9/13/2010

Pricing Delimmas

I've been really struggling this year with how I want to price my inventory. The past 2 years I've streamlined everything into very narrow price points. I priced all of my scarves at $15 or $30. My soft wristcuffs were $7 and the wire wristcuffs were $11. Scarflettes were primarily $25 except for some lower end ones that were $15.

Last year at the Strange Folk Festival I started out like the year before with one quilt rack of $15 scarves and one of $30. Two years ago I sold more $15 ones but I sold a good number of $30 ones as well. Last year for the entire first day I didn't sell a single $30 scarf so I eventually took them down and put out all $15 ones. I sold some $30 ones at the Rock and Roll Show but I think with the economy in the state it was in, $30 was just too much of an investment for an accessory.

I'm seriously considering adding a third price point this year at $23. This is right in between the two and would give me more profit on those scarves that I don't feel comfortable selling at just $15. I will only have the top tiered scarves with the highest quality yarns at the $30 mark. They say it is good to have some items that are out of most people's price range to let them know that you are a quality vendor. Mike says that I should make it an even $20 since most people don't want to make change but I don't think there is enough of a difference between $15 and $20.

I'm even more confused by how I want to price my new scarf/hat sets and the single hats. I have used such a range of yarns and techniques on them that I really feel like I should individually price them as I see fit. I want to sell the sets with both pieces and I will probably connect them with twine. They will have the prices marked and I will have all of them on my table.
For example the scarf/hat set at the top of the post was made with a 100% wool, hand dyed yarn. My yarn cost were $8 but if I'd paid full price the yarn was worth much more than that. I used the exact same pattern for this second set and the time was approximately the same but the yarn is an acrylic that I only spent a few dollars on. I wouldn't feel comfortable asking for anything less than $40 for the first set but I would be happy with $25 for the second set.

I also have some individual hats with a wide range of yarn costs and time spent on them. Do you think it would be appropriate to price them all differently or would that be too confusing? I like it when vendors have some consistency in their pricing. When I'm looking at a display or rack I like to know that what I'm looking at is in my price range but I just don't feel comfortable putting the same price on such varying items. Any thoughts about either of my dilemmas would be greatly appreciated.

12 comments:

Ann said...

I don't know a think about pricing but I think rather than everything having a different price if you went with one set price for each different type of yarn used. Like I said I have no clue...lol

Pricilla said...

Perhaps if you kept your wools all the same and your acrylics all the same that would make sense to people?

I know I would pay more for wool than acrylic...

Nancy said...

Well, I have no craft fair experience, but, as a knitter/ artist, I say go with what your heart tells you rather than what you think people are looking for. I know you're wanting to sell and make things consistent for viewing and sorting, but, you just can't sort yarn into two piles most of the time. What about sorting by fiber content? You could include this on your tags and thereby educate the public on what yarn quality really means, there by discussing product care. Either way, I still say, if your gut says don't let go of it for $x, then don't! $23 may be an uneven number, but if you have the change at your booth, I don't think it would deter customers. Aren't most people paying by card anyway?

Meekiyu said...

wow that's a lot to think about... I do agree with pricilla to price the wool and acrylics separately and if people ask tell them the difference. For some reason $23 seems like an odd number maybe $25 for your more expensive scarves instead of $30?

elsiee said...

I think $23 is a good number - I noticed at my last craft show that more people then ever asked if they could have my $24 earrings for $20 I declined the first request because in the past people asked for a discount but then bought at full price, not this time - so I accepted about three requests to drop a low 20 something price to $20 even - that's my story ad I'm sticking to it!

Split Rock Ranch said...

There are some good ideas in the comments so far. I would absolutely pay more for a natural fiber garment than I would for one made with acrylic yarn (I seldom ever buy acrylic now that I know about the beauty of the natural fibers!) Handspun yarns used in a piece should absolutely sell for more than something made with a generic acrylic mill spun yarn. You could price them at $23 and then offer a discount to $20 if they buy two of them or like Elsiee said, if somebody offers you $20 for one of the $23 scarves you could consider accepting that offer and they'll think they're getting a good deal (people always love a sale or a good deal!) Some of my scarves are made with yarns that I paid $40 for and I have to price the scarf higher just to recoup the cost of the yarn - I might make $20 on the knitting/crocheting part of the scarf, which equals a couple of dollars an hour. Good luck on your sales!

Bonhomie Jewelry said...

Hi, Paige! I think you're right to price based on materials, time and technique. I don't necessarily think you need to change your prices - maybe just your venues. I'm learning the hard way that we have to value ourselves as artists. My prices are changing so that may price me out of a particular venue or shop but that's okay. I know where I want to go with my jewelry and I'm learning that I'm worth it ;-)

Good luck, Paige!

Kristin at My Art and the Mom in Me said...

"Mike says that I should make it an even $20 since most people don't want to make change but I don't think there is enough of a difference between $15 and $20."

I agree with you.. I think 23 is a great price for those that you feel are worth more than 15, I don't think the 3 dollars would make a difference.. and I do think that 20 is too close to 15.. Dang, I should have just left it at "I agree with you!" lol

I think individual pricing is fine. It would not deter me at all as a buyer.

KnittingsMyBag said...

I agree with Pricilla!

Lin said...

I would definitely keep your different yarns separate from each other. I like the different price points because we all have different ideas on what we can afford. You'll just have to watch your table though, and make sure things don't get switched around and folks are disappointed if they pick something in the higher category.

Got It From My Mama said...

Being a knitter I know exactly where you are coming from with the pricing situation. I think when people don' actually knit themselves they probably wouldn't know the difference in the wool you are using and that is why I think they would probably buy the cheaper scarves because they don't realise how expensive good wool is and it is very hard to work out costing for your time in knitting each one. I think pricing each item individually is too hard for buyers so I maybe just have two prices one for acrylic and one for wool and don't under-price yourself there is too much work involved.

Nico Designs said...

I agree with Nancy on sorting. As a consumer I do like consistency but I know that if I am buying a t-shirt it is not going to cost the same as a buttoned blouse...And I am more willing to spend more on what I perceive as quality (ex. wool) if it is explained (the difference).

 

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