I just finished reading Seth Godin‘s new book, Linchpin*
This is certainly true of craft. If you’re trying to build a business being the cheapest on Etsy or at the craft show, eventually you’re going to lose. The economies of scale will not support you. And if craft in general tries to compete with other marketplaces based solely on price, we all lose. It costs more to make things by hand, or in small batches, in developed nations. It’s impossible for craft and indie-made goods to generate a competitive advantage based on price.
So how can we compete? By being creative, by connecting with our customers, by embracing our differences, by telling our stories. And we can do this on both a community and individual level.
But what if you need some help telling your story and communicating what makes you unique? Well, Tara Gentile, editor of Scoutie Girl, has just launched her first online class. Between the Lines: Telling the Story of You and Your Business* was developed from Tara’s experience sharing stories from the indie community. It’s designed to help you better communicate the stories behind you and your business – stories that translate to better blogs and more compelling websites. It’s about helping you better connect with you customers so that you can stop trying to compete solely based on price.
I know I’m not alone when I say that I’m tired of seeing underpriced and devalued craft and indie-made goods. It’s time to stop racing to the bottom and start reaching for something better.
*Note: Links to Linchpin and Between the Lines are affiliate links. But I’m recommending them because I think Seth and Tara are amazingly smart people who can teach you a lot!
PS. If you’re looking for other ways to help build your business, there’s still room in my April 17th workshops with the PA Guild of Craftsmen.
Megan Auman is a designer, maker, educator, and entrepreneur who has built a multi-faceted business around her passion for great design and sustainable business. Her 
So incredibly true. Craft cannot compete on price nor should it try. Your efforts are better used setting yourself apart from mainstream consumerism by creativity, uniqueness and the story you bring to your work. Thanks Megan for a great post.
Thank you so much for this excellent post! It made me think of two things:
First, this post from Productive Flourishing, on why we often undervalue oursleves: http://www.productiveflourishing.com/why-you’re-undervaluing-yourself-and-how-to-stop/
And second, this idea, which I’ve been kicking around for some time now: there’s our community, and then there’s our market. Our community (i.e, other crafters) may not be our best market. Other crafters tend to have a grasp of the skills we’re trying to sell, and therefore, may be less likely to pay a fair price for them. But outside that community is a market of people who don’t have the same skills, and therefore would be much more likely to pay that fair price.
…But how many craft-business owners are really reaching outside the community with their products and services?
I know the market is harder to reach, but it seems to me that they’re a wiser target.
sisterdiane – i couldn’t agree more! i get so frustrated when people tell me how they’re promoting their shop on the etsy forums or commenting on blogs of other sellers. sure, both of those actions can be valuable for different reasons.
but doesn’t anyone think outside the box?
other crafters may help you spread your message… but in the end we need to talk to the people who are going to buy. if you want to make a living, make a living!
i’m not sure i added anything new… just wanted to say: you go girl!
I totally second this about promoting craft to a market other than the already craft aware and other crafters. I have so many friends who love to shop and will spend good money on cute jewelry, accessories, etc, but they’re not searching the Etsy forums or reading the comments section of a craft blog to find the latest, greatest new thing. I agree with Tara that there is value of course in promoting yourself to other artists, because we are generally very supportive of each other, but it absolutely can’t stop there. We need to be targeting those weekend mall shoppers… they love to shop and will spend plenty of money on the kinds of things we make, we just need to make them aware of what’s here.
Great point! A case study of my own buyers reveals that those who turn into repeat buyers, refer their friends to me, chat about my fabrics in forums unknown to me, or send me sweet notes about their project plans are women who love indie/handmade but haven’t made a thing since they crafted as kids. Their enthusiasm is unbridled, and they will pay whatever is necessary b/c their desire and pocketbooks match. Having a product/story and presentation to meet their expectations is key b/c their word of mouth advertising is golden!
I totally agree with this. I struggled in the beginning with price and trying to price according to what I thought people would spend on my bags. When I really costed out a bag with materials and my time, I saw I was just selling for cost. That was when decided it was time to sell my stuff for it’s true cost (nicluding my time).
