Wisdom Wednesday: Pondering Price

money-questions-198x300“How do I price this job?”

“How would you veterans price this job?”

“What would you charge to do this?”

The questions that are asked may differ,  but the intent behind them is the same,  someone please tell me how to price this stuff.  Make me feel that the price I want to charge is reasonable and correct.   Give me some guidance on how I should be pricing my work.  Let me know that what I do is valuable and worth what I want to ask people to pay for it.

We all know that setting a price for something can be difficult.  The dictionary defines price as “the sum or amount of money or its equivalent for which anything is bought, sold, or offered for sale”  which sounds pretty simple.   You want an embroidered hoodie.  I tell you the hoodie, decorated as you wish,  is $20.  You give me $20,  I give you the hoodie.  An easy transaction, right?

In reality,  it’s anything but easy.   First, you have the fact that decoration work is creative work, and creative work has, historically, been undervalued.  Second,  you have the fact that decoration businesses can range from a one head machine run out of a home to a company with multiple locations and hundreds of heads,  with each business having different income needs and pricing requirements. Third,  you have customers who are looking to get the best value for their money, and may have unrealistic expectations of what your work should cost.  Add in the problem of determining the value of one’s own work, let alone telling other people what you think that value to be,  and you end up with wildly fluctuating price scales,  and good decorators doing quality work who most likely aren’t making nearly what they should.

So, how do we reverse this trend?

Reversing the trend,  in my opinion,  comes down to playing the twin roles of educator and advocate.  Education starts with your company’s customers and,  really, continues anywhere your work is discussed either verbally or in writing.   The goal is to inform your customers and potential customers about what it costs to make the items you make,  cost not only in actual dollars,  but also in time and training.  Your work should always be presented as something done by a skilled craftsperson,  someone who has dedicated time and effort to learning their craft and who should be paid accordingly.     The more the general public understands what goes into the work that is being done,  the more likely it is that they will value the work more,  and expect to pay a higher price for it.

Advocacy also starts at home,  or in your shop,  and extends out to the rest of the world.   Being an advocate for the decoration community means charging a fair price for your work,  charging artificially low prices depresses the rates that all decorators can charge, and also teaches the marketplace to expect quality, painstaking work for mere pennies.   Advocacy also extends to how you talk about what you do.   Emphasize the skills involved and the work it takes to learn the craft.  Speak out when you hear or see people complaining about the price of a decorated garment,  explaining why the cost that is being charged is fair.   Be aware of those who will try to get you to do work for exposure,  as exposure can’t pay the mortgage or keep the lights on.  Make it a point to call out the people who underestimate the value of what we,  as an industry, do,  and keep pushing for the respect,  and the fair pricing structure that the industry deserves.

Pricing is always going to be a controversial issue.  A fair price for you might not seem like a fair price to me; there will always be differences in how things are priced by different decorators,  just as there are differences in where and how individual decorators do their work.   The thing to remember is that a rising tide lifts all boats,  and doing a little pricing research in your market before setting prices can help assure that every decorator gets a fair price for the work that they do.

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