Again thank you.

Trudy

Yes, I think it’s important for makers to ensure that they buy supplies at wholesale prices, but when you’re making artisan objects by hand there always needs to be a little room for play in the production process. “Lean” doesn’t always fit in our world. (And yes, I totally understand the value of lean manufacturing. My father owns a machine shop and my brother is lean certified. I practically grew up with the concept!)

I also think you aren’t giving the middle class enough credit when it comes to their spending habits. In the example I give above, I’m not suggesting that the maker heads into an exorbitant price point. Raising her prices from the $35-$40 range to the $80-$120 range is not going to price her out of the middle class – that’s less than most middle class citizens pay for cable, or the monthly payment on their toyotas. (Oh, and to answer your question, I would rather sell a Porsche than a Toyota – as an artisan, I’m not in the volume business.)

The other thing I would dispute is the notion that most smaller boutique brands are using the Internet as their primary means of distribution. I would consider myself a small, boutique brand, and about 95% of my sales come from selling to stores and boutiques. Most of my products are sold in physical locations, and it’s a business model that can work for many makers!

The reputation I’m talking about here isn’t just one of quality, but of being an artist, a visionary, etc. There’s just as much a need for art as an efficiency produced product, and in our current state of things, I would even go so far as to argue that we need art more. The world is full of efficiently produced products, I don’t want to be just another one.

Just like facebook caught on first with college students, and then expanded once others accepted its value as a social media tool, perhaps pinterest is first catching on with visually-oriented women, particularly in artistic fields, and will blossom as more people understand how useful it is.

I appreciate your posts – I am in the process of finally getting a line of jewelry together, and find your advice and words of wisdom particularly encouraging.

Yes, you can communicate that you sell premium goods by attaching a premium price, but the size of your customer segment in the middle class will decrease, which is the largest sales base in the world. instead, you’ll increase your upper class audience, but these shoppers already have their pick of established retailers who offer quality and brand power. Ironically, many upper class shoppers do not shop on the web, the primary marketing and distribution agent for smaller boutique brands.

It all goes back to knowing exactly who you customer is and what their needs are. if you are targeting web-savvy creative thread seekers with a healthy wallets and a proven and unrelenting appetite for the values your unique products represent, by all means – jack up your price and dont leave money on the table.

However, if you are not, it doesnt make much sense to jack up your prices to improve perception – maybe to cover overhead, but from my line of work in finance, I’ve rarely advised that. You incur less sales risk by really understanding what is driving your whole sales prices up. Lean out your process and get your cost under control – one thing that I see far too often are brands that arent aggressive enough in lowering production costs. buying from your suppliers at wholesale to raise your margin % is a forgotten virtue.

I hate to use a car industry example, but it makes a point. would you rather sell porsches or toyotas? porsches are more glamorous, but you rely on a few sales to keep your company alive – much more risk and anxiety for business owners. its better to have a predictable sale which is more likely to happen at a lower price point.

There are hundreds of products, hand-made or not, that are sold at lower price points and still have a reputation for quality. I wouldnt partner with a manager whose vision is to raise prices to improve brand perception. In our marketspace, it’s to focus on the actual product and ensuring that it meets a need to improve perception.

But too many artists seem willing to forgo it. Many people on sites like Etsy price their work as low as possible to encourage sales. But sales are relatively meaningless if they don’t include profit. Artists should not favor the momentary thrill of “I made a sale!” over the more real and sustainable thrill of “I’m profitable!”.