I originally wrote these rants with arts and crafts professionals in mind. This was a period when I was educating these folks on how to run their studios as the small businesses they in fact are. Bear that in mind as you read about craft widgets and retail shows. The principles, however, are the same as with any small business, and apply whether dealing with the manufacture of art or industrial widgets or service businesses selling time and expertise instead of goods. These are practical tools to help any businessperson manage a business better.
The price you decide to charge is but one aspect of the pricing equation, and not necessarily the most important one to your customer. The buying decision is based on the overall package presented to the customer, of which price is just one component. Many buyers will pay a higher price in return for other tangible or intangible benefits associated with either the product or the seller. You can use these other dimensions of pricing to good advantage if you understand how your prospective customer perceives them.
(more…)
