Limiting Belief: Product Pricing
A long time torment of handmade business owners has to do with pricing. Not just pricing of the product for sale, but even shipping costs seem to become a stumbling block at times. The thing about shipping costs is, they are what they are. At the bare minimum you have postage costs, totally out of your control. Beyond that you have packaging materials, basically a necessity but there is certainly a wide range of possibilities and costs there. No matter what, someone has to pay for these expenses – and ultimately it should be the customer. If you offer free shipping, the actual amount you need in order to send the product to the customer should be accounted for in the item price. It doesn’t make much business sense for you to shoulder all shipping costs.
No One Will Ever Pay This
The concern comes across my desk multiple times per month – the concern that the item price/ and or the shipping fees are such that “no one will ever pay this.”
Okay, first of all, you are not everyone and you know nothing about what everyone is willing to pay for this or anything else. It is in fact none of your business.
People Will Pay What You Charge
People WILL pay what you charge for your item and shipping as long as the following criteria are met:
- The product is presented well and in such a way that matches the amount being charged. Meaning, if you are charging a premium price, you must present in a premium way. This means great images, breadth in description, clear view of what the item is and what will be received.
- The shipping costs are reasonable and / or accurate. If you are selling a note card and I’m buying it from the next state over I don’t expect to pay $15 for that. International maybe, one state over for less than 1 oz? Huge road block to purchasing. Can you say abandoned cart?
- Policies and procedures are clear. If you only ship UPS and your shipping prices are higher because of that but it’s not obvious that this is the reason, then that’s bad.
- Communication is on point. If you are charging me a premium price, again, I expect premium support. If I email you, please respond within a timely manner and / or provide an explanation of what I should expect timeline wise.
- Be clear and thoughtful in your listings and presentation of information and there should be no real issues!
It only feels like “too much” when the service and experience doesn’t match up with what we are being asked to pay.
So yes, people WILL pay what things need to cost in order to keep your business solvent, but you need to show up and reduce all the hesitations surrounding your price point by elevating the experience and value.
You Might Also Like
- Episode 36: You’re Pricing Too Low (and the Rest of us Are Mad at You)
- Episode 013: The Benefits of Shipping Internationally