5 Triggers that Influence Price

We’ve all seen the pricing formulas.

They're usually some combination of materials and time. They can get a little confusing too. Should we add the cost of wasted materials? How about the time we spent marketing ourselves on social networks? As an artist I feel, why not? Our time is precious. Our materials are precious. We’re precious.

However, after a little digging, it seems like what's important to me—the artist—isn't quite as important to me, the customer...why, that insensitive twit!

While I care about the logical stuff like time, materials, and effort, the customer is guided by intuition and other nebulous triggers. Which is why the relationship between artists and customers can feel a lot like “You’re from Mars / I’m from Venus” (don’t think anyone has used a John Gray reference since the nineties).

In short, each look at pricing with a totally different lens. So what influences price in the customer’s mind? Here are five triggers I have identified:

Status

The definition of status has changed. It’s not about expensive cars and diamond studded necklaces. Today, the question is:

“If I posted this item as a status update, would it get a reaction?”

Social currency influences real world currency. And that can determine if a customer is willing to pay more. There’s no bulletproof formula for acquiring status. Sometimes, the least likely product will capture our imagination.

Here a pencil takes a stand against digital dorkery. Nobody cares that it only takes a few cents to manufacture. Since it is status worthy, people are ready to pay an unusually high markup.

Scarcity

This is one trigger we as artists address by default. There are only so many items one artist can make at their studio, which naturally creates scarcity. But if too many people start making similar stuff, then the price automatically drops in the customer’s mind irrespective of how expensive the raw materials may be. It's the same reason limited run items work better.

Relevance

What is important to people right this moment? It could be a certain style that's trending. Or a certain material. Expensive items may lose some cache during a recession. Or it's possible that items made in the US or even made locally within a 50-mile radius might be what people are looking for.

These wallets by Heathered are made from old maps. They're relevant to me as an East Bay resident. But I may also look for maps of places I've visited in the past or plan on visiting. The wallets are also very well executed.

Story

Can the product carry a three-minute conservation? The speaking points would have to extend beyond the product. What inspired it? Who made it? Why? These are bike earrings by Kendra of Girl on Bike. Clearly the artist rides a bike. The story is authentic which gives the product a lot of depth.

To top it off, they're original (never seen earrings made of bike tubes). And relevant. There's a lot to talk about. How much time went into making these and the costs of materials take a backseat (no pun intended).

Practicality

This is the most rational of all triggers. We all want something we can use. If an item covers some of the triggers mentioned above, AND it's practical then looks like you just climbed a few notches up the value curve.

So how do we set a price when most of these triggers are beyond our control?

Here are a few steps that may work.

Ask

Ask your target audience and other artists. If you ask the right audience, you will get the right answer. But you must give them permission to tell you the truth. If the price I hear from them isn’t worth my time and cost of materials, I’ll move on and make something else. However If it's an item I enjoy making, for the pure fun of it, their opinion on price doesn't matter as much.

Test it

Some artists test market their stuff at a few different price points and see what moves the product. It may take a lot of trial and error, but at least it's accurate.

Trust yourself

Whenever I am torn, I give my artist side a timeout and channel the customer in me. He's available 24/7 and can bring a refreshing amount of objectivity to the whole process.

Try it out. It may just work. And please share what works for you. Thanks!

Posted by Vinit
The Whiteout (Junk Rescue)
Kaamchor (Art from Stolen Office Supplies)

This is part of a monthly series on the touchiest of all subjects, pricing! The first post can be found here.

What is it really worth?

Should you charge $27 or $39?

Hard to say. Well, unless you’re Ryan McGinness. Then it doesn't matter. You can eschew all formulas and charge whatever you like.

For the rest of us, here's my monthly attempt at making sense of pricing handmade.

Once a month, I will be covering pricing tips and strategies, unusual pricing tactics, interviews with artists (with a focus on pricing), social pricing experiments and pricing advice from around the web. Let me caveat this by saying I'm no economist (lucky me) or expert on pricing (seriously, who is?) but I am obsessed with the psychology of valuation, especially for something that’s hard to quantify, like creativity.

Thought I’d kick off this first post with a unique pricing strategy employed by New York artist Justin Gignac of wantsforsale.

Justin and his wife Christine think about what they want, paint it and charge the exact amount the item is worth.

A painting of a pizza slice $3, Nintendo Wii $239

'Buffalo wings' costs $12.99

'To see showgirls in Vegas' costs $250

Same canvas. Same whimsy illustration style. Wildly different prices. Blows my mind.

While Justin doesn't think he can use this strategy to make a living in New York City, his intent is to kick off conversations. Pricing for story telling. He has painted a check for a million dollars which he hopes to sell some day. Now that would make a great story.

Next month I'll share more thoughts on pricing and we can deconstruct, discuss, and debate. Fun times!

Vinit

The Whiteout (Junk Rescue)

Kaamchor (Art from stolen office supplies)

Monday's: Young at Heart

Hey crafting lovers! We know you can't get enough tutorials, event updates and other fun crafting info, but you guys aren't the only ones. When it comes to creativity, kids are old pros at this game.

Some of my own favorite memories growing up are of arts classes, with their endless supplies of crayons, glue, paper mache, glitter, pens, paint, beads and so much more. I genuinely enjoyed the few hours I had each week in school where I was given a the chance to work on something that had no wrong answers, only options. I was given freedom in the form of a paintbrush and a sewing machine.

It's a sad truth that kids get fewer and fewer of these kinds of opportunities. As budgeting for education continues to suffer, many of the creative outlets that we remember having as children are being cut. In a time when we are witnessing so much ambitious creative growth all around us, it seems a shame to not include our younger counterparts.

Why are the arts so important people of all ages? Crafting provides a hands on opportunity to challenge oneself and to lean about how things work. We develop better motor skills, the ability for abstract thought and we gain confidence. But most importantly, crafting, or making any kind of art, is FUN! It allows us the chance to let ourselves enjoy the moment, let go and be a kid.

With that said, Monday's weekly addition to EBAC with be dedicated to anyone who is young or young at heart, featuring:

• local young artists
• kid friendly craft tutorials (fun at any age!)
• updates on youth related art events

UPCOMING EVENTS:



NEXT WEEK:

How to make your own secret message in a puzzle.

If you have any suggestions or comments please let me know. I would love to hear from you.