There are several options when pricing goods:

  • Cost-based
  • Market-based
  • Value-based

With cost-based you calculate the raw materials, overhead, and labor expenses to arrive at a number. Then you add on a profit amount and that’s the price.

With market-based, you look at comparable items and how they’re priced.  Subtract your cost and whatever is left over is your profit.

I would argue that for handmade art, value-based pricing makes the most sense.  Look at competitive offerings.  How are yours different?  What is the value of that difference? 

If you can’t immediately define the point of differentiation, know that your customers will likely not be able to do so either. 

In that case, the knee-jerk reaction might be to lower the price.  This is the beginning of the end.  Handcrafted art cannot compete on price alone. 

Understand your target audience.  They are the people who can appreciate workmanship, are willing to pay for the unique, and value the entrepreneurial nature of artists.  If you aren’t targeting this group of buyers, you’re doing a disservice to your work.

Pricing isn’t easy but it can be simple:

  • Identify your point(s) of differentiation
  • Assign a monetary value to them
  • Target your messaging to educate your customers as to why the price makes sense

Don’t be afraid of asking for what your art is worth.

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