Pricing Handmade: How to raise your prices

Pricing Handmade: How to raise your prices


So you know you need to raise your prices
or you think you need to raise your handmade prices, but maybe
you’re not sure exactly how, like do you just put your prices up?
Do you need to announce it to anyone? How do you increase your handmade
product prices? Let’s dive in. Hi, I’m Deb, founder of Tizzit.co, a membership community for
makers and handmade shop owners. Pricing is a topic that I’m very
passionate about and in fact, I have done a few other videos to help
you calculate your prices correctly, get past the fear of
putting your prices up, and also a video all about why
you should put your prices up. I’ll make sure to link all of those below
for you so that you can go and binge watch some pricing strategy videos. I’m assuming that if you’re here it’s
because you are ready to increase your prices, but you’re just not
sure how to actually do it. Maybe it still feels a little scary and
you don’t want to lose customers because of it – that’s what we’re going
to be talking about today. I’m also assuming that you are confident
in the quality and the value of your product and that you can back this price
increase up with your carefully crafted brand and the shopping experience
that you offer your customers, so in other words, perceived value.
So if that sounds about right, let’s dive in with strategy number one. Strategy number one is to
simply put your prices up. Just bloody do it! Step one,
put your prices up. Step two, make more money. This is something that we talked about
with my friends Mikaela and Jess on our podcast, The Business of Making, which
I will link to below the video as well, but seriously, that’s
pretty much the gist of it. You do not owe anyone an explanation
as to why your prices are going up. You don’t even own anyone a heads
up. It might feel like you do, but you don’t. The right customers will stay with you
despite the higher prices and anyone that leaves or doesn’t want to purchase
your product anymore or says, “Oh, I can’t afford your prices anymore” –
that person wasn’t your ideal customer in the first place so let them go. I know this still can feel kind of brutal, so let’s talk about the alternative, which is announcing your price increase. I do you actually recommend you
announce the price increase, but you can go without announcing it if you want. The reason I like the
announcement strategy is that
not only it’s fair to past customers and it shows that you care
about your followers and subscribers, but it also gives you an opportunity
to actually make some sales before that price increase. So strategy number
two is announcing the price increase. The first thing that you want to do here
is make sure that you don’t announce that last minute. You want to make sure that you announce
that maybe even a month in advance. So put a date in your calendar,
on which you say, “okay, this is when my price goes
up” and then announce it, but don’t announce it and then put the
price up the next day because there’s simply not enough time for people to
even get the information and read your email or however you’re going
to let them know about it. The real stress factor here that I’m
sure you’re thinking is “okay, cool, announce it, but how do I do
that?” Here are a few tips. First, you want to state
that the price is increasing. You don’t want to try to over
justify it or to apologize for it. Just be straight, direct,
honest, and to the point. You want to give them a clear date,
so you want to say something like, “we will be increasing some of our prices
or all of our prices on…” and then the date that you picked. Then you want to remind them
of the value that they get, and you want to do that in the way that
sort of makes them understand that you have costs in your business, but you don’t want to have to mention
your actual cost or to justify your actual cost because that’s
none of their business. What I mean by that is that
you could say something like, for example – I’m going to take my
business name as an example – “Tizzit only uses the highest quality material and
we know you wouldn’t have it any other way.” Or you could say something like, “this increase allows us – or allows
me – to keep offering you the highest material quality” – so if
you work with gemstones, “the highest quality gemstones while ensuring…” and then maybe some
other benefits of your product, like “while ensuring our materials are
sourced responsibly” or are eco-friendly or whatever it is, that’s
the benefit of your product. Then you want to remind them the date
again and explain that they can still get your current prices until then. That is sort of making them feel like
because they’ve been such loyal followers, subscribers, stockists or customers, they have a month or a couple of weeks
or however long to still buy at your current prices and it’s almost
like you’re doing them a favor. So you might want to say something like
“these changes won’t take effect or be applied until *that date* so you can
shop our current prices until then”. A bonus little tip or a bonus little
strategy that you can use either with strategy number one, so if you’re not announcing your price
increase or with strategy number two, if you are announcing your price increase, is to have a sale with your higher price
as the new price and discounted price as your current price. So let’s say that you have
a product that’s going to
be $50 and that’s currently $45. You may want to put it up to $50 right
now but run a sale for the next month so that it is still $45. It’s a really nice way to sort of
ease into the increase, and yes, this rhymes, but it’s also great because the new
customers that you’re going to get during that period are aware of the new prices. They know when they purchase at $45 that
this is a sale and that the real price moving forward is going to be $50 so you
don’t have to keep announcing that the price is going to go up. I
hope this was helpful to you. Really when it comes to
increasing your prices, there is only one thing you can do
and it’s to put your prices up. Now, as I mentioned, I do have a
lot more videos about pricing. If you still feel scared or unsure if
it’s going to cost you business and sales and customers, there’s a
video just about that below. If you’re not sure whether you should
be increasing your price or not, there’s a video for that below. And I also have a free pricing calculator
that I’ll link to below that you can go and download that’s going to help you
do the math to actually see whether or not you might need to increase
your prices. And of course, if you like this video, please give
it a like and subscribe to my channel. I come up with a new video every Tuesday, always with the goal to help you start
and grow a successful handmade shop. Until then, bye bye!

2 thoughts to “Pricing Handmade: How to raise your prices”

  1. This is a great video, so important for artists and crafters to understand they are in the luxury market and not chase the wrong customers. 👍👍👍

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