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Posted on Pricing Your Work

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304 posts in 2503 days

#1 posted 04-28-2012 11:30 AM

Two extremes in pricing strategy:
Prices of commodity items (common items, lots of options and alternatives for the buyer, easy to make, etc.) must generally be priced at “cost plus”. So that’s what a lot of these “formulas” attempt to do. They start with cost and work up until you get to a price that includes some acceptable level of profit. But watch out! If the other guy can make the same thing and sell it for less, yours will sit on the shelf. So these are generally low margin items that you’ll need to make a lot of to make money.

On the other end of the spectrum are one-of-a-kind items. Artwork. These are much more difficult to price. You’ve got to figure out market value as: what would a buyer be willing to pay. What a lot of people do is search eBay or other auction sites for a similar item. Artisans at fairs “just know” from experience what someone would be willing to pay. It’s usually going to be high. After all, it’s art, and there’s no identical item available. People are willing to pay extra for something unique and beautiful.

So where do you think your speaker stands sit in that spectrum?

-- Some problems are best solved with an optimistic approach. Optimism shines a light on alternatives that are otherwise not visible.

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