Deb from PaperCreationsbyDeb 9:24 am 22 Jan, 2014 EST
You certainly can take a customers perception of worth into consideration when you do your pricing.
Which customers will you use? The bargain basement hunter, the “I want it, but can’t afford it” shopper, the “I can make that cheaper” shopper….—-
Molly Spilane from UniqueArtPendants 9:28 am 22 Jan, 2014 EST edited
In marketing there is a term called “perceived value”. That means what average customers perceive the item to be worth in their head.
Many sellers do have to take perceived value into account when pricing their items. For example, you can spend a million hours making, say, a scarf but that doesn’t necessarily make the scarf worth a million dollars. The perceived value is lower.
With that said, there are ways sellers can make the perceived value higher. Great photos, branding, presentation, artist bio, etc.
Also - perceived value isn’t always a downer. For example, if I used a straight, across the board pricing formula for all of my items I would actually be charging less for some items I sell. I don’t do that because some of my items have a higher perceived value therefore I can make more money and price them higher than a standard formula would say to.—-
Jane from OpenRangePreserve 9:28 am 22 Jan, 2014 EST
I don’t think the customers’ perception should have the final say. If it did, we would all be saying Make me an offer! I think you are more likely to know the worth of your product because of all the things you mentioned. So don’t let nasty comments influence you. If that person walked into Neiman Marcus and made that comment, NM would not lower their prices.—-
Robin from CustomPortraitArt 9:29 am 22 Jan, 2014 EST
It’s the only thing that matters.
You can control to some extent increasing that perception of worth, but the bottom line is it is worth what someone will pay for it.
But not what EVERYONE would pay for it. Otherwise, we’d be giving our stuff away for free, literally.
Not everyone is going to perceive that worth at whatever your price what you sell, but that’s okay.—-
Bob from BirchCreekLeather 9:35 am 22 Jan, 2014 EST edited
Yes, the customer’s perception of worth ALWAYS plays a factor in pricing; that is why companies have entire departments dedicated to advertising and marketing. They are constantly trying to INFLUENCE the customer’s perception of their products. A designer shirt (which may very well be made in the same factory as a Wal-Mart shirt) is priced totally on perception of worth.—-
Sorry this post is long but it highlights a lot of the things OTHER than the art itself that you will need to deal with if you start your own business selling things. Some of the quoted opinions above conflict with each other but they are all still valid and interesting thoughts - form your own opinion on if you agree with them or not.