke up with this on my mind today, but now it's out and on the page so it's back to the bench. :)

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