Worried you might be you are underpricing your handmade product? I’m glad it’s on your mind because pricing properly is the foundation on which you build a sustainable business. Regardless of your niche, style, medium, or experience level, pricing properly is key to having a handmade business that can endure, grow, and thrive.
To put it simply: if you aren’t pricing for profit, you don’t have a business; you have a hobby. There is nothing wrong with hobbies, of course, but they are best when you know you have one, not when you are trying to accomplish something else for a year and then realize you were on the wrong track.
I know how hard it can be to look around and see everyone how everyone else is pricing and wonder if that’s what you should be doing, too. Particularly in the low ranges of the spectrum.
To make it easy, here are the top Signs you are four key signs that you are underpricing your handmade product:
The UGH factor
You feel more UGH than YAY when you make a sale regularly. With the exception of busy seasons like Christmastime when you might be seeing a higher number of sales daily than you normally do, and you might occasionally feel a little UGH about that. I think we can all agree, though that in that case, it’s more because you want to chill on the couch and watch the Santa Clause a few times in a row while zoning out and not necessarily because you are underpriced. That simmering UGH, groan-inducing feeling is a telltale sign you haven’t charged enough for the product.
You never have money to do anything in your business.
A significant business bummer, indeed. Pricing properly will allow you to reinvest. If you cannot reinvest and do not see any path forward to that other than increasing your sales volume an unrealistic amount, then you are underpricing your handmade product, and you probably need to increase your prices asap.
Your customer interactions are more negative than positive.
Encountering the same sort of issues over and over with customers is always a sign of something. If you are attracting customers who are, for example, nit-picky more often than they are trusting of your artistry, it’s time to adjust your prices. Pricing is a gatekeeper and can help you align more fully with your ideal buyers.
You feel tired but not in a good way.
When I was in college, my classmates and I would spend long days and nights in the studios on the third floor of our department building winding warps, working on projects and brainstorming with each other. We were always hanging between exhausted and energized. Feeling mentally inspired and physically in need of a break is a good kind of tired. Physically we needed a nap, but mentally, we were all sorts of inspired. If you feel mentally drained more often than not, you might consider adjusting your prices. Pricing touches everything! Underpricing your handmade product. could be contributing to your mental drain!
Tough love alert: You feel the urge right now to rationalize them to me.
If you are reading this and at any point thought “yeah but,” or “maybe for others but…” or any other statement with a but after it… you might need to adjust your prices. Just be honest with yourself!
We have covered pricing quite a few times here on the blog and podcast, be sure to check out our top pricing resources and posts:
A free pricing workshop for makers I made in collaboration with Janet at Paper and Spark that goes even deeper into the signs you need to fix your prices and how to do it.
You’re pricing too low and the rest of us are mad at you: this is one of our top most listened to podcast episodes.
How to combat underpricing: this episode is what we would call a MUST listen.
If this post was helpful to you, share it with other makers! The more people in the community who have this info, the better and the closer we get to seeing proper pricing across the board.