M + K Collective

How to charge what your product's worth

Frustrated with customers who say they want handmade, but don’t want to pay handmade prices?

Fed up to the point where you’re tempted to lower your prices?  

Here’s the thing, if your customers don’t understand your prices, the problem isn’t the price. The problem is that you aren’t clearly articulating the value.  

Your customer doesn’t know that your jewelry sits heavy in your hand and a necklace made in China feels like it might break if you squeeze too hard (or if a baby tugs on it!) 

Your customer doesn’t know that the knit dolls you sell were dreamed up while you played with your own grandbabies. That each one has a unique story that you hope will spark the imagination of your customer’s children.  

Your customer doesn’t know that you spent hours perfecting the placement of each letter to get a design just right.  

So TELL them 😊  

Show them the process in a video or a series of photos.  

Tell them the story of the doll (and maybe include it on a pretty card in your packaging.) Help them see the value of what you’re offering, not the number you set as the price.

Understanding and conveying the value your product offers is THE KEY to charging a price that lets you build a profitable business (and feel confident doing so.)  

Need help? Start with this simple exercise:

Set a timer for 20 minutes or spend 10 minutes now and then come back later for another 10 minutes (sometimes a break in between is good to get the creative juices flowing.)

Make a list of the VALUE your product provides to your customers

These can be short statements - “prettier house” - or a phrase - “makes drinking coffee a lot more fun.”

If the value isn't jumping right out at you, I want you to do the following:

  • List out how and where you envision your customers using your product
  • Think about how you want your customers to feel when they use your product
  • Review the phrases you wrote down and write a single sentence explaining the the key change (value) your product creates in your customer's life

 

Here is an example using faith-based wall art:

  • Customers hang their scripture verse in their living room or dining room
  • Every time they walk into the room they are reminded that God is with them; they feel loved on their good days and take strength on the bad days
  • My wall art reminds my customers to trust in God's plan and embrace each day as it comes  


Share your rough draft using the buttons below and use #mandkcollective so we can help each other out!

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HEY THERE!

I'm Michelle and I can't wait to help you build the product-based business of your dreams.


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