You know that saying, I think we’ve all heard growing up, about crabs in a bucket. . .You know it right? The one about if you put many crabs in a bucket you don’t have to worry about any of them getting out because they always pull each other back in . . . pricing crochet is a bit like that.
When you decided to sell your pieces I’ll bet the first thing you did was look around to see what others were charging. Once you figured out the range you probably priced yourself somewhere in the middle or maybe even a little lower, so you could sell. But, just like the crabs, pricing that way keeps everyone down and rushing to the bottom of the scale. Fear of pricing at the right rate keeps us all in a bucket striving for a piece of the dream and getting nowhere.
It doesn’t have to be that way. I want to give you three solid tips for pricing your crochet to help pull yourself out of the bucket. You’ll pull out because pricing at a level that makes you feel good gives you confidence to find your own way and that’s what you need.
Stop looking around at what others are pricing and start looking, very closely, at your business. Think about it, the people you’re comparing yourself to charge for their business. You don’t know their business, their audience, or where their audience is. You only know what they’ve decided is right for their business and you’re basing your pricing on that. Stop it!
Take time to look at your business needs. What are your business costs? What is your income goal? How many pieces can you make and sell? If you look at your business first, you’ll know how and why you came to your price, giving you more confidence and better results in the marketplace.
Create a pricing scale that includes wholesale, retail and discount pricing. When you start with a retail price you’ve shot yourself in the foot. What if you’re offered a wholesale opportunity, what will you do to make sure you don’t lose money? What about when you want to offer discounts in your business, will you still be making a profit? When stores run sales they don’t do them at a loss otherwise they would never stay in business.
Creating a pricing scale gives you exact numbers for everything you want to do. A pricing scale also lets you know exactly when you’re losing money. Having a pricing scale is like having a trusty advisor. You’ll be less likely to go below your personal scale, if you take the time to create one, because it won’t feel very good.
Start your pricing high so you have somewhere to go. I’m not saying to price ridiculously high, I’m saying to keep your pricing scale at the maximum allowable level so you have a good cushion to work with for discounts, sales and price reductions. It goes back to Tip #2 and having a full pricing scale. It’s easier to lower prices than it is to raise them so start at the top.
Most of the time we run sales at a loss because we don’t consider the costs associated with running our businesses. So, we run sales and flirt with business disaster in the process. Sure we may sell a few more pieces, but what we gain will not cover the cost of running our businesses.
I always say this, and I will continue to say it until forever: Pricing crochet cannot be done in a vacuum, there are too many things to consider. Pricing one item according to what someone else priced the same item will lead to staying in the bucket. Get yourself out of the bucket. Price according to your business needs and create uniquely for your business. It’s the only way to stay in business.
I’ve heard your requests so my book “Hook Yourself Up: Pricing Crochet for Profit” will be available in paperback format. I’ve written it so you have solid formulas to use in your business based on your business needs. I want to see every business crocheter pricing accordingly so the bar can be raised for everyone. The more we understand our value, the more our customers will understand our value. It starts with each of us.
Examine what you’re doing closely then move forward with a pricing plan. Never put yourself in a bucket or a vacuum. . . your talent is worth more than that!