Are you holding back raising prices because you fear you will upset your customers?
How do I tell my clients?!
They’ll all leave me!
Maybe I’ll wait a few more months to do it!
Yes, these are a real problem – but there are some ways to avoid it.
The decision to raise or lower prices is a tough one, with many consequences for your business. But the decision whether or not to change prices is not as important as the decision about how to make sure that the change is reasonable.
The best way to do it is by testing your pricing and learn from the experts.
Here are a few pieces of advice from Etsy top sellers about increasing your pricing:
Kimberly Sumerel from ThePaintedLabel
“You do a comparative analysis. Just like when you buy or sell a home. You look at the market. You get an idea of what other products similar to yours are selling for and base your price off that. At least you will see what the trend is and not to worry about being too high. Better to be too high and come down in price than too low and increase your price. Good luck!”
Eveline Van Bergen from CamelliaChildDesign
“I opened shop in September and raised some of my prices about a month ago because I felt I was shorting myself the time it takes to create each item. I was dreading not enjoying making each piece for pretty much minimum wage. So I increased and sales actually picked up. I don’t think that increasing the price is related to the increase in sales. If someone really loves your item, they will pay $5 or $10 more for it. I really love the items I create and think they are truly unique and worth paying for, you should feel the same about yours. They are worth it!!”
Cynthia Mehlberg from SweetMeadowDesigns
“Search your competition for pricing and see where you fit into that. Then ask yourself how much would I pay for this? Between these 2 things- you’ll know your answer. This has worked well for me.”
For more info about testing your pricing, check this infographic below:
The point is you don’t know when to increase your prices so test, test and test some more. I can guarantee that some of the results may surprise you.
Oh, and don’t forget, if you want to test your pricing making sure that you at least know your correct costs first of all.