I have a confession to make. It’s a pretty major business decision that I made early on, and I am embarrassed of it now. I read plenty of good advice and chose to do the exact opposite of its instructions. I was stubborn and too sure of myself when I shouldn’t have been, and even a little offended by the advice. I purposefully ignored what all of the handmade business experts were recommending me, and strut off in the other direction.
The good advice I shunned so fiercely: Don’t use price to attract the bargain hunters. You don’t want these people to be your customers.
My initial reaction to this advice was, of course, what’s wrong with bargain hunters?! Everybody loves a good deal, and most of us don’t have money growing on trees in our back yards. Of course we want a good price! I wanted my stuff to sell, so I went low. And by low, I mean, LOW.
Here’s where my logic was flawed: a good deal is not the same as a cheap deal.
I was offended by the notion that bargain hunters are lousy customers. This was because I thought of myself as one, being the thrift-store-shopper and coupon-code-googler that I am.
When I first started selling my beaded goodies, I stubbornly set my prices as low as they could go, and in some cases, even lower than that. I was able to get some sales, but wasn’t really making money after supply costs and payment fees were taken into consideration. So, after a few months, I raised my prices a little bit (just a little) so I wouldn’t be recording yet another loss come tax time.
It was after I raised my prices (again, this was only marginally) that I realized I had been attracting some of the wrong customers in the beginning. One particular customer, for example, had me create a gigantic custom order for her. As with all of my custom orders, I only ask for payment upon completion if the customer is satisfied with how the product turns out. This particular customer ended up having me remake several pieces before she purchased. This part was fine with me, I pride myself in the costumer service I offer for my custom items along with everything else I create.
Here’s the thing though: I thought, that after all of that work and the raving feedback this customer had left for her finished pieces, she would be more than happy to purchase from me again–even after my prices had been (only slightly) raised. BUT, a few months down the road, she contacted me regarding yet another custom order, and asked for a price quote. I sent her a quick response, letting her know how much the price would be and that I would love to be able to work with her again. I never heard back.
A few weeks after that, I was casually browsing through Etsy (Christmas shopping, actually, you guise all know how much I adore getting handmade gifts for my peeps), and I spotted a reserved listing, and my previous customer’s name was in the title. I am a guilty snoop: I had to check it out. The listing was for the exact custom order she had asked me to do for her, but from another seller who was willing to go cheaper.
Even though I had worked so hard and gone above and beyond for this customer, a minor increase in price was enough to make her go somewhere else. That is the real crux of the bargain hunters: they are not loyal. Bargain hunters will look for the lowest possible price. You can do the best job in the world for them, but if they can find it lower somewhere else, off they go.
Being thrifty on how much you will pay for a factory-manufactured blouse is not bargain hunting. Bargain hunting is trying to convince an artist to lose money on something they hand craft especially for you. Bargain hunters hurt the handmade community as a whole, and from now on, they can find their cheap deals somewhere else.
If you are a handmade seller, I hope you can learn from my mistake. We all put too much love and work into the creation and design of our pieces to have anyone scoff at the value we’ve placed on them. You are worth so much more than what the bargain hunters will give you, and so am I.