The Psychology of Marketing

[michelle]

While perusing Pinterest yesterday I came across an embellished jean jacket. it was interesting and pretty so I followed it to an Etsy shop. This Etsy shop: www.etsy.com/shop/MyQueensWish?ref=simple-shop-header-name&listing_id=767948092&section_id=23055930 

While I do find her work interesting, original, and pretty, my jaw dropped when I looked at her prices. And it dropped again when I saw that she’s had 348 sales. I mean good for her, but I obviously don’t have her confidence to price my work at a premium. I am somewhat familiar with some of her techniques, and so I have some idea of the amount of work it takes to create these embellished pieces, and it would never occur to me to charge these prices. I’m thinking I’m doing pricing all wrong!

[DawninCal]

Pricing is a tricky thing. I'm currently spending a few days in the Bay Area and the prices here are shocking to me.

We were in a very busy shop the other day where a package of eight party napkins was $30. Blank postcards were priced at $10 (for one card). Then I saw the earring display - there could not have been more than $5 - $10 of materials in them, but they were selling for $150 - 200 a pair. For a simple design that any one of us could easily make.

And, the thing was, people were buying without so much as blinking an eye.

Of course,one has to consider their target market. The Bay area is one foremost expensive places in the US if not the world and the people who live there are used to paying these kinds of prices. Where I live,those items would languish on the shelf.

But, after seeing those earrings, I'm sorely tempted to raise my prices!

😁

Dawn

[caeterle]

You probably are doing it all wrong, Michelle. I know I often am thinking about the hours of work I put into something. Never got right although I've been through endless discussions how to do it.
To be honest, I wasn't surprised about the prices at all and if she manages to pull it through, good for her. Obviously she has managed to address the right people with her work.

[Irith-Rita]

Cat is quite right. In addition, it seems the seller you referred us to, is smart in choosing her main subject - Frieda Kahlo. One of the most popular figures and symbols, then there are other popular symbols too, and I suppose the time and work invested in collecting the right images is included. She also uses only expensive brand name jeans.

I have a friend who teaches pricing. I realized myself, that after investing time in the design, silver, stones, vermeil and gold plating, electricity, promotion fees to the shop, free shipping, etc.. I had to raise my own prices considerably. I decided I am not going to invest my energy time and money without earning something reasonable. (besides - for me the number of sales doesn't count too much, I rather care about how much I enjoy doing what I do. If people don't buy, I do mind, but not too much).

Also - when I see someone has thousands of sales of silver earrings with stones for $under $40.00 I immediately know that something is wrong. Either the seller owns a sweat shop somewhere in the world, or the materials are not authentic.

And - "knowing to address the right people", as Cat says, is something one needs to have a talent for.

[Sophy]

I think there are a lot of people with more money than sense. But many people are desperately trying to stand out (in their Instagram feeds, no doubt), so one of a kind items like this shop has are going to be popular. Especially with people who have no idea how to make something like this.

If you can find people who will pay those prices, go for it!

Edited to add: I just took another look at the shop. Basically she is finding jeans in thrift shops (I imagine) and sewing some patches on them. This is genius.

[michelle]

I knew each of you would have interesting thoughts on this topic. The prices in San Francisco are incredible, Dawn. Whew! Cat, I know what you mean about the hours of work, and then I overthink it. I mean, I will always be making something so I gave a tendency to feel my time isn’t that important. But I like Irith’s take: if you’re going to make things anyway, price it for what it’s worth and who cares if it sells. And Carole, I think you’re right that some people have more money than sense. I wonder if some people actually feel expensive are somehow better?

[DawninCal]

I wonder if she is violating any copyrights/trademarks?

Not meaning to open another can of worms; just something that popped into my head as I was looking at her items. I bring it up because I've had it pounded in to me that it's not cool to profit off of other people's work/images unless they are in public domain. I'm too tired right now to check that out.

But, I am still thinking about raising my prices as I like Irith's thoughts on that. I've always tried to keep them low because I thought reasonable prices would attract buyers, but it's obvious that it mostly does not.



Dawn

[Irith-Rita]

Dawn, I have a small personal story to tell:

I once set up a stand at a Jewelry selling event where many jewelry makers were selling their handmade things. I intentionally lowered my prices because I wanted people to buy. A woman approached my stand, picked up a necklace which included authentic Ambers and handmade Sterling silver additions, and said "why is the price so low? is it damaged?...". Then she moved on to the next stand.

[DawninCal]

That's a very interesting story, Irith. You've given me something to think about with regard to my pricing. Thank you!



Dawn

[Irith-Rita]

Thank you Dawn:)

[michelle]

Interesting question about the copyright, Dawn. I think you are referring to her Frida Kahlo patches, right? Not being a mass producer, she likely won’t attract attention in regard to copyright, unless someone stumbles upon her shop the way I did.

What a telling story, Irith, about the woman who though the necklace might be damaged because it was priced low.

And yes, Carole, I agree that it is genius.

[caeterle]

There are a lot of stories around about people who didn't sell their work until they increased prices. I still think it depends on the audience you have. I also think it makes a difference if you sell in person where people can see an item, if you do what kind of market it is, how big the competition is, or if you sell online and still try to find your circle of buyers.

[Irith-Rita]

Michelle, I suppose you don't really know whether she did or didn't buy the pieces or received permission. I believe she may have.

On the other hand - Frieda Kahlo pictures, prints and and photos are all over the place. You cannot tell where she got them, and I don't believe anyone could sue her for it. Frieda Kahlo herself save her soul, is not around anymore to sue the first people who made money from her name, including those who made the movie about her and all the publicity that has followed.

Neither is Mozart
Neither is Van Gogh.

And many other real geniuses who barely had anything to eat to keep them alive and well, while others have become billionaires on their poor backs.

[caeterle]

The use of Frida Kahlo's artwork is allowed because it's in the public domain by now (Mexican law, she died more than 25 years ago and before 1956, after 1956 it's 100 years after the artist's death).

Different countries have different laws. For example, books in Germany are only in the public domain if the author died more than 70 years ago (that's also why the English Gutenberg Project site won't allow Germans access anymore "A Court in Germany ordered that access to certain items in the Project Gutenberg collection are blocked from Germany. Project Gutenberg believes the Court has no jurisdiction over the matter, but until the issue is resolved, it will comply."
Copyright matters are never easy.

[Irith-Rita]

Thank you Cat. Interesting information!