I find there are two types of buyers:
1. those that want to go to the major retailers and be sheep
2. those who want to stand out as an individual and look for something unique. My customer is #2
I agree that our value is beyond the product itself, it’s about our spirit and unique point-of-view! Most everyone appreciates beauty and how beauty adds magic to the world. Our products are expressions of beauty that can resonate with many types of customers. When customers know the heart and soul–and the story behind the work, they can show off their purchase with pride. They can share a the cool story about the maker and her work with pride. Can you do that with a bland, mass-produced knock off product? I don’t think so! : )
I completely agree that we cannot compete on price! Not only does this undervalue the work of the craft community as a whole, but part of the reason people buy from us is they like the idea of purchasing from an individual rather than a faceless corporation. I know personally I’d rather buy from a Mom & Pop shop, where the people know me and give me specialized products and attention, rather than from, say, Nordstrom’s.
As for Sister Diane’s comment: Amen to that! While it’s great to share our trials and tribulations, and have the support of one another, if other crafters are the only ones we share our stories with, we’re missing out on a ton of potential business.
[...] Read the article here. [...]
I often feel guilty because I don’t focus my marketing and virtual socializing with artisans. Since I have streamlined and learned more of my niche, I try to focus on the possible customers, repeat customers and wholesale. This also means that I have to adapt my marketing for the different demographics. For example, I market my journals to writers/bookstores differently than I do for those who use journals as giftgiving/gift boutiques since there is a different emotional attachment to each.
As for pricing, I often hear I undersell myself. I don’t think it’s fair to assume that when an artisan has a certain price point they are underselling. I keep detailed records and know my supply and labor costs for the journals that I make and it’s surprising lower than expected. Because of this I can keep my costs at what I feel is an affordable price point for consumers while they purchase something that is OOAK.
On the other hand, I know from keeping records when I created upcycled handbags, I was extremely underselling myself. I was in a mini-debate over what do I focus on and for the past year I had already been converting my focus. Thankfully when I went through a cost analysis at the end of the past year, I could really decided what to price items. So I think when we create we need to really keep track and analyze because each “product” is OOAK and so is the cost.
BTW, I’m really enjoying this blog and reading everyone’s feedback and it keeps me thinking! Thank You!
Every time I see vintage-looking products that have a “Made in China” sticker on them, it makes me even more determined to toot my own horn and tell potential buyers that my products are up-cycled vintage goods made here in the USA. I am trying to appeal to the customer that wants to keep their money in the USA, and to the customer that is sensitive to the “green” movement. Buying vintage goods is “going green” at it’s best.
Excellent article & excellent comments & thoughts. It’s been interesting seeing what everyone has to say! I have to agree that when we under price ourselves, we not only hurt our own business, but the handmade community, as well. Thanks for the posting & the discussion.
I used to work in the wine industry writing copy – the copy that really resonated with customers (and, hence, sold pricier wines) was all about what differentiated this particular winery from all the others (think terroir, vine age, family-owned, that sort of stuff). Perhaps this is the same message we should be putting out to our customers? No, we probably don’t want to talk about our age, but why not talk about the techniques used, or the places or people you source from (especially if they, too, are craft businesses)? Reading about a seller and their life either in their blog or their profile really connects me to a persons work in a way that a storefront or a shop aisle really doesn’t. Like the typical wine buyer, I’m less inclined to think about comparative pricing if I’m sold on the producer.
[...] Well, the simple fact is, we can’t match the “everyday value” of Walmart.. Craft can’t compete on price. But independent designer and expert crafters can provide a special sort of value that mass [...]
[...] Well, the simple fact is, we can’t match the “everyday value” of Walmart.. Craft can’t compete on price. But independent designer and expert crafters can provide a special sort of value that mass [...]
[...] you can afford, he asserts. In wrapping up, Godin states: All marketers tell a story. The “this is the best price and value” story is just one of those available, and in fact, it’s rarely the most effective for [...]
[...] believe me? Well, I’ll leave you with a simple example from the hand-crafted art industry (http://craftmba.com/2010/03/31/craft-cannot-compete-on-price/). In this example, craft-makers and designers attempt to gain clientele by making themselves [...]
[...] products on the only variable that’s left – price. And as I’ve said before, craft cannot on price. That’s a game you won’t [...]
[...] In order for you to employ a value-based pricing strategy, you need to be able to explain what unique value your product provides. Which means your product needs to provide a unique value. Part of taking an offensive pricing strategy means finding ways to differentiate your products from everything else on the marketplace. If your products are identical (or barely distinguishable) from everything else on the marketplace, then you will have to take on a defensive strategy by default. The only thing you have available to you is to compete on price. (And be now, we all know how I feel about craft trying to compete on price.) [...]