Often, I come across woodworkers (or other similar artisans) that sell their goods too cheap, in the mistaken belief that people will only buy low-priced items, and certainly, many businesses do well with the high-volume, low-price model; just ask Sam Walton, or William Wrigley.
But just like fishing, the more expensive bait or lure you throw in the water, the larger fish you should get.
In an ideal situation, in woodworking, making a “X” would take minutes, and we could sell it for thousands.
Of course, that doesn’t happen; but we should get as close to that as possible, if we are in woodworking to make a living, or make some extra cash.
You have to get out of the frame of mind that selling more is good; usually, it’s not. Yes, we want to sell as many units as possible and make in turn, more profit. But there are other things to consider.
The benefits of selling items at a higher price:
- Less units to build for the same profit.
- Higher profit margin
- Less sawdust, tool abuse; less materials to buy, including finishing materials.
- Less likely to get hurt
- More time to market, design, or free time.
The drawbacks of selling at a higher price:
- Less customers
The benefits of selling at a lower price:
- Exposing yourself to a wider audience
I think that aiming for the slow dime is best – I would rather build one (for example) clock at $800, then two at $400 each. This is why I advise against selling wholesale to retailers that mark up 100%. I just don’t see the benefit in that for the artisan – unless you can make a decent enough profit, but still….
Just some meandering thoughts on this subject….