Selling Price Point – Cutting Prices in a Recession

Although the Internet allows handmade sellers to sell their products to anyone, anytime, and anywhere around the world, the world-wide recession is beginning to take its toll on both buyers and sellers alike.  All around us, businesses and financial systems are shutting down and we read daily about others losing their jobs and their houses. Is there still a place for selling handmade online?

“I feel that the recession has impacted the handmade online community in a number of ways, one of them being the amount of listings we can afford to list,” said Victor Colon, a seller at both ArtFire and 1000 Markets.

“Another way this has affected the online community is by creating an atmosphere of doubt, you start questioning yourself during these times!” Victor told us.  “I see a lot of online sellers doubting themselves, doubting their price points and stressing out about sales.  I see a lot of unsure, hesitant and leery handmade sellers, not understanding why they are not doing better. There is a lot of confusion because of this unsure time. But I also see a community that is strong and will continue to be a force.”

“As a designer, I have been really worried in this trying time for my customers,” said Victor.  “I have always been able to create on a budget.  However, that does not mean that my clientele have money to spare in this recession.  For my handmade shop, I have seen the effect of the recession in the number of items purchased and the hesitation to buy more expensive items.”

“In turn, I have been forced to try and create so that my costs are much lower.  I have incredible prices already for the amount of work involved in my craft. But instead of feeling good about my price point, I was moved to see what I can do if I really tried.”

Victor told HandmadeMarketing.org that he has always been a great bargain shopper, but he thinks the recession requires more than effective shopping.  ”I care as much about my clients as I do about my creations, so a part of me knew that cutting my price point once again would be something I have to do.”

“I have always considered it part of my business to keep my costs down,” Victor told HandmadeMarketing.org.  “I have never been one to try and get top dollar for a piece. When I create I create in several price points, I have always wanted to make my work available to all people.”

He set out to find new suppliers and new ways of utilizing components which would be cost effective.  He also tried to discover knew ways to use these everyday items.  ”This is not easy when you have a “formula” already in place,” Victor said.  “But I found a new supplier one that keeps their costs down, so I can keep mine down.  Even though I have never been one to mark the highest prices for my pieces and have always been fair about pricing, thinking about my clientele is always part of my creation process.”

Victor was able to come up with his new “Recession Line”.  In the end, what has been the impact of Victor’s “Recession Line”?

“At this time, I have not seen any changes in sales my sales remain consistent, but support for my line has been amazing!” Victor told us.  “I love my recession line. It took a while for me to find the cost effective pieces.”

“It has been very interesting,” Victor continued.  “I get a great response from my clients as they think I am just nuts for trying to make my handmade designs even more cost-effective. From other handmade artists, I get negative feedback. They think I should raise my prices. But this is something I have done for the benefit of my clients, because I think they are worth it.”

“It is very sweet.  It seems that my customers don’t really care about price,” he said.  “If they want a piece they want it regardless of the price. But they love buying it at my price point.  It has impacted my clients, but it has impacted me as well as a designer and a person. When you take that extra step to make a difference for someone else you can feel it! It is empowering!”

“Please look them over and see what you can do if you put your mind to it and care about your clients as well as your work and your business. Stay creative and remember there is always a way around any obstacle you simply have to find it!” he said.

Victor wanted to share another ounce of encouragement with HandmadeMarketing.org readers.

“My friend owns a Gallery and has the very same problems as I do… little to no sales. So it is not just online sales but sales across the board that have slowed. And like everything this to will pass, and until it does I will create and continue to make it more affordable!” he said.

You can see work by Victor Colon at both ArtFire and 1000 Markets as well as check what he thinks about selling online at his blog.

What do you think of Victor’s “Recession Line”?  Do you think the idea could help you entice buyers and cut your own costs?  What marketing ideas do you have for the recession?

Tell the HandmadeMarketing.org community your tips for selling handmade online in a recession.  You can submit your ideas to our editors under the “Join” tab.  If we publish your tips, we’ll link back to your shop or blog – hopefully steering more shop views your way!