As the seasons change, retailers clearance out the old products to make room for new ones. Cutting for Business readers have been sharing great deals they have been getting at local craft stores with me. I wanted to take a few minutes and write a quick post about pricing handmade items when you’ve bought supplies on sale or clearance.
Rule of thumb to follow: No matter which pricing method or which pricing calculator you use, you should price your handmade item with the assumption that you paid full price for the item. Example: A supply normally costs $9.99, and you got it on clearance for $0.99. You should use the $9.99 price point when pricing your handmade product for sale. If you are having problems pricing your items – see this post.
There’s two more ways to take advantage of great deals: 1) If you’ve picked up a great deal, you can also use it to your advantage and implement what’s called a low cost strategy. This simply means that you determine your retail price and set your product price below the appropriate retail price in order to gain exposure to your business or get people talking about your company. 2) When advertising your product for sale, use words like “Limited Quantity”, “Special Release”, or something similar. By using this style of wording, you can often get buyers to buy immediately because they understand when the product runs out – there is no more!
I hope you’ve scored some great deals lately that will help grow your small business!
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