Episode 005: Price and Value aren’t as Related as you Think

Price is one thing, value is another.

We often associate price and value, but they are two totally different things. Price is a fixed, factual amount. Value on the other hand is more fluid – we all have different values and considerations on what is important to us. Value is a variable and you can’t decide the value of something to someone else – don’t let this influence your pricing.

In this episode:

• It will suck, probably, but do the math.
• What to consider in pricing beyond time and materials.
• The factors that warrant and justify price increases.
• Thoughts on the reality of how long things take.
• What to do if the price your formula turns out seems exorbitant.
• An example of a time when price is low and value is high to prove that the two are not related as closely as we think.
• A reminder that you aren’t your customer *wink*.
• Helping you understand what your buyer might find value in beyond the result your product provides.
• Two things about your customers that are NONE of your business
• More more more!

Related reading:

Thoughts on Pricing and Value in Handmade

6 Reasons You Need to Start Charging What Your Worth Now, Not Later

A formula for determining price: Cost Price (Labor + Materials Cost) x 2 = Your Wholesale Price, 2x wholesale price = retail price

Annnnd another article on the topic.