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Story by
bethela
Published on November 14, 2007 in How-To |
Photo by ErinCain |
There are several ways to attract and convert buyers in your store. One way may be through tiered pricing: when you offer multiple price points for a customer to consider. The car industry is a great example of this. There is always the base model, good but with very few bells and whistles. There is a middle level, with a few of the upgraded options and features and a premium level that's decked out with all the features and special options.
So what does the car industry have to do with your store? Not much, but we can learn from how they price. Great products at multiple price points can give a larger range of potential buyers an opportunity to buy something from your store. Creating different price points may also be good to:
- Induce trial — A lower priced item may be just what a buyer needs to dip their toe in the water. If they fall in love with it, they may opt in for the higher priced item the next time around. Mary aka contrary says, "A lower priced items may get people to try your items and build trust."
- Build a reputation — This is especially important if you are a new seller. Some buyers may not want to take the leap and by a $250 necklace from a brand new seller. Selling some items at lower price points may help build your reputation faster and build awareness of your store.
- Target new customers — Some customers may only be interested in your more expensive items, for instance jewelry with semi-precious stones or made of silver or gold. Some may be interested only in the less expensive items and some might just fit in the middle. If all your buyers are in the high range, try some lower priced items to attract a new set of customers. Appealing to a wider variety of sellers can increase your overall sales.
- Create excitement around your shop — Higher priced items may also draw some attention to your store. Daniellexo stated "a higher priced set of items can create excitement around your store. Everyone wants to know why it costs so much."
One seller who has done a great job of this is discomedusa. She has lots of great items around $25, like these Blade hoops and this Annelid necklace.
She also has items in the $100 range, like this filigree cocktail ring and this matrix ball necklace.
She also has the Diatomateous Necklace, a showpiece necklace or what I would like to call "buzz" piece at $2500.
This unique piece gives her store additional character.
Basilthecat also uses different price points in her store. Examples from each price point include an $20 Eight ball necklace, a $54 Rhinestone Cowgirl Necklace and a $140 Good luck necklace.
This is another pricing topic to think about as you strategize about your store as a whole. In previous articles we explored competitive pricing and understanding your costs which were focused on individual items. Tiered pricing takes into account the items you already have in your store and the overall positioning you may want to have. This is something worth exploring to see if it works for you.
Beth is an admin at Etsy on the Business Operations Team. She is writing about pricing in a multi-part series, so ask her your questions in the comments below. Last week's topic was how Theories in Discounting. Next week's topic is Bundled Pricing.
| Tags | Art of Pricing, business, HOW-TO, pricing, Seller Handbook, selling, The Art of Pricing, tiered pricing |
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56 comments Login to add your own!
PussDaddy
I agree that tiered pricing is a great way to get sellers into your store.
I will often follow a lower priced item to a store, and either buy it, it and something else, or it and put something in favorites and go back later. Being on a budget, however, I must say that in my case, I often do not follow high priced items. I just take a look at it, no I cannot afford it, and assume the whole store is priced that high and don't go there.
wiseacre
Had not really thought of having a "showpiece" item. Some really interesting points and advice.
LazyTcrochet
Great article. I've found it to be true. A varied price-point has brought me more buyers. I've had hearts on some more expensive items, but I don't know if they're a "showpiece." I suppose they could be. I wish we could have a discussion on how this would relate to being able to move items around in our shop.
fiberstation
Let us have items in our shops in more than one section. that way we can show item types and item price ranges. please please please.
I placed a post in the forums as my response to this article
http://www.etsy.com/forums_thread.php...
SalmonStreetStudio
Thanks for the article!
(and Discomedusa just rocks it, just so you know).
ValerieTyler
Thanks for the reminder. I have plenty of tiered priced items in my show inventory, but I've been a little lax posting as such on my etsy shop. I really probably shoudl get on that.
jcraft
This is a great article for me. I'm just starting my store and wondering how it would be effected by products in different price ranges. Now I know and feel more confident about do this. Thanks for the article.
JoelleDolceBebe
Thanks for the info.
I was worried if I created smaller items, (inexpensive items) that i may turn off potential buyers of my pricier items.
however, we all like a deal & hopefully those customers I was worried about will understand the offering of a variety of pricepoints.
inexpensive doens't mean less quality, right? : )
So my challenge this week is to create those smaller items. well maybe not smaller, just less expensive!
Thank you!
I love a challenge!
TheGreenZebra
patricewright
really great information. the showcase piece idea is a good one.
tealcatfan
Thank You so much this was so informative for me as a new seller here
sarahcruse
Thanks for the advice. I set up my shop several months ago and kind of abandoned it for other projects but I am ready for a new committment :)
akaisilks
tiered pricing works well for me, too..I have discounted or 'oops' items if i make dye mistakes and they sell well
simplylovlee
GreenShadow
CoolSunshine
GoodWitchCreations
This article helped me get started. Thank you so much. I have to tell you...Etsy is just amazing! I can find any answers to questions I've had just by browsing around this site. I'm more confident that I can move forward with my craft now. Much more to come! What a great group of people! Thanks again. Tara
handmade1craft
Dreastore
akaisilks - thanks for the idea. I have some handbags that end up not being quite "perfect" enough from time to time and I always wonder what to do with them. Selling as an "oops" for less is great. You can still sell it without calling into question your craftsmanship or integrity or taking a total loss on it. Great idea.
lizalady80
i haven't even started making anything yet, but reading this article made me feel more motivated and excited to start up soon. i'm very happy you have such helpful information for people like me who don't make anything yet, but are seriously considering starting their own business. :)
SimplyIndependent
THanks for the extra pricing information! It was very helpful!!! =)
LJNixonartist
Thank you...I had considered this...but now will definitely apply it to my shop.
jolijoli
Thanks you! Great advice :) I'm going to have to rethink things a little now.
rozzie
artichokey
I agree that being able to list items in more than one category would make shops more search friendly.
