How to Know When It's Time to Raise Your Prices
**Article Updated 6/1/2020
**Disclaimer: This post may contain affiliate links.
It's probably your first instinct to undervalue your work and your time. As sellers and consumers, we tend to think that lower prices are better and will attract more buyers. However, with handmade items, that's not always true. In fact, it's rarely ever true.
You probably don't think that most people will pay what you're asking for a specific product, but if you make it clear how much time and materials go into something, they will gladly pay. When you sell yourself short you're actually attracting the wrong type of customers. The saying "you get what you pay for" comes to mind.
If you think you might be underselling yourself and your products, here are a few signs that you should probably raise your prices:
1.) You don't have a pricing plan in place. A lot of things go into setting up a pricing strategy including supply and demand, your competitor's pricing, cost of materials, and more.
Pricing your work is a science. Guesstimations and just throwing out a random number is not going to make you a profit.
2.) You get a lot of traffic to your shop and/or products, but little to no sales. A lot of us don't understand how pricing too cheaply can actually drive customers away. As I mentioned above, when it comes to handmade, people are not looking for cheap. A cheap item will almost always be perceived as low quality.
I've raised my prices several times over the years and I am still consistently selling those bestsellers, even with higher prices!
3.) If you're making too many sales. Yes, this can actually happen. It's a good problem to have, but if you're making more sales than you can keep up with, it may be time to raise your prices. This way, you'll still be making sales but they'll come a little slower since you'll be attracting the customers who seriously want your product. You won't necessarily be attracting impulse buyers with higher prices.
Have you raised your prices for any of these reasons? Are you afraid to raise your prices, but think that you should? Leave a comment below. I'd love to hear your thoughts and questions!