How do you all feel about raising or lowering your prices when the economy hits a lull or if you just want to generate more sales?
I'm ambiguous about this. My bf thinks maybe lowering is a good idea but in other circles there is that idea that RAISING your price is a better plan. Any thoughts?
Replies
We've only done 2 shows but honestly I don't have the courage to raise my prices...I tend to start off with a larger price and see what interest in general the piece gets at the opening of a show, and if that 'maybe' couple that viewed it on day 1 doesn't show up in the morning of day 2 it gets a 30% discount... My concern is whether selling cheap ltd prints is hurting my original painting sales...But then the prints pay the bills...If you have the courage to raise your prices good for you!
Be careful about lowering your prices at a show. Understandably for all of us our raw materials cost have gone up. Try to have some smaller items around $4.00-15.00. The lower priced items get people to stop and look then they take the time to look at your other products.
If there is an item you want to move, make it a "show special" everyone loves a preceived bargain.
Good luck !
I think it totally depends on the area. When I do shows in Virginia Beach/Norfolk.... I know I can only charge a certain amount if I want to have sales -- and it's on the low end.. But when I go up to NYC - I have to increase the price at least by 35% or I won't sell anything.
I had a private exhibition in NYC where I sold everything I brought..... in 20 minutes!!!!! At a price higher than I would ever think of asking for in Virginia Beach.
So - I think you need to know your market. This fall - I will be an empty nester.... my youngest goes off to college. Finally -- I will be able to do shows outside of the low-price area of southern Virginia!!
I also do shows in Denver occasionally - and the market price is higher there too..... but not as high as NYC.
There is always going to be someone with higher priced work and someone with lower priced work. We can drive ourselves crazy trying to get just the right price, based on the area, the show, the economy, our fellow artists, what we think our patrons will pay, our expenses, etc. At least I do. Did... Do...
What I'm trying to do this year is be more confident about how I'm pricing my work. I raised my prices a bit because I feel the work has improved, not because everything costs more and my expenses are higher. When I price a piece, I ask myself how much I feel this painting should be, and whether I can feel good about how much I will net from that piece. If it doesn't sell right away, that's ok, it'll be there for the next show. It doesn't mean it's too expensive. Of course, I want to cover all my expenses and make money but I also need to feel that I'm not giving my work away.
I'm also not opposed to a repeat customer discount, discounts for checks and cash and all that stuff. But generally, I'm going to keep my prices the same now, for the rest of my shows. I'm not saying it's a perfect system but its good to work on my own confidence.
MY partner thinks we should lower our prices for our upcoming show but I think I am going to lower a few 'older works' but my newer more inspired works Im actually going UP on. I do think its that perceived value thing.. but I agree that the high end buyers seem to still be around and are not too affected by the economy.
I think you have to be careful about lowering your prices especially if you do a number of shows in the same area. Rather than lowering my prices I send out a discount coupon to those on my mailing list and sometimes I give one to customers at the completion of a purchase good on the next purchase. I sometimes also will have a show special - usually something I want to close out. I find that perceived value is very important. When you reduce prices, you reduce perceived value. 15% off of a $100 item - the perceived value is still $100. That's my system - I also found that price rarely made the difference but everybody likes discounts.
When I first started out doing shows 7 years ago, I would adjust my prices based on the competition at the shows. I found that this did not increase sales. People bought what they wanted to buy and the lower prices did not influence them. Now the only time I lower my price is on a few framed pieces that I want to get rid of. My shows have been mainly the lower to middle sized shows, with fees under $200 (Usually around $100). If I was doing more high end shows with higher fees, I would probably raise some of my prices.
My suggestion would be to lower prices on a few items, just to see if it makes a difference. If you are doing a lot of shows in the same area, I think it's important to keep your prices the same - even if the entry fee is higher and you are in a "better" part of town.
Since materials costs have gone up, not to mention show fees, I don't see how I can lower my prices. In fact, I've raised some of my prices to reflect what it would cost for me to replace the items (higher silver prices). In several instances, items made 2 or 3 years ago suddenly sold after I raised the price. I think this is an example of "perceived value". If your prices are too low, your work may be seen as cheap. If you raise your price the item is more special.
Rather than lowering prices, I designed a line of less expensive jewelry. Smaller, simpler, and easier to make - so less labor. I have these necklaces at the shows, though not prominently displayed, for people who are drawn to the expensive items but can't afford the prices. When they look sad that they can't afford it, I direct them to the more affordable line. They often buy these so they won't leave empty handed.
Robin Ragsdale
www.evenbetterimages.com
Short answer: Depends on your target market, IMHO. There is a lot of evidence out there that upper-middle-plus income types are not nearly so affected by economic downturn as others.