December 2007
BUSINESS HINTS
PRICING YOUR CRAFTS
Beating the Wal-Mart Mentality
First of all I don’t have anything against Wal-Mart as an entity. My family should be on their quarterly profit report statement for the amount of money we spend there each year.
This writing is to help counter what I call the “Wal-Mart Mentality”, a phenomena that takes over the purchasing decisions of people who will almost always choose price over quality. So please, no nasty emails telling me I shouldn’t hate Wal-Mart. I don’t !
Everyone who makes hand-made products knows the Wal-Mart Mentality. It’s the thought process when people shop that says to them” I can get the same thing at Wal-Mart for less money.” Or “ I can just buy a gift at the mall and save money.” Basically, it comes down to: Price over Quality and to crafters that means Manufactured versus Hand-Made.
Of course manufactured items can be made for less money, so the finished product is less expensive. However, while saving money is important to any business, crafters should not try to continually beat the prices of chain stores. Selling low to beat the mega-stores is a “ race to the bottom” that you will eventually lose.
Here are some ideas on what works to help your hand-made business thrive in a manufactured world:
- Quality – The adage “You get what you pay for.” Is often true, especially when you are talking about manufactured crafts versus hand-made crafts. Point that out to your customers. The best way to do that is to provide superior workmanship and let people know about it in your marketing.
- Customization – Sure, the shopper can get a wooden-floppy-eared-bunny-basket at the discount store for less money, but you can personalize it to their granddaughters name on it! And again, if you provide customized pieces tell your would-be customers at every chance you get. Special colors i.e. High School Team Colors etc.
- Service – I know all of the commercials show that each brand has the highest
customer service levels in the world. But the simple fact of the matter is that these are huge organizations and cannot make each employee enthusiastic over serving the customer. But you can! And that goes for you, most importantly. Even if you are having a bad day, be sure to greet your customers and smile as they enter your business. If someone has a problem with an order they placed, take care of the problem quickly and in a friendly manner.
- Uniqueness – This area is where you can really crush the large corporate entities with your craft. The word “unique” does not typically apply to things that are made by the hundreds-of-thousands. But it can with your hand-made items. Remember to point that out in your marketing: “Why go to the big stores and buy your loved ones something that everyone else is getting? Get them something special!”
- Price – Yes. You can use the Wal-Mart Mentality’s strength to its disadvantage. Not everyone will want to save when they are shopping. For instance, high-quality ornaments are cherished by collectors while cheap manufactured pieces are not all that special to many people. In candles, you want to give one that will perform to the max, i.e. hand-made.
The Wal-Mart Mentality is a factor that every modern craftsperson and artist must take into account. By facing this quandary, you can help to alleviate its effects on your bottom line.
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