Are your prices diversified? Capture more business by reaching new markets and new customers.
When you make a sale of your work to a customer, do you know what their next logical purchase from you should be? Have you ever thought about it? If your work is designed to be collectible, you might have created a series that works well together, hangs perfectly in a grouping, or completes a set. Those strategies work well, because they cultivate a repeat buyer who is already loves your work, has committed to a purchase, and is easier to sell to again.
But, when new collectors want to “buy in” to your brand and your line, they might not be able to afford an original of yours right off the bat. You will want to gain those new collectors, who become those repeat buyers, by offering price points that are easier on their wallets, and allow them to own your art even though they aren’t yet affluent to buy a big piece.
This is where spreading your price points makes a lot of sense. If everything you make and offer is within a narrow range, you are ignoring potential customers at the low end and at the high end who might need the right price point that most appeals to them.
For example, if you create a handmade jewelry line, you might have some amazing showpiece necklaces that sell for $1,000 and up. They grab attention, but customers with a tighter budget opt for the $80 earrings that still show your unique style and that are made by you. This is their little piece of your creativity, your imagination, your brand and all the wonderfulness that entails. As they continue to collect, they may be able to increase their spending because they really value what you make, can more easily justify the cost, or have a bigger budget for discretionary purchases.
Other collectors may go for a $300 bracelet or small necklace, and there are customers to whom that $1,000 is not a stretch. They may even look for a higher-end piece that’s even more special, unique or one-of-a-kind. Have you considered raising the highest prices you now have to a new level? That is another marketplace entirely, and you may find that your work has an audience there.
Here’s another reason that a price point spread matters: the very same customer may be willing to pay a lot more for your work for certain reasons. If they are purchasing a wedding gift, for example, they may be willing to spend $250 on that fabulous ceramic centerpiece for the bride and groom. If they are purchasing a birthday gift for their niece, they may be looking at a more reasonable $40 or $50 price point. And for themselves? Well, the sky is often the limit if they fall in love with what you make and are willing to splurge to get an amazing piece of wearable art, or a fantastic painting that will transform a room and make them happy every time they see it.
What is your current price point spread? Have you considered your market, and why they are buying? When you design your line, do you have a good gift price range for weddings, holiday gifts, anniversaries, birthdays? Does your business strategy include repeat sales to collectors, and knowing the next purchase they should make? It can broaden your market, increase your sales and reach whole new levels you might not have imagined.