OpusMuse
RotsinaCreations
tHEkINGaNDi
this is great info! i was thinking about revamping my shop this year with a new "makeover look" but now i may also incorporate a "makeover pricing" as well! thank you for this insight!
hempandmore
Interesting, was already thinking about this - didn't know it actually had a name - THANKS!
SumpinElse
SimplySusanJewelry
artbymsr
maiziedesigns
Thanks for the input and examples for Etsy sellers. This makes things relatable and inspiring.
stylesbym
I found this article to spark some ideas for my etsy store as well as my main store. Thank you very much!
vhandbags
Thanks for the info. I've always done craft fairs and find that it's easier to sell in person, so any info to sell online is very much appreciated.
Vanessa
wristcandycreations
Loved the idea of including a showpiece item. Thanks for the great info!
michon
great article - I found that introducing inexpensive items really helped me get sales during the holiday season. Now I'm working on stocking more mid and high priced items and maybe a showpiece or two.
Pollyfrog
Thank you for your great info. You have given me some ideas to follow through with. Pollyfrog.
CricketsCreations
Yes! I used to price every, single scarf in my shop at $40...I recently added my "Fringie" photo prop line starting at $55 and going up to $95 and now offer home decor throws for up to $225 each.
This has really expanded my market; I'll soon see my 600th sale in just over a year and I've obviously increased my average purchase price substantially!
Thanks for making an important point. :)
Celeste (Crickets)
parltradet
A lot of good advice. But I have figured out much of this on my own. Tt is nice to see that someone else is thinking along the same lines. I am surprised, however, to see such high prices.
Maybe it looks that way to me because the Swedish crown has dropped again. My profit margin is also rather small. I am trying to give my potential customers a chance to try my products. I try to think like a buyer, a buyer who has champagne-taste on a beer-pocketbook! People must think that I sell poor quality products. I don't. I really make an effort to make fine jewelry out of good materials and mostly sterling silver. I think a lot of sellers charge too much for their products.
But maybe all of this is just a sign of the times. Lots of people have a tough time with money and first thing they save on it luxury i.e. jewelry.
Thanks for listening...
parltradet
I am going to try to have a few high-priced items in my store to see if it helps my image. I had a lovely necklace that I charged a little more than I usually do, but my sister-in-law asked for it as a Christmas present. So I GAVE it away! But I can make more... And I will!
ecolemancruz
I always price way too low, and although doing tiered pricing, it was still helpful to see some solid examples and tips.
baddoggie
I'm new to Etsy and have been trying to figure out the buyers here. I sell vintage toys and dolls which normally price themselves. I have tried to price my items lower here on etsy in hopes of drawing repeat customers and getting customer requests. With only a month's worth of sales to analyze, it is still difficult to get a feel for where the buyers are at with spending. I do have a wide range of pricing currently my most expensive doll is $250.00 and my least expensive is $3.00. Hopefully I'll start to see some repeat buyers and get some better information to price accordingly. Loved the article!
SweetDollFashions
I too am new to Etsy, so I greatly appreciate these tips! Diversity seems to be the way to go! I try not to charge too much for the time and energy that go into the items sold in my store, but I realize it's important to reach out to buyes of all budgets. Great article!
RolledOats
Great advice, your other articles on pricing are also really helpful. Thanks
chubbycheeksweaters
dipromma
Liyana
enchanteddolls
Great advice and its true. I was advised to start with plenty of inexpensive items, so I made lots of little fuzzy bunnies with carrots. They sold for eight dollars a piece and then suddenly I sold two $95 items. Oh happy day!
stoneandbone
Just what I was looking for. I had that idea, but I read some where that to do that wouldn't be so productive. But I figure why not. I do offer something of what you're describing, but will do a little more vamping on my prices and tags to see if it will make a difference in my shop. Mahalo for the great info. Keep it coming.
WanderlustBling
I love the idea of a buzz piece. It's really gotten my creativity going - thanks!
enchantedbeading
Great info. for a newby. I hadn't thought of showpieces. Although I did think of tiered pricing.
PrudenceOctavia
mossyrockpottery
Yes, I agree. I've been selling my pottery at festivals for 16 years. The "Wow" factor doesn't necessarily sell more "Wow" pieces, but it will sell more of the smaller items. You've grabbed their attention with the fancy item, but it's the smaller items that sell.
They may like the large expensive, fancy item, but they will usually buy something more affordable, know when to "switch them" or draw their attention to your best seller.
Also, if you can create a memory in the mind of the buyer, then they will like your stuff more... I remember doing a magic trick for a kid, while his parents checked out my stuff. They came back later and bought from me. As they left the booth, they were saying, "This will be out souvenir from Oregon". I created a memory in their minds. That converted to a sale.
How can you make someone remember your shop? Remember, they want to be "wow-ed", but they will usually buy 1. Something novel or 2. Something affordable.
amberstudios
Thanks!!! I got more information from your article than from three books of marketing.
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Excellent article ;)