LESSON 1 : WHAT I WISH I KNEW ABOUT : PRICING


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 photo by Rustic White Photography

photo by Rustic White Photography

   When I was starting out 6.5 years ago, I had just graduated from art school with a whole bunch of artwork laying around. All I knew is I wanted to keep painting so I decided to make a business and try to sell the work I had. My hope was that by selling it would enable me to 1. provide for myself, and 2. be able to make more paintings! (By the way, I ended up working several part time jobs over the next 2.5 years before I took the plunge to full time!) Then, I had my first business problem to solve-
HOW DO I PRICE?!

   Mistake #1: I had no idea what I was doing, I basically polled friends and family and made up a number with no real "WHY" behind it.   

Because of this I learned the hard way that my pricing "model":
- was hard to stick to because I wasn't confident in my WHY nor did I understand my true cost- thus I would offer discounts and vary my pricing based on the job, etc.
- prevented me from certain wholesale or design opportunities because I had no margin for profit
- did not account for taxes, which left me up the creek during tax season!

Since then, my friend and business coach, Shanna Skidmore, helped me learn that pricing really has to come back to knowing my cost : HOW MUCH TIME + HOW MUCH MONEY does it take to make my product. This is the "WHY" behind my pricing now. Once I understood why I priced the way I did, it changed my entire business and for the first time, helped me to be confident in my pricing!

My takeaway for you: Sit down and review your past 3 sales. Look at the price you charged and compare that to what it actually cost to make that product (how many hours, how much money- don't forget packaging, hardware, supplies, etc). How do you feel about your price once you see your true cost?

HAVE FUN! See you tomorrow for lesson #2!