Pricing

Sigh, this is a touchy subject.  Everyone has their own formulas for pricing that work for them.  Here is a good example of a pricing formula.

At a recent Mompreneurs Meet Up we were doing an ice breaker exercise and the question came up, what business mistake will you never make again?  A very wise woman answered, I will never again undervalue myself.  WOAH! This struck the nail on the head.  I had undervalued myself for a long time and learned the hard way that my time and skill set are valuable and cannot be negotiated. 

Because I'm the one making the pieces, I don't see the skills as anything special.  Let me rephrase, I don't see my skills as outside my creative reach.  But, thinking about my customers, they do not have these skills.  This is why they are shopping with me, because they value my skills and creativity.  That being said I need to value them also.  This gave rise to my pricing formula and the fact that my prices are set and not negotiable. 

Sometimes at shows you will get those people who look at a price and give you the "you want me to pay what?" look.  In the early days of selling, this made me doubt my formula.  Now, I just ignore it and they move on because I know that a customer will come along who loves my work and appreciates the time and skills put into it and will show that appreciation with a purchase.  People are willing to pay for my quality items.  When I thought about it, I am willing to pay for quality items, like tools. So, why shouldn't my customers be willing to pay for quality jewelry.  (More on how to target those customers coming later)

I have found that in order to create a successful business, you need to cover your costs and pay yourself.  The formula helps me to take all of that into account.