ASLU 056: Pricing Your Products (and 'Productized' Services)
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From original artwork and crafted goods to products based on your designs or creative services, this week Melissa and Heather discuss how to price those products and "productized" services as well as how to raise those prices if you're not charging what you should!
In last week’s episode we talked about how project based pricing for your creative services can give you a lot of flexibility to gently raise your rates. But what happens when you sell services that are like products? Think of things like courses, design templates, a package of social media graphics, a copywriting package of a month’s worth of newsletters. These are services that are almost like commodoties.
And what if you sell physical products like original artwork, jewellery, sculpture, handmade leather goods? Or you make or have goods made based off of your original creations or designs - like art prints or stationery, a clothing line or a book of your photography? How do you know if you’re charging enough or if you should charge more?
If you just want the links to the resources mentioned in this episode, scroll down to the bottom.
Listen To the Episode
Here’s a direct link to Episode 56 . You can also listen via the player below or on your favourite podcast app (Apple Podcasts, Spotify, Google Podcasts, Amazon Music, Stitcher, and more). Just search for And She Looked Up!
your prices should reflect…
…the value of what you’re selling.
pricing your products and productized services
When you do project based pricing you have a lot of flexibility for both yourself and your client. But when you start to sell physical or digital products or products that are based on a package of your services, that flexibility disappears. You have to have a hard, usually published, price that’s accessible to all who are interested.
How do you figure out what that price should be? And how do you raise the prices on those products if you’re selling them for way too little?
In this episode we discuss:
pricing based on the value you bring to your client (when it comes to productized services). How much time are you saving them? How much money are you saving them? How much money are they able to make by using your services? This all needs to be factored into your pricing.
recognizing your value when it comes to pricing your original artwork. Should your original work be discounted?
working out what it actually costs you to create an original piece of artwork: raw materials, business overhead and your time
repurposing original artwork and creating more accessible products from it - either handmade or mass produced or licensing your work
are you pricing your work or your products in a way that leaves you margin to sell your products at wholesale? Do you know how to do that? Are you leaving money on the table?
Do you know exactly what it costs you to make your products? Have you factored in things like loss and business overhead and taxes? What about platform costs (Etsy fees, Shopify annual fees, payment processing fees)
can you reduce the cost of your product?
boost your shopping basket number - can you convince people to buy more items in one purchase? Offer bundles?
group education products/classes raise your hourly rate and can be “productized”
give a heads up before raising the price - give people the opportunity to buy at the current price while letting them know it will be more expensive next time
offer a beta testing price - this could work with a subscription box as you test out the premise.
do market research on your pricing
Mentioned In This Episode
- Episode 55: Raising the Rates on Your Creative Services
- Episode 509: Restock Models, Launch Strategies adn Growth Tactics For Your Product Business - Strategy Hour Podcast
- Multi-Stream Machine by The Product Boss
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