Something niche to my field (custom furniture and woodworking) is that RAISING prices can increase sales. Wealthy clientele want both a piece that is quality, but also something “worthy” of gracing their home.
A mentor of mine had beautiful, handmade pieces for 600$. He was still in his “starving artist” phase and kept slashing prices to make some money back. He had lunch with a friend who was a painter. he discussed the amount of time (30 hours) and materials that went into these pieces and they weren’t selling for even 600$. She immediately told him he was insane and to jack up prices. He told all the stores he was showcasing in to raise the prices from 600$ to 3000$. He sold ALL 10 of them in 3 months.
Pricing is a careful balance of charging what is fair, and what the client expects to pay. If you are building a dining table for a client that has $500k worth of art and paintings covering the walls, he is expecting to pay in excess of $50,000. If you quote him $10,000, hes gonna get cold feet and go to someone else charging more.
Same phenomenon in this video. Banksy selling pieces for 60$ on the street and barely sells any. His pieces usually sell for $20k
Something niche to my field (custom furniture and woodworking) is that RAISING prices can increase sales. Wealthy clientele want both a piece that is quality, but also something “worthy” of gracing their home.
A mentor of mine had beautiful, handmade pieces for 600$. He was still in his “starving artist” phase and kept slashing prices to make some money back. He had lunch with a friend who was a painter. he discussed the amount of time (30 hours) and materials that went into these pieces and they weren’t selling for even 600$. She immediately told him he was insane and to jack up prices. He told all the stores he was showcasing in to raise the prices from 600$ to 3000$. He sold ALL 10 of them in 3 months.
Pricing is a careful balance of charging what is fair, and what the client expects to pay. If you are building a dining table for a client that has $500k worth of art and paintings covering the walls, he is expecting to pay in excess of $50,000. If you quote him $10,000, hes gonna get cold feet and go to someone else charging more.
Same phenomenon in this video. Banksy selling pieces for 60$ on the street and barely sells any. His pieces usually sell for $20k
https://youtu.be/7mxJT2uXtrE
People are HIGHLY class oriented and kind of stupid. The price is not the piece but what it says. They want a piece that says “I’m rich as fuck”.