Do you have difficulty knowing when and how to increase your prices?
Consider a price hike when:
1. You realize you have underpriced your work to begin with. This is common. Perhaps you miscalculated your expenses, or aren’t paying yourself enough for your labors. Did you forget to add profit into the mix? If you don’t increase your prices, you could end up paying yourself nothing and going out of business.
2. Your work is selling extremely well, and you choose to raise your profit margin. It’s always easier to increase your price than decrease it, so go easy here, but gradually inch up your prices and gauge whether it is making a difference in sales. Always focus on the value of your work in your marketing.
3. Your overhead, materials or labor costs go up. This is a fact of life, and your customers will intellectually understand this, even though they may not be happy about it.
Don’t apologize for price increases – look your customers in the eye, or address it directly in correspondence. Prepare ahead for any objections from your gallery buyers, and even head them off by giving a solid reason with your message.
It’s important to continue to convey the value of your work to your clientele, which is why they are buying from you. Wholesale buyers will rarely discontinue a good relationship with a vendor because of a price increase. Don’t let fear stop you in your tracks when an increase in price is necessary for your business to stay healthy.
Sometimes, artists will announce a price increase in advance and encourage buyers to place an order in advance of that date. This is a considerate gesture to your existing buyers, and if strategically planned, can bring in orders during a traditionally slow period in your business.